A June 2021
Procedural Bulletin reminded CATIC Agents of the need to record title documents within 2 business days of the closing, and to run title forward from the last search to the date of recording (the “Gap”) to confirm that there are no intervening matters that may affect title. This Procedural Bulletin confirms the June 2021 bulletin and clarifies that
any CATIC Loan and Owner policies that are issued prior to recording and within the Gap insure against loss or damage to the Insured as a result of any covered matters that may arise in the Gap but which may not be discovered until recording or thereafter.
The Date of Policy in any policy issued during the Gap should be the date of closing (or the date of disbursement, in the case of a loan policy). Keep in mind that if you date the policy as of the date of recording, the Gap is also covered. The jackets of the policies contain automatic gap coverage and effectively insure against loss resulting from any defect, lien or encumbrance attaching or recorded between the Date of Policy and the date the insured deed or mortgage is recorded. No endorsement is needed or required.
This coverage is a permanent covered matter when you issue a CATIC policy. It is not dependent upon nor limited to the duration of any public health emergency.
The goal of this bulletin is to allow our Rhode Island agents to close transactions despite the inability to record immediately and to provide peace of mind to our Insureds in these changing times.
