February 28, 2025

The Iowa Land Title Association (ILTA) if offering a series of four professional development courses as part of their ILTA Certified Land Title Professional Program. Registration is now open for the first course: Chain of Title Voluntary Alienation. The course will be held at the Iowa Finance Authority in Des Moines on April 4, 2025. Early registration rates apply until March 7, 2025.

When rendering a final title opinion for use in the issuance of ITG coverage, the examiner must show all the following information in the guaranteed mortgage exception exactly as it is shown in the abstract entry:

A title “endorsement” is a product that expands the coverage of a standard certificate, often by removing exceptions to the standard certificate or adding coverage specific to the property or transaction type. With any expansion of coverage comes increased risk to ITG. Therefore, to ensure ITG is not assuming unnecessary risk, it is vital that a field issuer only issues applicable endorsements when they are required to do so.

ITG has observed through the audit process that there are field issuers who are issuing endorsements as a matter of routine based on an inaccurate understanding that certain endorsements are always necessary.

One common misconception is that the Comprehensive—Improved Land, Environmental Protection Lien (ALTA 8.1) and Location (ALTA 22-06) endorsements are “standard endorsements” that all lenders require and must always be issued. Another common misconception is if the subject property is in a planned unit development that a Planned Unit Development—Assessments Priority (ALTA 5-06) endorsement must always be issued, or if the subject property is a condominium that a Condominium—Current Assessments (ALTA 4.1 ) endorsement must always be issued.

Each lender determines their own set of required endorsements, and some lenders do not require any endorsements. There is no circumstance in which any specific endorsement must always be issued. This means that the field issuer must verify the requested endorsements on each transaction prior to their issuance.

Accordingly, a field issuer must only issue an applicable endorsement when they receive a written request for the endorsement from the lender for a lender certificate, or a written request for the endorsement from the proposed titleholder(s) for an owner certificate for that specific transaction.

A Lender Form—Iowa Title Guaranty Certificate (Lender Certificate) provides title coverage to the lender only. The Lender Certificate does not provide coverage to the property owner(s).

For a purchase transaction, the property owner(s) have the right and opportunity to obtain title coverage by requesting an Owner Form—Iowa Title Guaranty Certificate (Owner Certificate). Therefore, the ITG Notice of Availability of Iowa Title Guaranty Owner Certificate is required to be executed by proposed titleholder(s) on all purchase transactions for which either lender and/or owner coverage will be issued.

If the titleholder(s) elect coverage then the field issuer is obligated to issue the Owner Certificate and any applicable endorsements requested in writing by the proposed titleholder(s), upon fulfillment of the commitment requirements and conditions and payment of any additional premium, if necessary.

When a Closing Protection Letter (CPL) is issued, the settlement and disbursement must be performed by the ITG Closer named on the CPL.

The ITG Closer may engage a third-party notary to obtain signatures and acknowledge the closing documents, but the CPL closer shall remain responsible for the performance of delegated services and liable for any damages arising therefrom. The ITG closer has an obligation to review all closing documentation to ensure accuracy and completeness prior to disbursement.

The ITG Closer shall also maintain responsibility for ensuring the documents that convey the Title or create the Mortgage to be guaranteed, or both, are recorded in the appropriate county office immediately after disbursement, and in no event later than the tenth business day following the certification date of the pre-closing search certification.

Carrie Nutt; carrie.nutt@iowafinance.com; 515.452.0482

Carrie is a long-standing member of the ITG team and is a valuable resource for Participants to contact regarding all ITG matters. Carrie plays a vital role in ITG’s division issue department and in ITG’s compliance department.

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