Closing Protection Letter Arizona. If you do not have access, please click the first time users register here link. A closing protection letter or cpl is offered before closing to protect lenders against unauthorized actions by settlement agents or failure to comply with the terms of the lender’s closing instructions.
They wanted the same type of financial backing that a title policy provides. Historically, the protection liability fell to the closing agent, but if a title company went out of business or became corrupt, the parties to the transaction wanted additional protection for their funds. The intent is to guarantee that a title agent acting on behalf of the insurer will handle a lender's funds and documents properly.
What is closing protection coverage?
The approved attorney often also attends the closing, and may be hired as the loan closer. Arizona real estate title law: Title resources guaranty company is pleased to offer you the insured closing letter/closing protection letter (icl web) and policy request online supply (pros) system. A real property escrow agent that is a title insurance agent shall disclose to the buyer and seller of a residential dwelling that the title insurer shall offer on request a closing protection letter that provides protection for the loss of escrow monies due to fraud or dishonesty of the escrow agent.