Difference between revisions of "Closing Protection Letters in Alabama"
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===Overview=== | ===Overview=== | ||
| − | Closing Protections Letters (" | + | Closing Protections Letters ("CPLs"), also called Settlement Protection Letters, are authorized to be issued in Alabama as part of single transactions only. They may be issued to borrowers, buyers, lenders, and sellers in a given transaction. |
| + | |||
===Sources=== | ===Sources=== | ||
| − | The issuance of Closing Protections Letters is permitted under Section 27-3-6.1 of the Code of Alabama [https://law.justia.com/codes/alabama/2012/title-27/chapter-3/section-27-3-6.1/]. This code section also defines the | + | The issuance of Closing Protections Letters is permitted under Section 27-3-6.1 of the Code of Alabama [https://law.justia.com/codes/alabama/2012/title-27/chapter-3/section-27-3-6.1/]. This code section also defines the content, uses, and minimum fees for a CPL in Alabama. |
===Compliance=== | ===Compliance=== | ||
| − | See Section 27-3-6.1 of the Code of Alabama for details concerning the | + | See Section 27-3-6.1 of the Code of Alabama for details concerning the content, uses, and minimum fees for a CPL in Alabama. |
====Disclosures==== | ====Disclosures==== | ||
| − | At or prior to closing any transaction involving the purchase or sale of a fee simple or possessory interest in real property, in which a CPL has not already been requested by the lender prior to closing, a written statement must be obtained | + | At or prior to closing any transaction involving the purchase or sale of a fee simple or possessory interest in real property, in which a CPL has not already been requested by the lender prior to closing, a written statement must be obtained from the parties to the transaction acknowledging that they have received a notice that a CPL may be available for them and that they do not desire to purchase a CPL. Section 27-3-6.1(e). The notice must contain the following: |
* (1) The address or legal description of the property. | * (1) The address or legal description of the property. | ||
* (2) A disclosure that closing protection may be available in accordance with the guidelines of the title insurer and the fee therefor. | * (2) A disclosure that closing protection may be available in accordance with the guidelines of the title insurer and the fee therefor. | ||
* (3) A space to indicate the desire of the purchaser to either acquire or decline closing protection. | * (3) A space to indicate the desire of the purchaser to either acquire or decline closing protection. | ||
* (4) The date the notice is executed by the purchaser. | * (4) The date the notice is executed by the purchaser. | ||
| − | * (5) The signature of the purchaser or purchasers. | + | * (5) The signature of the purchaser or purchasers. <u>Id</u>. |
| − | Id. | ||
===Forms=== | ===Forms=== | ||
| + | |||
| + | ====Disclosure Form==== | ||
| + | * None filed | ||
| + | * [link to proposed form for agents] | ||
| + | |||
| + | ====CPL Form==== | ||
* Latest CPL Form Filing Date: 01-26-2016 | * Latest CPL Form Filing Date: 01-26-2016 | ||
* Filing Requirements: Form & Rate to be filed | * Filing Requirements: Form & Rate to be filed | ||
| Line 23: | Line 29: | ||
====Dual Agent CPLs==== | ====Dual Agent CPLs==== | ||
| − | There is no specific prohibition against the issuance of a dual agent CPL. | + | * There is no specific prohibition against the issuance of a dual agent CPL. |
| + | * The main agent must be a licensed Alabama title agent. | ||
| + | * The secondary agent must be a WFG approved "settlement service provider" | ||
| + | * The secondary agent may also need to be a Alabama domestic entity. | ||
===Rates=== | ===Rates=== | ||
| Line 43: | Line 52: | ||
===Notes=== | ===Notes=== | ||
* Notes: | * Notes: | ||
| − | * Rate Checked: 5 | + | * Rate Checked: 5-6-2016 |
* By: ABF | * By: ABF | ||
* Manual Date: | * Manual Date: | ||
| + | |||
| + | ===Cross-References=== | ||
| + | * [[Alabama]] | ||
| + | * [[Closing Protection Letters]] | ||
Latest revision as of 16:45, 25 February 2019
Contents
Overview
Closing Protections Letters ("CPLs"), also called Settlement Protection Letters, are authorized to be issued in Alabama as part of single transactions only. They may be issued to borrowers, buyers, lenders, and sellers in a given transaction.
Sources
The issuance of Closing Protections Letters is permitted under Section 27-3-6.1 of the Code of Alabama [1]. This code section also defines the content, uses, and minimum fees for a CPL in Alabama.
Compliance
See Section 27-3-6.1 of the Code of Alabama for details concerning the content, uses, and minimum fees for a CPL in Alabama.
Disclosures
At or prior to closing any transaction involving the purchase or sale of a fee simple or possessory interest in real property, in which a CPL has not already been requested by the lender prior to closing, a written statement must be obtained from the parties to the transaction acknowledging that they have received a notice that a CPL may be available for them and that they do not desire to purchase a CPL. Section 27-3-6.1(e). The notice must contain the following:
- (1) The address or legal description of the property.
- (2) A disclosure that closing protection may be available in accordance with the guidelines of the title insurer and the fee therefor.
- (3) A space to indicate the desire of the purchaser to either acquire or decline closing protection.
- (4) The date the notice is executed by the purchaser.
- (5) The signature of the purchaser or purchasers. Id.
Forms
Disclosure Form
- None filed
- [link to proposed form for agents]
CPL Form
- Latest CPL Form Filing Date: 01-26-2016
- Filing Requirements: Form & Rate to be filed
- Current From: 3172900
- ALTA Version: 2015
Dual Agent CPLs
- There is no specific prohibition against the issuance of a dual agent CPL.
- The main agent must be a licensed Alabama title agent.
- The secondary agent must be a WFG approved "settlement service provider"
- The secondary agent may also need to be a Alabama domestic entity.
Rates
State Mandated Rates
- Buyer: $25.00 (minimum)
- Seller: $50.00 (minimum)
- Lender: $25.00 (minimum)
- Borrower: $25.00 (minimum)
WFG Rates
- Buyer: $25.00
- Seller: $50.00
- Lender: $25.00
- Borrower: $25.00
Remittances
100% of any CPL fees must be remitted to the Underwriter.
Notes
- Notes:
- Rate Checked: 5-6-2016
- By: ABF
- Manual Date:
