On December 3, 2019, the Iowa Title Guaranty Board unanimously voted to approve the 2015 ALTA® Closing Protection Letter–Single Transaction (“CPL”), as Revised 12-01-18, with Technical Correction 08-01-2019.
The 2015 ALTA® CPL, as amended by the 2018 revision and 2019 technical correction, incorporates various substantive changes from the 2014 form, including but not limited to:
- Addition of the following provisions:
- “Requirements” heading for the introductory section;
- The requirement to cooperate with Iowa Title Guaranty for claims made under the CPL;
- Language providing that the closer may not modify the CPL; and
- Exclusion terms which specifically note that excluded matters include fraud/theft, including electronic fraud, if said fraud/theft is perpetrated by anyone other than the closer.
- Clarification as to the following provisions:
- An assignee may be a guaranteed provided that the assignment was for value and the assignee was without knowledge of a claim at the time of assignment;
- Coverage related to defects, liens, encumbrances or other matters in connection with the transaction is provided to the extent afforded in the certificate;
- The CPL does not cover failure of the closer to determine the validity, enforceability, or the effectiveness of a document required by the guaranteed lender's closing instructions;
- Exclusions for particular laws includes failure of closer to comply with closing instructions related to those laws; and
- Iowa Title Guaranty is only liable under the CPL to the holder of the indebtedness at the time payment is made.