LA Closing Protection Coverage

 STEWART TITLE GUARANTY COMPANY

 

THIS FORM MAY NOT BE REPRODUCED WITHOUT APPROVAL FROM STEWART TITLE GUARANTY UNDERWRITING PERSONNEL.

Date:

Name and Address of Addressee:

RE: Closing Protection Coverage 

Agent:

 

Dear Sir or Madam:

When title insurance of Stewart Title Guaranty Company (the "Company") is specified for your protection in connection with the referenced closing related to a Louisiana real estate transaction in which you are to be the lessee or purchaser of an interest in land or a lender secured by a mortgage (including any other security instrument of an interest in land in accordance with Louisiana Revised Statute Title 22 Section 2092.5 C. (1), the Company subject to the Conditions and Exclusions set forth below, hereby agrees to indemnify you for actual loss incurred by you in connection with such closing when conducted by the Approved Closer  named above when such loss arises out of:

1. Failure of the Approved Closer to comply with your written closing instructions to the extent that they relate to (a) the status of the title to said interest in land or the validity, enforceability and priority of the lien of said mortgage on said interest in land, including the obtaining of documents and the disbursements of funds necessary to establish such status of title or lien, or (b) the obtaining of any other document, specifically required by you, but only to the extent the failure to obtain such other document affects the status of the title to said interest in land or the validity, enforceability and priority of the lien of said mortgage on said interest in land, or

2. Fraud or dishonesty of the Approved Closer in handling your funds or documents in connection with the referenced closing to the extent such fraud or dishonesty relates to the status of the title to said interest in land or to the validity enforceability and priority of the lien of said mortgage on said interest in land.

If you are a lender protected under the foregoing paragraph, your borrower in connection with a loan secured by a mortgage on a one-to-four family dwelling shall be protected as if this letter was addressed to your borrower.

 

CONDITIONS AND EXCLUSIONS

A. The Company will not be liable to you for loss arising out of:

1. Failure of the Approved Closer to comply with your closing instructions, which require title insurance protection inconsistent with that set forth in the title insurance binder or commitment issued by the Company.  Instructions that require the removal of specific exceptions to title or compliance with the requirements contained in said binder or commitment shall not be deemed to inconsistent.  This paragraph shall not be applicable when a commitment, binder or preliminary report has not been requested by you prior to the closing.

2. Loss or impairment of your funds in the course of collection or while on deposit with a bank due to bank failure, insolvency or suspension, except such as shall result from failure of the Approved Closer to comply with your written closing instructions to deposit the funds in a bank which you designated by name.

3. Mechanics' and materialmen's liens in connection with your purchase or lease or construction loan transactions, except to the extent that a title insurance binder, commitment or policy of the Company affords protection against such liens.  

4. Failure of the settlement agent, named employee of the Company or title insurance agent of the Company to comply with your written closing instructions to the extent such instructions require a determination by the settlement agent, named employee of the Company or title insurance agent of the Company of the validity, enforceability or effective of any document contemplated under paragraph 1(b) above.

B. When the Company shall have indemnified you pursuant to the coverage contained in this letter, it shall be subrogated to all rights and remedies, which you would have had against any person or property, had you not been so indemnified.  Liability of the Company for such indemnification shall be reduced to the extent that you have knowingly and voluntarily impaired the value of such subrogation.

C. Any liability of the Company for loss incurred by you in connection with closing of the real estate transaction by the Approved Closer shall be limited to the protection provided by this letter.  However, this letter shall not affect the protection afforded by a title insurance binder, commitment or other policy of the Company.

D. Claims shall be made promptly to the Company at P.O. Box 2029 , Houston , TX 77252 .  When the failure to give prompt notice shall prejudice the Company, then liability of the Company hereunder shall be reduced to the extent of such prejudice.  The Company shall not be liable hereunder unless the Company receives notice of claim in writing within one year from the date of the Closing.

E. The protection herein offered extends only to the above-referenced real property transactions.

 

STEWART TITLE GUARANTY COMPANY

 

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