Escrow & Title
What is a 'hold open policy' in Illinois title insurance and when is it used?
AA policy kept open for future transactions on the same property
BA title policy that holds the insured amount open for additional disbursements in a construction loan scenario, adjusting as draws are made✓ Correct
CA policy that remains open while a title dispute is pending
DA policy allowing future buyers to be added as insureds
Explanation
A hold open (or date down) endorsement in a title policy allows the policy to remain open and be updated as construction loan draws are made. Rather than issuing a new policy for each draw, the insurer holds the policy open and endorses it to reflect each new loan amount. This is cost-effective for construction financing and ensures continuous title insurance protection throughout the construction period.
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