Authority to Conduct Non-ATG Closings

Many members have asked about whether they can obtain CPLs for closings they conduct where ATG is not writing title insurance. ATG does not issue CPLs for any transactions where ATG is not insuring title. Thus, if an ATG member closes a transaction without writing title insurance, that closing is not an ATG closing and the member is not authorized by ATG to conduct the closing under Section 16(f) of the Title Insurance Act. 215 ILCS 155/16(f).

In those situations, what authority does an attorney have to conduct a closing? Under Section 3(9) of the Title Insurance Act, attorneys, when acting within an attorney-client relationship, may conduct closings. 215 ILCS 155/3(9). To do this in a manner that clarifies the closing is not an ATG closing, members would have to be able to produce a closing statement that does not contain ATG's name, and use a closing account that does not contain ATG's name. The only ATG forms permitted at the closing table are the commitment, ALTA Statement, and any forms used to clear exceptions, such as an Affidavit in Lieu of Survey or Personal Information Affidavit.

If an attorney has no title underwriter to issue a CPL and is not acting on behalf of a law client, then to conduct a closing, that attorney must register with the State of Illinois as an independent escrowee, pursuant to the requirements of Section 17 of the Title Insurance Act. 215 ILCS 155/17. For members who have a separate title company, or where the title company is the ATG member, that title company may not conduct closings without the authority of a CPL from an underwriter unless it separately registers as an independent escrowee with the State of Illinois. Please be aware of these requirements when agreeing to provide closing services for clients and customers.

[Last update: 1-13-11]

Posted on: Thu, 01/13/2011 - 8:28am