Closing Protection Notice

Notice of Availability of Closing Protection Coverage

Pursuant to Ohio Revised Code Section 3953.32, all escrow agents are required to notify you of the availability of Closing Protection Coverage available to you in connection with your Closing/Escrow transaction for the premium stated in the Offer of Closing Protection Coverage outlined in the pdf form attached hereto.

Closing or settlement of a real estate and/or mortgage loan transaction can be characterized as having two components.  One component pertains to the title to the Premises and the title insurance policy therefore.  The other component pertains to the handling of funds and documents.  A title insurance policy does not cover losses due to the mishandling of funds or documents.  However, Closing Protection Coverage, as outlined below, does provide such protection.

 Description of Coverage:    The Closing Protection Coverage indemnifies you against the loss of settlement funds resulting from any of the following acts of the Licensed Agent or anyone acting on behalf of the Licensed Agent , subject to certain conditions and exclusions specified in the Closing Protection Coverage Form available for your review above:

  1. Theft, misappropriation, fraud, or any other failure to properly disburse settlement, closing or escrow funds; and
  2. Failure to comply with any applicable written closing instructions, when agreed to by the Licensed Agent .

Premium for Coverage:     The premium cost for the Closing Protection Coverage is $40.00 for Lender; $55.00 for Seller; $20.00 for Buyer/Borrower; and $20.00 for any other applicant for title insurance, and in no case shall the premium cost be less than $40.00 for this coverage in any transaction.

You are covered by a Closing Protection Coverage Form only if it is specifically addressed to you and you pay the required premium for the coverage.  A copy of the Notice of Availability of Closing Protection Coverage Form is available above. This coverage is only available if an Owners Title Insurance Policy or a Loan Title Insurance Policy is being purchased and the Agent that is issuing the title insurance is closing the transaction.