First American Title Insurance Company streamlines property transactions by providing comprehensive title insurance coverage and defective title coverage.
Comprehensive title insurance helps to protect owners against losses by providing coverage if they are found not to be the owners or in cases such as fraud or forgery, incomplete documentation, invalid transfers, covered title defects, encumbrances on title and third party interests. Defective title coverage helps to protect owners for specific known title defects.
For a single, one-time premium, a title insurance policy protects property owners for as long as the owners or their heirs own the property. A loan policy protects a lender's interest in the property for the life of the loan, irrespective of subsequent packaging.
Before issuing a policy, First American Title conducts due diligence on the underlying title and transaction. Our underwriters bring to our clients unique, broad experience in property due diligence specific to Hong Kong and Asia. We work closely with our clients' legal advisors to minimise duplication of efforts, while focusing on specific areas of concern. Policies cover actual loss suffered by the insured as a result of the covered risk up to the insured amount. This is typically the value of the property or, in the case of a loan policy, the amount of the loan.
The insured may apply for an endorsement to cover appreciation in the property value over time, as well. The policy is no fault-, no negligence-based. If a third party makes a title claim, the policy owner can refer that claim to the title insurance company.
First American Title helps home buyers and sellers, real estate agents, mortgage lenders, commercial property professionals, home owners, developers and legal professionals close transactions. Find out more about our products and how First American can help you streamline your transaction and protect your investment.
Comprehensive Title Coverage
Property title systems and market practices in Hong Kong and throughout Asia make it challenging to establish a clean title to property. Most Asian countries do not have government-backed title registers and the quality and reliability of, as well as access to, the deeds registers is inconsistent.
Title insurance from First American provides property owners with an indemnity for loss suffered if they are found to not be the beneficial owners of the property. A separate title insurance loan policy provides lenders with coverage for losses incurred from underlying title issues and the validity, enforceability and priority of mortgage documentation. In the event of a claim for a covered item, First American will cover the legal costs of defence and the insured's actual financial loss up to the policy amount.
Some of the risks our comprehensive policy covers include:
- Lack of ownership
- Fraud or forgery
- Documents not being properly signed or authorised
- Invalid transfers
- Covered title defects
- Encumbrances on title
- Third-party interests such as leases or easements in the property
Defective Title Coverage
Even known defects in a property title can have a significant impact. Assessing the extent and impact of known defects can cause delays or cancellation of property transactions. First American provides a cost-effective and efficient solution to remedying potential title issues by indemnifying buyers from the impact of claims against their title on specific issues. A Defective Title Insurance loan policy can also cover lenders for underlying title issues.
Typical defects over which we may be able to insure include:
- Defective corporate execution
- Missing or invalid powers of attorney or inheritance documentation
- Discrepancy in signatures or names
- Missing Government Lease
- Missing or incomplete statutory documents
- Invalid nomination
Please let us know in which type of title policy you are interested, and we will contact you with samples and detailed coverages.