Insurance (GIN) — Title 22. Title Insurance
Statutes in effect as of October 1, 2026.
Subtitle 1
(a)
In this subtitle the following words have the meanings indicated.
(b)
(1)
“Abstract of title” means a representation of the state of title to property based on a review of the records that impart constructive notice relating to title to property in the State.
(2)
“Abstract of title” includes a report of title and any other written or electronically created or preserved representation of the state of title to property.
(c)
(1)
“Title insurance commitment” means a written statement of the terms and conditions on which a title insurer is willing to issue a policy of title insurance if the title insurer accepts a premium for the policy.
(2)
“Title insurance commitment” includes a binder.
Premiums for title insurance shall be set out clearly and subject to the approval of the Commissioner.
(a)
Except as provided in subsection (d) of this section, when, in connection with a real estate transaction that involves a purchase money mortgage or deed of trust on land in the State, a title insurer accepts a premium for a policy that insures the title to the property or the title insurer, its agent, or employee accepts a premium for mortgagee title insurance, the person first accepting the premium:
(1)
shall insert the name of each insured in the title insurance commitment for the title insurance; and
(2)
immediately on receipt of the premium, shall deliver to the buyer or agent or attorney of the buyer written notice:
(i)
of the name of each insured under the policy;
(ii)
of the face amount of the policy;
(iii)
of the buyer’s right and opportunity to obtain simultaneous title insurance in the buyer’s favor;
(iv)
of the additional premium that will be required for purchase of simultaneous title insurance in the buyer’s favor;
(v)
that the buyer’s title insurance will be subject only to the contingencies and conditions contained in the title insurance commitment and policy;
(vi)
of the buyer’s right to review the title insurance commitment or a sample of the form of policy in which the contingencies and conditions will be inserted;
(vii)
that contains a clear statement of the contingencies that must be satisfied to make the buyer’s policy effective, if the buyer’s policy is not effective on payment of the premium; and
(viii)
that the title insurance commitment or sample of the form of policy into which the contingencies and conditions for insuring will be inserted:
(1)
does constitute a statement of the terms and conditions on which the title insurer is willing to issue its policy of title insurance if the title insurer accepts a premium for the policy;
(2)
is not a representation as to the state of title; and
(3)
does not constitute an abstract of title.
(b)
Before disbursing any funds, the person required to give notice under subsection (a) of this section shall obtain from the buyer, at the time the person delivers the notice, a statement in writing that the buyer has received the notice described in subsection (a) of this section and that the buyer wants or does not want owner’s title insurance.
(c)
(1)
The person required to give notice under subsection (a) of this section shall retain the original signed statement of receipt required by subsection (b) of this section and a copy of the notice required by subsection (a) of this section for 3 years.
(2)
The statement of receipt and notice shall be available for inspection by the Commissioner on request.
(d)
This section does not apply to a real estate transaction involving a mortgage or deed of trust securing an extension of credit made:
(1)
solely to acquire an interest in or to carry on a business or commercial enterprise; or
(2)
to any business or commercial organization.
(a)
A title insurance commitment or sample of the form of policy into which the contingencies and conditions for insuring will be inserted:
(1)
constitutes a statement of the terms and conditions on which a title insurer is willing to issue a policy of title insurance if the title insurer accepts the premium for the policy;
(2)
is not a representation as to the state of title; and
(3)
does not constitute an abstract of title.
(b)
The rights, duties, and responsibilities applicable to the preparation or issuance of an abstract of title do not apply to the issuance of a title insurance commitment or sample of the form of policy into which the contingencies and conditions for insuring will be inserted.
(c)
A title insurance commitment or sample of the form of policy into which the contingencies and conditions for insuring will be inserted shall contain the following statement:
“This document constitutes a statement of the terms and conditions on which a title insurer is willing to issue a policy of title insurance if the title insurer accepts the premium for the policy. It is not a representation as to the state of title and does not constitute an abstract of title.”.
(a)
(1)
In this section the following words have the meanings indicated.
(2)
“Beneficial owner” means a person, other than the buyer in a real estate transaction, for whose benefit a title insurer or its agent is entrusted to hold trust money.
(3)
“Trust money” means a deposit, payment, or other money that a person entrusts to a title insurer or its agent to hold for the benefit of a buyer in a real estate transaction or for a beneficial owner, in connection with an escrow, settlement, closing, or title indemnification.
(b)
A title insurer or its agent shall pool and commingle trust money received from clients or beneficial owners in connection with escrows, settlements, closings, or title indemnifications if, in the judgment of the title insurer or its agent, a separate deposit of the trust money would generate interest in an amount not greater than $50 or the cost of administering a separate account.
(c)
At least quarterly, the financial institution in which a commingled account is maintained under this section shall pay the interest earned on the account, less any service charges of the financial institution, to the Maryland Affordable Housing Trust to enhance the availability of affordable housing throughout the State as provided in § 10–102 of the Housing and Community Development Article.
(d)
Trust money required to be commingled under subsection (b) of this section in connection with a real estate transaction shall be deposited and maintained until disbursed in accordance with the transaction:
(1)
in a financial institution located in the State; or
(2)
subject to approval of the Commissioner of Financial Regulation, in a financial institution outside the State that complies with the requirements of this subtitle.
(e)
A title insurer or its agent does not violate, and may not be charged by the Commissioner with a violation of, any ethical or legal duties by placing trust money in an account under subsection (b) of this section with the interest paid to the Maryland Affordable Housing Trust under subsection (c) of this section.
(f)
Except for trust money that a title insurer or its agent places in a commingled account under subsections (b) and (c) of this section, and subject to regulations of the Commissioner, trust money in the possession of the title insurer or its agent may be deposited in any other deposit or investment vehicle:
(1)
specified by the client or beneficial owner; or
(2)
as agreed on by the client or beneficial owner and the title insurer or its agent.