The Company requires an affidavit by the owner stating (1) the reason for the application for title to be insured at this time, (2) the owner has no knowledge of any claim of any right in or title to the land, any encumbrance or lien of the land, or any defect in the title or interest therein to be insured by the Policy and not covered by an appropriate exception in the Commitment, and (3) the owner has been in actual possession since the time of acquisition of title and no other person has been in possession.
Comment: A request for an Owner Policy is highly suspect if there is no current sale or mortgage transaction. You must determine that there is a reasonable explanation for the request for the Policy and that the proposed insured is in possession. You must retain the standard exceptions in the Policy. You must not issue a Policy to heirs or devisees unless you secure the Company’s approval.