Post-Closing Title Updates - Why are they Important?
A timely, in-person, post-closing update is important because it is a second set of eyes looking over recorded documents to ensure that documents were recorded in their entirety and that they were executed with requisite formalities. Additionally, the update confirms that no encumbrances we were recorded during the GAP period that could affect title. Finally, once the update is complete, the final policy can be issued to the Insured.
For several reasons, reviewing recorded documents after they are returned from the land records is insufficient and does not constitute a post-closing update. First, the GAP period has not been examined to check for intervening encumbrances. Second, just because documents were returned from the land records does not ensure that they were properly recorded. Anecdotally, more than 50% of claims could be avoided by conducting a timely, in-person, post-closing update and spotting execution or recording errors (e.g. missing pages; missing Powers of Attorney; wrong schedules attached).
Discovering problems shortly after closing, while document signers are available and willing to correct documents, gives the title agent the opportunity to take corrective action before a claim arises.
For efficiency, many offices take advantage of the VATC Title Update Service. Click
to read more about the title update and discharge tracking services.