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Emergency Gap Coverage Three Center Plaza, Boston MA 02108 Tel: 800-370-6466 Fax: 617-742-5000
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Click here to download an Adobe Acrobat pdf version OLD
REPUBLIC TITLE EMERGENCY GAP COVERAGE (This
authorization expires January 31, 2003) In the beginning of this year due to the severe problems associated with recordings at the Middlesex South Registry of Deeds, Old Republic Title agreed to provide so-called “gap coverage” for refinance transactions on a limited basis. Unfortunately, these problems have resurfaced at Middlesex South. We are therefore offering this coverage again as a temporary measure to address this situation. It is not intended as a permanent change in our practice guidelines. You are authorized to provide title insurance coverage to the lender as of the time and date of disbursement of the loan proceeds prior to actual recording of the loan documents, subject to the following requirements: - This authorization applies to refinance transactions of 1-4 family residential properties only. - A Gap Indemnity Agreement in the form attached must be executed by the borrower/owner. A copy of the Gap Indemnity Agreement can be downloaded from our website (ORTBoston.com). - Title to the property must be run up to no less than one business day prior to disbursement of the loan proceeds. - The recording must be done as soon as possible after disbursement of the funds. - Please attach a copy of the Gap Indemnity Agreement to the copy of the policy remitted to Old Republic Title. - Any intervening matter discovered in your final rundown and recording are to be promptly reported to Old Republic Title. You should proceed with recording the mortgage notwithstanding any intervening matter and such matters are not to be added to the policy. Old Republic Title makes no representation that disbursement prior to recording is acceptable under current attorney practice standards. Any risk that this practice constitutes attorney negligence is not covered under title insurance and is a matter between the agent, the client and the agent’s liability carrier. For the protection of all, we recommend that you use this authorization only when absolutely necessary. We strongly suggest that you use the three day rescission period to record mortgages so that the mortgages are of record prior to disbursement. This authorization expires on January 31, 2003. We will consider extending this authorization only if the situation in the Registries of Deeds has not improved sufficiently by this date. Any such extension must be in writing. GAP
INSURANCE INDEMNITY AGREEMENT TO:
Old Republic National Title
Insurance Company FROM:
_______________________________________________________ DATE:
_______________________________________________________ INSURED
PROPERTY ADDRESS: ___________________________________________________________________ OLD
REPUBLIC NATIONAL TITLE INSURANCE COMPANY (hereinafter referred to as
"Old Republic") has been requested to issue Owner/Loan/Leasehold
policies of title insurance for the above-referenced property. Said insurance coverage is to be effective as of the time of
disbursement of funds following the execution of the various closing documents,
which create the estate or interest to be insured. Old Republic is being asked to insure the gap period between
the date of the last rundown of title and the recording of the instruments,
which create the insured interests. In
consideration of such coverage and in order to induce Old Republic to provide
such insurance, we, the undersigned hereby agree to indemnify Old Republic for
any and all loss, cost or damage, including attorney's fees, resulting from any
defects, liens, encumbrances, or adverse matters created, arising, or
discovered, between the period of the last title search and the time at which
the documents creating the insured interests are recorded with the land records
for the property. This
document is executed as a sealed instrument and is intended to be construed in
accordance with the laws of the Commonwealth of Massachusetts. Executed
this ________ day of ___________________, 200_.
By _____________________________
_____________________________ |
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Old Republic Title Insurance Group |
