Bill > H1357

This bill allows title insurance companies to issue closing protection letters, which are guarantees to protect a buyer or lender from financial loss due to title defects or fraud during a real estate transaction, even before a final title insurance policy is issued. Specifically, it permits these letters to be issued when a preliminary report (an initial assessment of title status), a binder (a temporary commitment to insure), or a title insurance policy is provided. The bill mandates that these closing protection letters must be issued for loan policies insuring lenders on residential properties with four or fewer units, and will cost a flat fee of $50 per transaction, with the form of the letter to be adopted from the American Land Title Association, and this fee cannot be shared with others.