Title Insurance and Escrow/Settlement Instructions: Risk Mitigation, Claims Recovery, and Failed Closings Litigation

About the Course

Introduction

This CLE course will explore title insurance policies, escrow/settlement instructions, and practical strategies to mitigate the risk of failed closings and maximize recovery from those responsible for the failure.

Description

Title insurance policies and escrow/settlement instructions are two of the most critical components of all real estate transactions. When aligned, they provide protection to the parties; when title insurance and instructions are misaligned, parties are exposed to legal and financial risk.

The parties' instructions to the title insurer and the escrow/settlement agent direct how the transaction should be closed. The title insurance policy provides a method of financial recovery if the transaction is not closed as required by the instructions. Together, they should provide complete protection for a party to a real estate transaction. However, several problems can arise, making recovery under the express and implied escrow instructions and the title insurance policy challenging, time-consuming, and costly!

Designed for real estate finance attorneys, lenders' counsel, borrowers' counsel, title professionals, and other transaction participants, this course will examine the interplay between title insurance coverage and escrow/settlement instructions, spotlighting when and how to identify and mitigate the risks of failed closings through insurance. The panel will analyze common closing process breakdowns, including undisclosed record title defects and non-record title defects; closing instruction inconsistencies related to lien priorities and real property interests, etc.; agent misconduct alleged to be outside the closing protection letter (CPL) or the title insurance policy; when title insurance policies do not comply with settlement instructions; and more. Through this exercise, our panelists will outline strategies and transaction structures to help practitioners avoid title insurance disputes. If the unfortunate occurs, the lessons learned from this course will help counsel maximize recovery against title insurers.

Listen as our authoritative panel outlines practical strategies to minimize closing risks, navigate claims, resolve litigation, and maximize title insurance recoveries for failed real estate closings.

Credit Information

This 90-minute webinar is eligible in most states for 1.5 CLE credits.
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Live Online

On Demand

Date + Time

event
Tuesday, August 25, 2026
schedule
1:00 PM ET/10:00 AM PT

I. Title insurers: local vs. national offices

II. Discovering and dealing with title defects

A. Concealed and undisclosed record title defects

B. Non-record title defects (i.e. lack of authority, duress, undue influence, and more)

III. Instruction inconsistencies and compliance failures

A. Identifying and resolving conflicting real property interests

B. Nonconforming title insurance policies: when and how they arise at closing

IV. Closing agent misconduct

A. Failure to strictly comply with express and implied instructions

B. Failure to disclose and inform

C. Recordation of documents

D. Handling of funds

E. Title insurer's liability for agent's misconduct with or without a CPL

V. Navigating escrow/settlement and title insurance claims

VI. Failure to act: when the title insurer or the closing agent fails to resolve closing instruction inconsistencies

VII. Claims and litigation with the title insurer, agent, and third parties

The panel will review these and other key issues:

What are the potential risks associated with undisclosed or concealed record title defects?
How can parties resolve disputes involving non-record title defects?
When does agent misconduct fall outside a CPL or title insurance policy, and how can counsel address it?
How can counsel ensure escrow instructions are clear, consistent, and enforceable?
What strategies maximize policy recovery in the event of a failed closing?