July 20, 2024


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International Title Insurance Company: Our Top 6 Most FAQs

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International Title Insurance

Title insurance is emerging as a quick, efficient, and cost-effective method for addressing the growing demand from investors around the world, rating agencies, and auditors for greater transparency, guarantees, and security in land transactions.

Today we’re sharing our top 6 most FAQs we get at our international title insurance company.

1. What is covered by international title insurance? Loss arising from:

  • Liens, encumbrances on the title to the land;
  • Defects to the title to the land such as fraud, forgery, and errors in recording;
  • No legal right of access to the land;
  • Zoning and permitting issues (with additional endorsement);
  • Invalidity or unenforceability of mortgages or other instruments that create a security interest on land;
  • Adverse Possession
  • Processes to formalize title to land.

2. What is not covered by title insurance? Title insurance does not cover losses that are triggered by events that occur after the policy date, such as future administrative decisions regarding zoning or permits. It also excludes pending litigation and consequential damages, e.g., business disruption or loss of future profits.

3. Why hire an international title insurance company in addition to a legal opinion? Lawyers provide an opinion while title insurance provides true financial indemnification over a potential title loss. Furthermore, cases of fraud, forgery, boundary line disputes, hidden defects, etc. are covered by title insurance, but not by lawyers or notaries.

4. Does title insurance also cover indirect property investments, e.g., acquisitions of real estate companies or investments in Limited Partnerships? Yes. Here, the role of the international title insurance company may be even more critical, since acquisitions of shares in real estate companies, or interests 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.

5. Can an international title insurance company also be useful to property sellers? Yes. Sale and purchase agreements typically include representations and warranties by the seller relating to a number of issues, including the title. Sellers can replace these with title insurance and eliminate contingent liabilities, the need for cash collateral, and post-closing challenges.

6. Why are investors and lenders hiring an international title insurance company outside the U.S.? For cross-border transactions, title insurance eliminates the burden and reduces the risks of co-coordinating the multitude of national ownership protection rules. Transactions are therefore safer, easier and more transparent, which is particularly important in light of the rising volume of indirect real estate transactions through corporations, funds or Limited Partnerships.

Need more information from specialists at an international title insurance company?  Call our office today – we are experts in this field.

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