Title Insurance & Indemnity For Sellers

A title insurance & indemnity policy can also provide financial benefits to Sellers of either property or special purpose entities which own property. In many instances, a title policy can replace sellers’ representations and warranties relating to title, in particular:

• If the seller is a public company, it avoids carrying contingent liabilities and explanatory footnotes.
• In the case of distressed sales, buyers may not want to rely on sellers’ representations and warranties and may require a price reduction or cash collateral to back them up. A title policy satisfies the needs of both parties by covering those risks.

A title policy can also facilitate a secure unwinding of a special-purpose entity, or series of such entities upon asset sale.