There are two aspects to Pillar #5, one relates to you and one relates to us. Much as we discussed last month as it relates to you developing written policies and procedures for conducting your closings, we have to do the same as it relates to the production of the actual policy. This particular aspect of Pillar #5 is not really relevant to you. (Remember that in the vast majority of States, the closing agent is also the title agent.) The purpose behind Pillar #5 is to insure the timely delivery of the title policy. To that end, it is incumbent upon you to establish appropriate procedures for the delivery of final title opinions, related documents and premiums to the title insurer so that you meet your legal and contractual obligations under the lender’s written closing instructions. To that end, Pillar #5 requires that you adopt and maintain written procedures related to submitting final title opinion, documents and premium to title insurer in order to obtain timely issuance of title insurance policies post-closing. The rest will be up to us.
ALTA’s Best Practices call for a delivery of the title product (particular to the lenders) within 30 days of closing. Note that doesn’t mean that we have 30 days to issue the policy once you submit your final opinion, premium and related documents. That means 30 days from the date of closing. That’s a tall order folks. . .and we are going to have to work together to meet that standard. We will need as much time as possible to turn our policies around. Understand that we are looking at the closing date on your final opinion and determining our priorities based on the closing date and not the date we actually receive the final opinion and related documents.
Visit the Best Practices Task Force Website for Sample Templates of procedures, as well as Sample Checklists.
Best Practices Task Force