What type of policy does an owner receive in a real estate transaction?

In a real estate transaction, the owner receives an owner's policy, which provides coverage for the property owner. This policy protects the owner's investment by insuring against potential losses due to title defects or issues that may arise after the purchase. It typically covers events like undisclosed liens, fraud, or mistakes in the public records that could affect the ownership rights.

An owner's policy is crucial because it ensures the owner has legal ownership of the property without any hidden risks. This policy remains in effect for as long as the owner or their heirs hold an interest in the property, giving peace of mind that their investment is protected against past occurrences that could threaten their title.

The other options address different types of policies. A mortgagee policy, for instance, is designed to protect the lender's interest in the property, but it does not protect the homeowner. Servient and commitment policies are not standard terminology in the context of title insurance, which further emphasizes that the correct policy type for an owner in a real estate transaction is indeed the owner's policy.