Title Coverage Denied After Misappropriation of Funds

Does Your Settlement/Escrow Agent Provide You the Assurances you Need?

The Superior Court of Pennsylvania recently denied a lender’s claim for coverage from a title insurance company after a settlement agent misappropriated the closing funds and failed to pay off the prior mortgages on the insured property.

This case highlights the importance of picking the right escrow agent for your closing needs; especially in states that draw a distinction between the title agency and the settlement agent. Assurances are only as good as the track record of the company behind them. For example, Two Rivers Title Company operates in five states and has the backing of two national underwriters. We have been in business for 15 years, growing into one of the largest independent title agencies in New Jersey, and I have been a licensed attorney in NJ & NY for 27 years. In all of that time, there has not been a single ethics violation or complaint against myself or the company. We also have a $5,000,000.00 E&O policy, fidelity and surety bonds. When we promise you can trust us, we have the experience and history to back it up.

Protect yourself and your clients by doing your homework and choosing your escrow agent wisely. Feel free to give me a call to answer any questions or to discuss this issue further.

Read the full article originally from the American Land Title Association (ALTA) website here.