• The value of title insurance: protection, assurance, facilitation

    Property law; the legal right to possession of property, especially real property; the basis of such right; the documentary evidence of such right title deeds; the heading or a division of a statute, book of law; he heading of a suit or action at law.

      Title & Legal Indemnity insurance has multiple uses

    We show below some examples of the usage of our policies in real estate transactions.

    Elimination of Identified Title Risk

    • Counsel has advised the buyer or lender that there is a specific issue affecting the property title.
    • In the UK, these policies are often referred to as legal indemnities.
    • In CEE countries, counsel may be concerned, for example, about a restitution issue.
    • We can issue these policies throughout Europe.
    • Title insurance eliminates the risk of the identified title issue.

    Facilitation of Property Sales

    • A number of clients, including private equity funds and corporate end-users (such as industrials, and banks) use title insurance to enhance the sale of their properties.
    • Typically, we underwrite the property titles and issue a commitment to the seller, committing to issue the title insurance policy to the buyer at the closing. This makes it easier and faster for prospective buyers to evaluate the property, as they do not have to be concerned about legal due diligence on title.

    Government Privatisation Programmes

    • Title indemnity can replace some property Reps & Warranties removing the need for extensive due dilgence for potential buyers.
    • For a distressed seller, Reps & Warranties from a weak credit is replaced by title indemnity from a financially stronger insurer.
    • Title Indemnity mitigates risk in the transaction.

    Facilitation of Mortgage Financings

    • For the same reasons that clients use title insurance in sales of portfolios of properties, they may use title insurance when arranging mortgage finance on a portfolio of properties.
    • The time and expense of undertaking legal due diligence on the individual property titles and mortgage recordings is replaced by a simple title insurance policy.
    • Title insurance enhances the ability of the mortgage lender to syndicate or securitise its loan.

    Mitigation of Country Risk

    • Some countries may have historically challenging property title issues.
    • Therefore, the investment and credit committees of a number of clients require title insurance for all their property investments and mortgage financings in such countries.
    • While not a political risk policy, title insurance can mitigate the risks inherent in investing in such jurisdictions.

    Policy Types

    Secure Legal Title will create specific covers for specific circumstances. Generically, however, the broad policy types are:

    • Owner’s Policy
    • Loan (Mortgage) Policy
    • Defined Risk Policy
    • Legal Indemnity Policy
    • Mortgage Pool Policy
    • Owner’s Equity Policy
    • Title to shares in SPV