Title Underwriting

Title Underwriting is part of the title insurance process and is performed by the title insurance company that will issue the title insurance policy for the transaction. You are likely dealing with a title insurance agent who is an authorized policy issuing agent for several underwriters. For example, Wise County Title Company is a policy-issuing agent for six nationwide title insurance companies.  

The local agent abstracts and examines the title to the property to identify the chain of title and examine documents to look for any issues within the chain. When problems are found, the local agent sends the information to the Underwriters to review and make specific curative requirements that fit within their specific company guidelines. Each underwriter will have different claims experience and various approaches to perform within their experience.

The local title insurance agent issues the Commitment for Title Insurance, which includes the underwriting requirements. They work with the buyer and seller in the transaction to acquire the documents necessary to meet the underwriting requirements.  

The issues could be straightforward, like obtaining a release of the sellers existing lien or a more complicated issue, like the outstanding interest of a former owner that needs to be acquired. Still, whatever the problem is, the purpose of underwriting is to ensure that the new buyer has an insurable title for their future projects, whatever they may be.