An insured closing letter is issued in connection with real estate closings. The letter may be addressed to any of the parties to the real estate closing (i.e. a seller, purchaser, landlord, tenant, lender or current lienholder). The letter outlines the closing agent’s liability for losses arising from failure of the closing agent to comply with written closing instructions or from fraud, dishonesty or negligence of the closing agent in handling funds or documents in connection with a real estate closing.
When you know that a title company or agent will act as closing agent, you should request an insured closing letter. If the title company or agent will conduct several real estate closings for you, please request a “blanket” insured closing letter which covers all transactions.
In all instances, please review the insured closing letter carefully to determine that your interests are adequately protected.