The new American Land Title Association (ALTA) Closing Protection Letter (CPL) form recently took effect in Florida.
The new form both streamlines the previous CPL’s language and addresses and corrects many of the problems created by recent bad case law. It brings the CPL into line with longstanding understandings of CPL’s purpose and scope within the title insurance industry.
The clear and laudable aim of this new form is to create a better relationship among the contracting parties with clearer language and more sensible limitations on liability. This article summarizes revisions, with particular focus on those areas that address case law that led us astray.
In the title industry, a power of attorney (“POA”) is used when one of the parties to the transaction cannot be physically present at the closing. Transactions involving a power of attorney are ripe for fraud and errors.
The following checklist can be used to determine whether or not to proceed with insuring a real property transaction involving a POA:
Often, sale and refinance transactions necessitate the payoff and satisfaction of revolving lines of credit, also known as home equity lines of credit (“HELOC”).
These mortgages are loans secured by the debtor’s real property which generally allow the borrower to access the equity in their property utilizing credit devices including checks, ATM cards and credit cards.
The ease by which these accounts may be accessed, drawing up the outstanding principal balance right before, or after, the closing, may leave the agent and underwriter vulnerable to claims.
The recommended practice concerning satisfying HELOCs, and insuring without exception, are as follows:
LONGMONT, Colo. – Alliant National Title Insurance Company is encouraging its title agents impacted by hurricanes Harvey and Irma to apply for financial relief through the Alliant National Title Helping Hands Fund.
“We are praying for everyone impacted by these recent catastrophes and want to help in any way we can,” Bob Grubb, Alliant National Title Insurance Company president and CEO said. “Our people have been in touch with many title agents who’ve been directly impacted by the storm, asking how we can be helpful to them, their employees and their communities at this time – whether that’s sending support staff to their offices, delivering water or even a simple sandwich platter – we are trying to help with anything they might need.”
The fund is a charity vehicle created through a partnership with the Greater Houston Community Foundation. Through GHCF, a full 95 percent of donations will go directly to those who meet the criteria for assistance.
Assistance will help cover costs and expenses not already covered by insurance or other means of damage recoupment, Grubb said.
Alliant National’s title agents and their employees – as well as its own employees – are eligible to apply for relief if living in or operating their business in a county declared a federal disaster area due to Harvey or Irma.
The Helping Hands Fund was set up in the wake of Hurricane Harvey by a team of Alliant National employees led by Rodney Anderson, Senior Vice President and Southwestern Regional Agency Manager.
The scope of relief efforts were extended to include Florida as Hurricane Irma churned in the Atlantic Ocean, with its eye set on the panhandle.
“It is an honor to be a part of an organization that operates with such heart and compassion,” Anderson said. “We hope that these efforts as well as the donations collected through our Alliant National Title Helping Hands Fund are able to provide some relief during this difficult time.”
In addition, Alliant National donated to Samaritan’s Purse’s Hurricane Harvey Relief Fund and Global Giving Foundation’s Hurricane Irma Relief Fund.
Samaritan’s Purse helps to meet the “needs of people who are victims of war, poverty, natural disasters, disease, and famine,” according to its website, while the Global Giving Foundation’s Irma Fund, will provide relief to survivors, “in the form of emergency supplies like food, water, and medicine in addition to longer-term recovery assistance to help residents recover and rebuild,” according to its website.
“When agents are in need of assistance from such deadly, natural disasters it is a privilege to create a formal giving platform that can truly make an impact for those responsible for our success,” Anderson said.
Alliant National has been named a top Colorado-based real estate company.
Watch Alliant National President & CEO Bob Grubb speak about a “crazy idea” to start a new title insurer from scratch in 2005.
Though the US economy stalled during the recession of 2008, Alliant National continued to grow as the rest of the industry shrunk by 45 percent.
“We realized our business model was gaining traction and had value,” Grubb said.
This blog contains general information only, not intended to be relied upon as, nor a substitute for, specific professional advice. We accept no responsibility for loss occasioned to any purpose acting on or refraining from action as a result of any material on this blog.
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