Title Commitment; Insured Closing Letter Sample Clauses
The "Title Commitment; Insured Closing Letter" clause requires the seller or another party to provide the buyer with a title commitment and an insured closing letter from a title insurance company. The title commitment outlines the conditions under which the title insurer will issue a title insurance policy, while the insured closing letter protects the parties against certain losses caused by the closing agent. This clause ensures that the buyer receives assurance regarding the status of the property title and protection against potential errors or fraud during the closing process, thereby reducing risk and promoting a secure transaction.
Title Commitment; Insured Closing Letter. A commitment (the "Title Commitment") for mortgagee policy of title insurance (the "Title Policy") issued by the Title Agent, as agent for the Title Company in favor of the Lender showing a policy amount equal to the aggregate amount of the Loan, insuring that the Lender has a valid first lien against the Land, subject to exceptions, if any, acceptable to the Lender. The exception regarding restrictive covenants shall be deleted or shall list such restrictive covenants and insure that they will not affect the validity or priority of the Lender's Lien. To the extent available based on the existing surveys, the standard pre-printed exception regarding any discrepancies, conflicts or shortages in area or boundary lines shall be modified to read only "shortages in area." The standard pre-printed exception regarding taxes shall be modified to read "Standby fees and taxes for the year 1998 and subsequent years not yet due and payable." The Title Policy shall contain the standard pre-printed "pending completion" and "pending disbursements" exceptions and the Borrower shall, at the Borrower's cost and expense, obtain endorsements to the Title Policy as advances are made so that the coverage reflects the amounts that have been advanced under the terms of the Loan Documents. The Title Policy shall also insure access to the Project from a public street. The Title Company shall execute and deliver to the Lender an insured closing letter covering the Title Agent;