Lender's Title Insurance

We offer the American Land Title Association (ALTA) Loan policy in the traditional version or in short form. The Loan Policy insures the lender that its mortgage is a valid enforceable lien against the property subject to the exclusions in the policy and any exceptions on Schedule B. Gibraltar Title offers extended coverage on any Loan Policy that we close on the lenders behalf.

This includes the following coverages:
  • Facts which would be disclosed by a survey
  • Unfiled mechanics liens
  • Rights of parties in possession
  • Rights of parties under unrecorded documents
  • Covenants and Restrictions regarding use of the property
  • Easements, whether recorded or otherwise
  • Taxes and special assessments
  • Defects or liens arising in the "gap" period between the effective date of the        commitment and the recording of the insured mortgage.

We also offer the ALTA Residential Limited Coverage Junior Loan Policy. It insures the Lender that its borrower is the grantee in the last recorded transfer pertaining to the legal description of the property. The Junior Loan Policy provides coverage for taxes and for the gap period when we conduct the closing, but not for any of the other items in the list above.


More Information:   ALTA Policy Overview      ALTA Owner's Policy Options

A Loan without a Policy?

A Lender may purchase an Owners and Encumbrances Report if it does not require title insurance but in doing so it bears substantial risk on its own. In our O & E Report we recite the grantee in the most recently recorded deed. Encumbrances appearing on record on or after that deed also appear on the report. No assurance is given that the grantees have clear title and no assurance is given with regard to the numerous matters that could affect title that would not appear in the County Tract Index. Since the O & E Report is not insurance, we do not have the discretion to delete or "insure over" any objectionable items. Furthermore, liability for errors is greatly restricted in the report itself since the product is intended for informational purposes only and not as a substitute for title insurance.