Title Policy Endorsements

Checklist Title Insurance

    What follows is an examination of some but not all issues of title insurance that you might encounter in a loan transaction, and procedures that may be considered in the treatment of insurance coverage or treatment under general and closing of loan transactions. This is only an enhancement of certain actions, and may not be exhaustive.

In all reports related to title insurance / stocks, keep in mind that there are two distinct markets in existence in each loan transaction insured: (This does not include a third contract with the agent escrow.)

• The contract between the lender and the borrower
• The contract between the insurer (as Co) and the insured (the lender)

There is often a tendency to take out a loan with the thought that you have received and reviewed a preliminary report, where appropriate, addressed all the dubious elements of the report, and that your primary concern remains with regard to insurance securities is that the policy is actually being obtained at closing.

Knowing that title insurers may attempt to deny coverage, there are a number of measures that can be taken to improve your chances of getting coverage. Some apparently normal actions or omissions by a loan originator may not have a significant impact on the ability of the insurer to "wiggle to provide coverage."

When originating new loans

1) Develop your loan application to include an additive property, "which may include, among others:

• a clear description of the property, including a description of the improvements (such as a 10 unit building consisting of five two-bedroom units and five one-bedroom units, located at 123 Elm Street, Los Angeles, CA.) offered collateral, including the full address (get the reference under the policy, including the full description, if possible.) (116 CLTA endorsement)
• full legal description, and that document or information the borrower invoked to provide this information
• parcel number to the assessor of property tax

Have the borrower (s) separately sign and date this description.

2) Add an addendum to your application, when the borrower

on a specific project, the written statement as to who is on the track and in the case of an entity that holds title, who are the authorized signatories for this entity.

3) Watch 3A of the day, "the objects created, etc., by the insured"

4) Watch 3B of the day, "Articles neither known to the insurer,

recorded in public records but known to the insured "

5) Get good riders.

6) adequate payment of loan. Parties to

lending operation still have compelling reasons for the disbursement of loan proceeds to someone other than the holder of title or lien holders. It leaves you open to a multitude of cover title (and other) problems.

Construction loans 7) (or a loan for that matter) make sure

no work has begun with the policy of title is issued.

Request real "Seattle statement" For the construction loans.

Look for words, "the insurer will not raise the fact that

insured undisbursed loan funds, as a defense against a claim, as opposed to a label that says "insurer does not the fact that the lender undisbursed loan funds, provided that these funds will be donated to the title insurer. "

8) permanent loans (NPL-construction): How do you

that no construction has begun and no mater-

IALS were delivered to the site, and that the loan pro-

Ceed are not, without your knowledge, is the construction?

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