ALTA’s Best Practices Pillar #5 requires title agencies to complete and submit final policies to the underwriter within 45 days after the close of the transaction. Many title agencies are actively considering options to meet this best practices requirement.

In general, once a transaction has closed, the process goes something like this…

·         A title agent receives word that the sale/refi has concluded and is provided copies of the recorded documents (deed, mortgage, etc.).

·         The title agent retrieves the title commitment associated with the transaction and confirms that any and all requirements have been met.

·         The commitment is then updated with a “datedown,” wherein the public records are checked for any documents that may have recorded against the property or persons between the time the commitment was prepared and the date the transaction closed.

·         Assuming everything checks out, the commitment is revised to reflect the new owners, new encumbrances and to remove any particular items that were associated with the prior owners or addressed prior to closing.

·         The revised commitment essentially becomes the “meat” of the title policy and once the policy number is assigned, it can be passed along to the insured.

In addition, there may be several follow-up items associated with the title policy…

·         Contacting lenders to follow up on any releases or assignments pertaining to a prior mortgage/deed of trust.

·         If it’s a construction loan, there may be follow up datedowns for subsequent draws and endorsements.

As we mentioned in our previous blog covering title policies, once the transaction closes, many a mind shifts to new transactions and new clients. Where does that leave us? Often times with a big backlog of policies that need to go out.

At HDEP, we have the experience to assist in every step of the policy preparation process mentioned above, including periodic checking for lender release documents and policy datedowns when construction draws occur. We can prepare the datedowns, type the policies and prepare them in your format of choice, accurately and quickly.

If you would like to discuss how HDEP can help with your policy preparation, please give us a call.