Tenn. Comp. R. & Regs. 0780-01-12-.10
All title insurance companies issuing mortgagee's title insurance upon a loan made simultaneously with the purchase of all or part of the real estate securing such loans, where no owner's title insurance policy has been ordered, shall, prior to the disbursement of the loan funds or the issuance of the mortgagee's title policy, cause the mortgagor to be advised in writing of the fact that a mortgagee's title insurance policy is to be issued, of the fact that such policy does not afford title insurance protection to the mortgagor, and of the mortgagor's right to obtain title insurance in his own favor; and if the mortgagor elects not to purchase owner's title insurance the company shall obtain from him a statement in writing that he has received such notice and that he waives his right to purchase owner's title insurance. The form of the written notice and waiver shall be as follows:
NOTICE OF WAIVER
Department of Commerce and Insurance
State of Tennessee
..........................
RE:
(address or brief property description)
Pursuant to the Regulations of the Department of Commerce and Insurance of the State of Tennessee, notice is hereby given that a mortgagee's title insurance policy is to be issued to your mortgage lender, that such policy does not afford title insurance protection to you in the event of a defect or claim of defect in title to the real estate which you are acquiring (such as unpaid bills for labor and material, forgery, missing heirs or tax liens), and that an owner's title insurance policy in your favor for the amount of your purchase price (or for the amount of your purchase price plus the cost of any improvements which you anticipate making) may be purchased.
Departmental Regulations require that you sign the statement below if you do not wish to purchase this protection.
____________________
Name of Company Issuing Policy
This is to certify that we have received the foregoing notice and waive our right to purchase an owner's title insurance policy for our protection. We acknowledge that (insert name of company) shall have no responsibility to us for the status of the title to the real estate we are acquiring.
____________________
Signature of Mortgagors
Tenn. Comp. R. & Regs. 0780-01-12-.10
Authority: T.C.A. §§ 56-35-111 and 56-35-122.