What is meant by 'simultaneous issue' in title insurance?

The term 'simultaneous issue' in title insurance refers to the practice of issuing both an Owner's Policy and a Lender's Policy at the same time during a real estate transaction. This process is common in real estate closings, as it provides coverage for both the buyer (the owner of the property) and the lender (the financial institution providing a loan for the property purchase).

Issuing these policies simultaneously is advantageous because it streamlines the closing process and can often result in cost savings for the buyer. When both policies are issued together, the title insurance company frequently offers a discount on the Owner's Policy, incentivizing buyers to protect their investment as well as providing the lender with security on their loan. This practice is a fundamental aspect of title insurance and directly addresses the needs of all parties involved in a property transaction.

The other options either do not accurately describe this term or relate to different aspects of title insurance that do not affect the meaning of 'simultaneous issue'.