A mortgage is only as good as the property which secures it.
If title to that property is uncertain, or if there are liens or charges on the property, the security of the mortgage is impaired. Even where the property title is clear, there may be risks arising out of planning permission, zoning, building permits or occupancy permits.
Title Insurance covers those legal risks to protect the lender’s security. Indeed, in many markets, it is the mortgage lenders who drive demand for title insurance.
Title Insurance also can protect lenders to infrastructure, energy and alternative energy projects, where the risks may be even more complex.
In Europe, it has become customary for lenders to require that they be named as first loss payees in Title Insurance policies issued to property buyers and developers. This assignment of policy proceeds protects to the lender in the event of claims against the mortgaged property.
However, in other regions, notably in the United States, lenders require their own, separate policies, where they are the named insured and their rights are not derivative.
Secure Legal Title provides both loss payee assignments on owner’s policies and direct lender policies, and we are able to structure bespoke policies to meet the specific requirements of owners and lenders in complex transactions.
Contact us for more information on how we can customize a product around your needs and discuss any questions or concerns that you might have surrounding your transaction.