§14.12 - The Closing

• Jurisdiction: Washington

§14.12 THE CLOSING

The proposed insured will need to know that once the transaction closes a policy will be issued in accordance with its expectations. The best way to handle this is to send the documents for recording to the title company upon express written instructions to record only when the company is in a position to insure title in a manner satisfactory to the proposed insured. This will usually serve to commit the insurer if it proceeds, as it has the option to decline to record.

A pro forma (or specimen or sample) policy is often prepared prior to closing, especially for commercial transactions, allowing the final form of the policy to be worked out. Closing instructions would then permit recording only when the insurer is in a position to write the policy in that form.

Practice Tip: When reading a commitment prior to closing, pay special attention to the following

(1)Proposed insured, type of policy, and amounts. If not complete, the commitment may not be effective. Changes should be immediately...