WHAT IS A PRIOR POLICY AND WHAT IS ITS PURPOSE?
The purpose of a prior policy is to obtain a reissue credit. This grants the holder of the policy a discounted title insurance rate if the following requirements are met: (1) the Owner’s policy of title insurance is NOT more than three (3) years old if the holder is selling the property. This time limit does not apply if the holder is refinancing the property. (2) the insured named on the prior policy must be the same as those involved in the current transaction (3) the prior policy must be delivered to the title company at the same time the order is placed (4) the prior policy does not need to be issued by the same company that is issuing the new policy (5) Only an Owner’s Title Policy may be used for a prior policy. Commitments and Loan Policies do not qualify.
