As a result of legislation, all parties of sales transactions are now required to receive a Closing Protection Letter (CPL) where a title insurance policy is being issued (which is always!).
This legislation took effect on August 29, 2016. So, what does that mean to you and your clients?
1) Buyers and Seller can continue to select their own title company for closing.
2) Sellers are no longer allowed to waive the CPL for closing.
3) When ITC is closing for the Seller only:
- ITC will obtain a CPL for the Seller from the Buyer’s title company.
- ITC will follow the Buyer’s title company instructions for funding.
- The Seller’s proceeds will be paid to the Seller from the Buyer’s title company. To simplify this for your Seller, we suggest that the Seller chooses to have their proceeds wired to their bank account.
4) When ITC is closing for the Buyer only:
- ITC will issue the CPL for the Seller and send it to the Seller’s title company.
- ITC will disburse the Seller’s proceeds.
5) When the Buyer and Seller are both closing with ITC there will be no changes in the current closing procedures.
Investors Title Company is always happy to be of service to you and your clients. Please contact us if you have any questions.
This article is from our October newsletter. If you would like to receive our monthly newsletter delivered directly to your inbox each month, be sure to subscribe. It’s easy to sign up! Find the subscription box at the bottom of the page.