Services l Title Services l Closing Protection Letter
Added Protection During the Closing Process
A Closing Protection Letter, commonly referred to as a CPL, provides certain protections to a lender or other covered party against specific losses arising from particular acts of a title insurance agent or approved closing professional in connection with the closing of a real estate transaction, subject to the terms and conditions of the letter.
Title & Closing Preparation
Transaction information and applicable closing requirements are coordinated.
CPL Request
A CPL may be requested for an eligible party in connection with the transaction.
Closing & Settlement
Documents, funds, and applicable closing instructions are handled as part of settlement.
Transaction Completion
The closing is completed and applicable title documents and policies proceed through their respective processes.
UNDERSTANDING THE CPL
Protection Connected to the Closing Process
Real estate closings involve the handling of important documents, funds, and instructions. A Closing Protection Letter provides specified protections in connection with certain closing or settlement activities performed by an authorized issuing agent or approved closing professional.
The exact protection provided depends on the terms, conditions, limitations, and applicable form of the CPL.
UNDERSTANDING THE CPL
What Is a Closing Protection Letter?
A Closing Protection Letter is a document issued in connection with a title insurance transaction that provides specified protections to the party named in the letter.
Depending on the applicable CPL form and its terms, the protection may relate to certain losses resulting from failure to follow written closing instructions or certain dishonest conduct involving closing funds or documents.
A CPL is separate from a title insurance policy and serves a different purpose within the transaction.
Title Insurance
Protects against certain covered title risk.
- Ownership matters
- Certain Liens
- Certain title defects
- Covered title claims
Closing Protection Letter
Provides specified protection related to certain closing activities.
- Closing instructions
- Handling of funds
- Documents
- Certain covered conduct
COMMON TITLE ISSUES
Written Closing Instructions
Certain covered failures to follow applicable written closing instructions.
Handling of Funds
Certain covered losses involving the handling of settlement or closing funds.
Closing Documents
Certain covered matters involving documents handled as part of the closing process.
Covered Misconduct
Certain dishonest or fraudulent conduct when covered under the applicable CPL.