ALTA Protection Closing Letters

Understand the benefits of a Closing Protection Letter and when it can be issued.

Parties to real estate actions face inherent risks that their closing agent may fail to follow the parties' written instructions or commit fraud, theft, dishonesty, or misappropriation while handling the parties' funds. In certain situations, these risks can be addressed by obtaining a Closing Protection Letter. This information helps parties involved in real estate transactions and their representatives, e.g. attorneys and real estate brokers and salespeople, understand when and where Closing Protection Letters can be issued. This information also explains the benefits that are available under Closing Protection Letters and how to maximize those benefits. Failing to understand Closing Protection Letters could leave you, your business, or your client exposed to significant risks of financial harm if the closing agent defalcates. This topic would be beneficial to anyone involved in real estate transactions and will offer information that identify steps that can be taken to attempt to offset those risks.