Title insurance protects real estate owners and their property from errors that occur through a specific date in time. Sometimes a policy holder wants to update their title policy to reflect a more current date. Typically, the best way to accomplish this is with a date down endorsement.
Reasons to Change Policy Dates
Why would a party want to change the effective date of their title insurance policy? There are several reasons why this might be beneficial, including:
- When a Lender Assigns a Mortgage
- When a Lender & Borrower Want to Modify a Mortgage
Searching Title Records
The first thing that needs to happen prior to issuing a date down endorsement is a new search of the property records. After the title search has been completed, the title company will present a letter report that shows any documents that have been filed from the policy date to the current date listed in the county records. This letter report provides essential information needed to craft the necessary modifications.
Using the information provided by the letter report, the title company will then draft a specimen endorsement, which includes standard policy exceptions which occur after the policy date, such as:
- Parties in Possession
- Mechanic’s Liens
- Survey Matters
Associated Costs & Premiums
One of the most important questions clients ask about adding a date down endorsement is “how much is this going to cost?” The title company will charge regular abstracting and examination fees for the work required. Additionally, there will be an added premium for the date down endorsement. Typically, this premium is calculated as a percentage of the original premium plus any additional funds advanced under the mortgage. The actual amount of the new premium will depend on a variety of factors, including:
- Policy Amount
- Time of the Policy Extension
- Any Additional Risk Factors
Minnesota Title Company
If you are interested in extending your title insurance policy effective date, contact a skilled title company to discuss your options. Contact our title experts at Commercial Partners Title today to speak with our experts!