Two title agents, an underwriting attorney and a real estate agent had a chat yesterday concerning insurable title.
Back in 2004 we issued an owner policy - insuring over an unsatisfied mortgage. We had discovered the mortgage and requested a release. It was a hefty developer's line of credit. We were offered indemnification and accepted it.
Our insured owner is now selling his property and the buyer's title agent had a big freak out over the unsatisfied mortgage and had the real estate office contact me. I looked at the file, noticed that our underwriter at the time is now a part of the underwriter who had issued the indemnification and figured there was a good chance that the new insurance was being written under the same company. I faxed over the indemnification letter.
The response was that they are writing through a different underwriter who will NOT accept indemnification, so I requested a copy of their title commitment.
I emailed the title commitment, the indemnification letter, and the owner policy to the underwriting attorney who had issued the indemnity in 2004. She responded that they would issue a new indemnification or would offer to insure the buyer through any of their companies.
The real estate agent responded with a question:
"Your indemnification will only be for the current owner’s policy amount, which was $110,000.00, correct?"
The underwriting attorney responded:
"Yes, that is correct. Your proposed commitment indicates that you will be insuring for $108,500.00 so I’m not understanding why your underwriter will not accept an indemnity letter."
The real estate agent responded:
"They might be okay but the buyer might have a concern. I’ll let you know. Thank you."
I responded:
"I'm sure your buyer has a copy of their sales contract. The definition of marketable title being granted by the seller in the PAR contract is premised on insurability by a reputable title company at regular rates. You have that so I am hopeful this closing will move forward."
Back in 2004 we issued an owner policy - insuring over an unsatisfied mortgage. We had discovered the mortgage and requested a release. It was a hefty developer's line of credit. We were offered indemnification and accepted it.
Our insured owner is now selling his property and the buyer's title agent had a big freak out over the unsatisfied mortgage and had the real estate office contact me. I looked at the file, noticed that our underwriter at the time is now a part of the underwriter who had issued the indemnification and figured there was a good chance that the new insurance was being written under the same company. I faxed over the indemnification letter.
The response was that they are writing through a different underwriter who will NOT accept indemnification, so I requested a copy of their title commitment.
I emailed the title commitment, the indemnification letter, and the owner policy to the underwriting attorney who had issued the indemnity in 2004. She responded that they would issue a new indemnification or would offer to insure the buyer through any of their companies.
The real estate agent responded with a question:
"Your indemnification will only be for the current owner’s policy amount, which was $110,000.00, correct?"
The underwriting attorney responded:
"Yes, that is correct. Your proposed commitment indicates that you will be insuring for $108,500.00 so I’m not understanding why your underwriter will not accept an indemnity letter."
The real estate agent responded:
"They might be okay but the buyer might have a concern. I’ll let you know. Thank you."
I responded:
"I'm sure your buyer has a copy of their sales contract. The definition of marketable title being granted by the seller in the PAR contract is premised on insurability by a reputable title company at regular rates. You have that so I am hopeful this closing will move forward."
No comments:
Post a Comment