Difference between revisions of "Closing Protection Letters in Alabama"
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See Section 27-3-6.1 of the Code of Alabama for details concerning the contents, uses, and minimum fees for a CPL in Alabama. | See Section 27-3-6.1 of the Code of Alabama for details concerning the contents, 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 by 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: | 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 by 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. | ||
Revision as of 15:03, 6 April 2018
Contents
Overview
Closing Protections Letters ("CPL"), 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 any 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 contents, 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 contents, 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 by 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
- 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.
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:
