•   3. In Europe

    a. Why are Europeans buying title insurance?

    For cross-border transactions, title insurance eliminates the burden—and reduces the risks—of coordinating the multitude of national ownership protection rules (e.g. Grundbuch in Germany, Cadastre in France and Land Registry in the UK).

    Transactions are, therefore, safer and easier, particularly important in light of the rising volume of indirect real estate transactions through corporations, funds or limited partnerships.

    b. Is title insurance only for investors or can it also help sellers?

    In many instances, a title policy can replace sellers’ representations and warranties relating to title:

    • If the seller is a public company, it avoids carrying contingent liabilities and explanatory footnotes.
    • In the case of distressed sales, buyers may not want to rely on sellers’ reps and warranties and may require a price reduction or cash collateral to back them up. A title policy satisfies the needs of both parties by covering those risks.

    c. Can title insurance play a role in loan syndication or in the sale of entire loan portfolios by banks?

    While there are efforts to "harmonise" public market rules within the European Union, it will take decades to move forward. Title insurance already enhances efficiency and liquidity of mortgage markets by:

    • Assuring investors that the borrower owns the property and guaranteeing the priority and enforceability of the lien of the insured mortgage.
    • Standardising legal due diligence across different laws, regulations and languages, especially critical in multi-country transactions.
    • Providing investors with safety and common standards for legal due diligence and thus helping fulfill their fiduciary requirements.

    d. What law applies to the policy?

    Policies will be subject to English law or local law as required by the insured.

    e. In what currency are the amounts insured?

    Policies can be issued in Euros or in Pounds Sterling

    f. Where in Europe can title insurance be used?

    Secure Legal Title provides legal indemnity and title insurance for commercial properties in the UK and throughout Europe.

    Our underwriters have extensive experience in property transactions in Bulgaria, the Czech Republic, Denmark, France, Germany, Hungary, Ireland, Italy, Luxembourg, the Netherlands, Poland, Romania, Slovakia, Slovenia, Spain, and the UK.