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Sale With a Commitment to
Insure a Resale (110% Hold Open Policy) Rate
This rate applies under two circumstances:
- When the transaction involves the initial
issuance of a commitment to a purchaser, usually
an investor, who plans to resell the property
within one year. The policy will be issued upon
a single resale to the ultimate purchaser within
one year of the date of the commitment.
- When there is a resale after a foreclosure.
The foreclosing lender, whether it is a
government loan or not, usually will not require
an owner's policy to be issued to them at the
completion of a foreclosure, but they may want
to provide a third party purchaser with an
owner's policy when they sell the REO property.
In this situation, the commitment may be held
open for a period of two years.
This rate does not apply to refinance
transactions and the customer must request the hold
open policy when placing the initial order. It is
only available for a one-time hold open transfer
(extensions are not available).
The rate is 110% of base rate of the purchase
price. The agent shall remit based on 100% of the
premium and retain the additional 10% for
administrative fees for holding the commitment
open.
The premium is payable in full at the initial
purchase transaction.
If at resale the policy to be issued is for a
greater amount than that proposed in the
commitment, the increased liability shall be
charged at the applicable base rate.
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