Get Gap Indemnity Agreement

The Gap Between the Closing and Disbursal of FundsTitle insurance insures the purchaser's ownership (or a lender's mortgage) as of the date and time of recording of an insured instrument (defined in a title insurance policy as the Date of Policy ).

The GAP is the time period between the closing of the sale and purchase transaction when a title commitment is issued to the buyer and the actual recording of the seller's deed. ... In a traditional closing between a seller and a buyer, the closing transaction usually takes place on the same day.

In a gap closing, which is the more common method of closing, the parties deposit all closing deliverables, including the buyer's funds, in escrow with the title insurance company and the title insurance company issues title insurance in favor of the buyer.

The Gap Between the Closing and Disbursal of Funds Title insurance insures this gap in time should a title defect arise prior to the new deed of mortgage being filed. There is no additional cost as this gap coverage is included as a Covered Risk in the Policy.

Errors in title work can cause title issues making your closing delayed. Both buyers and sellers should purchase title insurance to protect themselves against these issues, which can become big problems without protection. Make sure to check with your real estate and title agent on this.

An indemnity requested by a title insurance company from either a borrower or a seller to minimize its risk during the time between closing a real estate transaction and the actual recording of the instrument.

An indemnity requested by a title insurance company from either a borrower or a seller to minimize its risk during the time between closing a real estate transaction and the actual recording of the instrument.

An affidavit, if requested by the Title Company, as may be necessary to ensure the gap between the effective date of the Title Commitment to and through the date of the recordation of the deed to the Owned Real Property; and.