(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.
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