New York Gap Indemnity Agreement
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FAQ
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.
: to reduce or eliminate a difference between two people, groups, or things. often + between. We hope to close the gap between well-funded suburban schools and the struggling schools in poorer communities.
Gap insurance is an endorsement added to the title policy that provides additional coverage for title defects that may arise during a gap period.
The Gap Between the Closing and Disbursal of Funds There is often a gap in time between the actual closing and disbursal of funds, and recording of the deed or mortgage at the county. Title insurance insures this ?gap? in time should a title defect arise prior to the new deed of mortgage being filed.
A mutual indemnity agreement, also known as a mutual indemnity treaty, is an agreement (not a legally binding contract) between specific underwriters within a state to indemnify or hold one another harmless for some loss or damage for specific actions that may cause damage or loss related to a potential title claim.
