Back Title Letter
Definition and meaning of Back Title Letter in real estate.
A back title letter is a document issued by a title insurance company to an attorney or title examiner, stating the condition of a property's title as of a specific date in the past.
In more detail
This letter allows the examiner to limit their search to transactions occurring after that date, saving time and expense. Typically, the company bases this letter on a previously issued title insurance policy, establishing that the title was clear up to that point. By using the back title letter, the examiner does not have to trace the property's entire chain of ownership back to its origin.
Instead, they focus only on the period between the date of the previous policy and the present day. This streamlined process is common in many states and helps expedite the closing process for buyers and sellers.
Key facts
| Category | Legal, Titles & Closing |
|---|---|
| Also known as | Back title certificate or starter |
| Issued by | Title insurance companies |
| Primary benefit | Reduces the time and cost of a title search |
A title company provides a back title letter from ten years ago to an attorney, who then only needs to research property records from the last ten years to issue a new policy.
Frequently asked questions
Does a back title letter replace a full title search?
No, it does not replace a search, but it allows the title examiner to shorten the search period by relying on the previous title work.
Who uses a back title letter?
Title attorneys and examiners use it to streamline the process of verifying a clear title before a property is sold or refinanced.