Legal Question in Real Estate Law in California

I think you are very confused about title insurance. First off, there is no such thing as a "Borrower's" title insurance policy. There are CLTA and ALTA Lenders policies and CLTA and ALTA Owners policies, but no "Borrowers" policy. I have also never heard of a lender taking out a post-closing title insurance policy. That would make no sense with how the policies work. When you buy land with a loan through a normal title company escrow, you receive an owners title insurance policy that you pay for. The lender has nothing to do with it, and you have no reason to take out any further title insurance unless there is some change in the ownership or form of ownership that requires a new title report and policy. The lender at that time takes out their own Lender's policy. As a rule you are billed for the cost of that policy per the loan documents, but the insured is the lender, not you. That policy covers the security for the debt, invariably a deed of trust in California, and it is transferable automatically to each successive owner of the debt if the loan is sold or otherwise transferred to a new lender. So there is no reason to ever take out another policy on the loan either. The only time there would be a new loan policy without a change of ownership of the property would be if the loan is paid off in a refinance and then the new loan would need new insurance, or if a new junior loan, such as a HELOC, is made. The policy on the new loan is issued at closing of the loan transaction. It is not a post closing policy. Lastly, it is black letter California law that there is NO third party beneficiary status conferred to anyone in a title insurance policy on California property. Period. And just FYI, I was a Vice President and Associate General Counsel for Fidelity National Financial for the better part of a decade. FNF is the parent company of Chicago Title, Fidelity National Title Ins. Co., Alamo Title, Ticor Title and a slew of other title and real estate insurance and services companies.