Title Insurance for Residential & Commercial Remortgages
The Conveyancing Indemnity Policy is issued as a block policy to a lender and provides cover for that lender and any successor to its title in the mortgage. Stewart will assume responsibility for dealing with any claims made under the policy and the financial losses to the lender which flow from the defects covered under the policy.
The CIP can cover advances and further advances for registered and unregistered titles.
Title insurance requires the minimum of title investigation before cover is available, thus ensuring that a lender can complete a remortgage in a matter of days rather than weeks. An example of the title investigation procedure is also set out below and can be used by the Lender's external legal advisors or by the Lender's own in-house team.
The following conveyancing searches are covered within the policy and so do not have to be carried out:
- Local Search
- Commons Registration Search
- Coal Mining Search
- Cheshire Brine Search
- Limestone Extraction Search
- Railways Search
Title Investigation Procedures
In the case of all titles registered at H M Land Registry, freehold and leasehold, the title investigation is carried out without the need for the title deeds by merely checking the Register either via Direct Access, or by obtaining Office Copy Entries. The only matters checked are:
- The borrower is the Registered Proprietor.
- The property address is the same as on the Mortgage Offer.
- The existing charges registered are those as disclosed by the borrower in his application.
- There are no obvious defects with regard to the title, for example, the title is registered other than with Absolute or Good Leasehold title.
- Pre-completion searches are clear.
- The Mortgage Deed is signed by the Borrower and witnessed.
- The application is submitted to HM Land Registry within the search priority period.
Although the title deeds have to be obtained, the only investigation required is:
That on its face the title has a good root of 15 years; has a complete chain of owners names from the root of title, and that against those names there are no adverse entries in any searches of HM Land Charges Register. In addition, the Deeds must show an adequate description of the property and purport to transfer a fee simple. A clear Index Map Search will need to be obtained. Otherwise the investigation proceeds as above.
Any matter not investigated within the above-mentioned procedures is covered within the policy itself. In addition, the policy also guarantees the lender a first legal charge (if required) and provides cover for any negligence on the Solicitor's part in failing to adhere to the procedures.
We can supply details of a panel of Solicitors who are using Title Insurance in this way and who have access to computer software.
Title Insurance for Commercial Purchases (Lender-Only Cover)
Many commercial lenders require their own lawyers (not the borrower's lawyer) to undertake a full investigation of title notwithstanding that such an investigation has been, or is being, carried out by the borrower's lawyer. Our policy enables a commercial lender to rely on a borrower's lawyer's certification of title.
We realise that different Lenders have different needs, and we are pleased to be able to offer policies which are tailor-made to the needs of the particular Lender client. Cover for certain specific defects can be endorsed onto the basic CIP cover.