No matter how long you’ve been in the business or how new you are to the industry, the risks that you face every day, from paying off inflated closing costs to not meeting client expectations, make it a prime target for lawsuits. Even if all claims are dismissed, fees for defense and time lost from your business can add up to a costly situation. Real estate agents could risk their financial and professional futures if they don’t have the right coverage.
It is also the responsibility of the title industry to protect the client’s funds and escrow by providing a way for secure transfer of their real property in the industry. The agent is responsible for any damages or errors that occur during the transaction.
Title Agents Errors and Omissions Insurance protects title agents, including the closing cost agent, title looker, and escrow agent against lawsuits arising from title agents’ omissions and mistakes or fraudulent wire activities.
This insurance covers all costs incurred as a result if a lawsuit arises claiming errors in title documentation, title searches, and escrow. This coverage provides compensation to the insured in the event that the policy limits are exceeded.
Title Agents Omissions and Errors Insurance under the Fidelity–Pak Program
Title Agents Omissions and Errors Insurance Coverage Under the Fidelity–Pak Program offers a broad range of comprehensive coverages for title agents.
Claims relating to defects or coverage
Sometimes, the real estate process can be damaged by a defective or unmarketable property title. Also known as a title defect. This refers to an omission, error or other complication that is related to the property’s ownership and makes it unsuitable to sell to a valid buyer.
The buyer will typically pay the attorney or title company to search the title of the property as part of the settlement under a contract. This is to make sure the seller has a valid title that can transfer the property without any title defects. Sometimes, however, important information about the property is not recorded in county and state records. This puts the agent at risk.
Insurance coverage for defects or deficiency covers any claim resulting from a defect or defect that is not publicly recorded.
Consumer Financial Protection Bureau Matters (CFB) Coverage
The Consumer Financial Protection Bureau protects customers from abusive, unfair, and deceptive practices. It also takes action against companies that violate the law such as predatory lending.
A consumer can file a complaint against you company with the CFPB. If the CFPB investigates, it may decide that your company has violated federal consumer finance laws.
Consumer Financial Protection Bureau Matters Coverage covers costs incurred due to Consumer Financial Protection Bureau cases. This coverage provides coverage up to $150,000 for applicable attorneys’ fees, costs and expenses.
Claims – Independent Contractors
Independent contractors insurance protects Insureds from a claim.
Sometimes, it is necessary to hire an independent contractor in order to help you with your real estate business. It is important to ensure that your contractor has insurance. This will protect you from any damages caused by their errors or accidents.
