Escrow & Title
What is a 'Closing Protection Letter' (CPL) in a Delaware real estate transaction?
AA letter from the closing attorney guaranteeing the transaction will close
BAn indemnification agreement from the title insurance company to the lender (or buyer) protecting against loss due to the closing agent's fraud or dishonesty✓ Correct
CA letter protecting the buyer from undisclosed defects after closing
DA certificate from DNREC that the property is environmentally clean
Explanation
A Closing Protection Letter (CPL) is an agreement from the title insurance underwriter indemnifying the lender (and sometimes the buyer) against loss if the closing agent (attorney or settlement agent) misappropriates funds or fails to follow closing instructions.
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