What does "simultaneous issue" refer to in title insurance policies?

"Simultaneous issue" in the context of title insurance policies specifically refers to the practice of issuing both an Owner's title policy and a Lender's title policy at the same time. This practice often occurs during real estate transactions, where the buyer (who will be the owner) and the lender both require title insurance to protect their respective interests in the property.

Issuing both policies simultaneously typically allows for a cost-effective process, as title companies often provide a discount when both policies are purchased together, recognizing that the title search and risk assessment involved are the same for both policies. This enhances the efficiency of the closing process in real estate transactions, providing peace of mind for both parties involved.

Understanding simultaneous issue is important for recognizing how title insurance protects different stakeholders in a transaction and helps to streamline the process, ensuring that both the owner's and lender's interests are adequately safeguarded.