December 5, 2024

ITG requires a written pre-closing search certification prepared by an ITG participating abstractor on all transactions that include a Gap Coverage Endorsement or a Closing Protection Letter. The search must commence from the certification date and time of the preliminary abstract update (or Form 900, if applicable), and continue through a date and time as close to the closing date as possible. 

The pre-closing form must include all the same information as required by ITG in an abstract continuation, including but not limited to, the full legal description. To assist our participants, ITG has developed a Pre-Closing Search Form Template which may be located on ITG’s resource page. A participating abstractor is authorized to provide their own form if it is substantively similar to the ITG form. 

All information pre-entered on the form by the requester must be verified by the abstractor, where practicable, and corrected if necessary. For example, if the requester enters the legal description on the form, the abstractor must review and ensure it is correct. Copies of any applicable documents must be provided with the completed form. The form must be signed by the ITG authorized signatory and include the abstractor’s ITG participation number.

Encroachments. As part of the preparation of a commitment, a field issuer is required to review the Assessor’s GIS map showing the boundary lines, the location of any improvements relative to the property lines, easements, building setback lines, property dimensions, and completed dwelling to determine the existence of any obvious encroachments. If an obvious encroachment is observed, the field issuer must consult with the examining attorney or an ITG underwriter to determine if there is a potential encroachment which necessitates an exception from coverage on Schedule B, Part II of the commitment.

The purpose of ITG instituting this procedure is to reduce claim risk to ITG under Covered Risks 2(c) of the jacket of a certificate:

2.    Any defect in or lien or encumbrance on the Title. Covered Risk 2
       includes, but is not limited to, coverage against loss from:
       (c)     the effect on the Title of an encumbrance, violation, variation,
                adverse circumstance, boundary line overlap, or encroachment
                (including an encroachment of an improvement across the
                boundary lines of the Land), but only if the encumbrance,
                violation, variation, adverse circumstance, boundary line
                overlap, or encroachment would have been disclosed by an
                accurate and complete land title survey of the Land.

If you need to attach an additional Composite Mortgage Affidavit (“CMA”) or Notice of Availability (“NOA”) with an issued commitment because there are more than two parties who are required to execute the Owner/Seller CMA, Buyer CMA, or Buyer NOA, these stand-alone forms may be located on ITG’s Resource Page under the Residential Forms Tab.

If you have clients, such as lenders or realtors, who often use the stand-alone Owner/Seller CMA, ITG recommends that you provide them with the latest version Revised 06-06-2023, as they may be unaware that an updated version is available. 

If you add an exception to Schedule B, Part II of a Lender Certificate you must delete the pre-populated “1.   None" exception.

Document Retention. Participating closers shall maintain a closing file for each real estate transaction for which the closing agent performed real estate closing services pursuant to a CPL. Closers shall maintain transaction files in such a manner that information pertaining to activities of the participant is readily available to ITG while protecting confidential client information. Closers shall retain files for a period of ten (10) years after the effective date of the certificate or the effective date of the commitment if a certificate is not issued. A list of records to retain at a minimum can be located on pages 18 and 19 of the ITG Closing Protection Letter Manual which may be located on ITG’s resource page.

Heidi Koll: heidi.koll@iowafinance.com; 515.452.0479

Heidi is the contact for everything related to your Participant information in CAP. If your question is not answered in ITG’s FAQs under the ITG PARTICIPANT & STAFF tab on the Resource Desk, then please reach out to Heidi for assistance.

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