FREQUENTLY ASKED QUESTIONS

Why buy Title Insurance in addition to a legal opinion?
Lawyers provide an opinion—title insurance adds a financial guarantee. A legal opinion, especially in a large commercial transaction, may disclose specific risks and exclude fraud, both of which could be covered by title insurance.

Does title insurance change the role of lawyers and notaries?
Their role remains unchanged. We underwrite policies based on the property title due diligence and legal opinions provided by lawyers or notaries in each country. Title insurance can, in fact, be valuable for legal professionals since it:

• Allows deals to move forward that might otherwise be considered too risky

• Effectively transfers risk from lawyers and notaries to the title insurance company, thus making it responsible for defending against title and mortgage claims.

Does Title Insurance cover acquisitions of real estate companies or Limited Partnerships?
Yes. Here the role of Title Insurance is even more critical since acquisitions of shares in real estate companies, or interest in Limited Partnerships, are usually not subject to a contract by a notary or a new entry in a land registry. Therefore, new shareholders, or Limited Partners and their lenders, may not be fully protected by older documents. It is always possible, and relatively easy, to obtain an update of a title policy that provides full coverage as of the date of the new transaction.

How can title insurance facilitate the sale of distressed mortgage debt and property?
Occasionally, a bank or distressed borrower is unable to extend reliance on previous due diligence, or even provide solid representations and warranties because of insolvency risks. Title insurance can provide a financial guarantee of title, which is critical to both the distressed seller and investor. Such a guarantee can speed the transaction, while reducing risk.