Leading Title Insurance

Specialist Commercial Risks

Bespoke from First Title

Tailored legal indemnity insurance that provides comprehensive risk mitigation to help keep your clients’ projects on track.

In 2015, First Title issued policies for 80% of the top 10 and 77% of the top 100 law firms in the UK.*

First Title was among the first to offer legal indemnity insurance to property sector clients throughout the UK and Europe, from developers to lawyers. Today, we work across all business sectors involved in real estate transactions, including:

■ Law Firms

■ Residential / Commercial Developers

■ Brokers

■ Renewable Energy Firms

■ Surveyors

■ Accountants

■ Commercial Estate Agents

■ Property Investment Funds

■ Lenders

We cover more than 50 separate known risks. However, we often work on a bespoke basis, ensuring we provide a completely tailored solution to meet your client’s exact requirements. Additionally, we have an enviable reputation for introducing innovative products to meet the ever-changing needs of the market.

With consistent A ratings** from the major rating agencies and the security and financial strength of our parent company First American Financial Corporation behind us, both you and your clients can be safe in the knowledge that you are working with a solid and dependable business partner.

Real Estate FinanceOur title insurance policies provide the reassurance that real estate financiers need to ensure deals are bankable. Whether it’s a purchase, development or refinance, our policies mitigate the risk of title problems that may affect the validity, enforceability, priority of the loan or marketability of the property. If execution or registration problems arise, our solutions also provide cover on a no-fault basis for loss suffered as a result of a covered risk.

Similarly, our Mortgage Lender Protection Policy (MLPP) provides comprehensive, versatile cover for lenders in key areas, such as:

■ Enhancing security in new lending to satisfy stricter credit committee requirements.

■ Tidying up existing security as part of a security review or debt restructuring negotiations.

■ Improving the saleability of loan books.

■ Strengthening securitisation ratings.

■ Overcoming title or warranty concerns in recoveries or distressed transactions.

■ Ensuring the debt service cover ratio is maintained during project finance transactions.

Developers PolicyDevelopers Policies are used to insure development projects against known title risks, they can also help to manage cash flow and ensure the feasibility of projects.

It is available on both a pre-planning or post-planning basis. Post-planning cover is the traditional approach, meaning the offer of insurance is conditional upon obtaining planning consent. Pre-planning cover, however, can be implemented before the conclusion of the planning process. This allows potential claims to be managed or remedied sooner, which may avoid issues escalating.

Portfolio CoverOur portfolio insurance helps ensure quicker, more cost effective purchase, refinancing and securitisation of property and loan portfolios without compromising on security. This type of cover is particularly useful when speed or budget are critical, such as in bid situations. We will work alongside the legal team at the due diligence stage and will conduct a sample of the portfolio. We then assess the overall risk based upon our sampling and offer a “good and marketable title” guarantee across the portfolio.

Judicial ReviewWe offer legal indemnity cover for loss in market value of the property or development, together with itemised abortive development costs, resulting from your client’s planning permission being challenged and quashed by judicial review. The policy also covers all legal costs in defending a judicial review challenge, as well as a variety of other losses.

Rights of LightOur Rights of Light policies provide two forms of protection:

1. We will pay all legal costs involved in defending claims against our insured developer.

2. We will typically insure any combination of the losses incurred as a result of either a third party claim or a court ordered cessation of a project. These can include settlements, damages, abortive or additional project costs and diminution in value of land.

Mines and Minerals Our mines and minerals cover offers protection against the cost of defending, settling or compensating if a third party attempts to interfere with the surface of the land by exercising the right to mine or extract minerals. It also provides protection if a third party seeks to thwart the development or demands a ransom payment by claiming that the foundations of the development trespass into the minerals strata.

Property Owners Protection Policy (POPP)Our Property Owners Protection Policy provides a good and marketable title guarantee. It also protects against defects and issues that would not fall within the scope of the due diligence report. This flexible policy is also often used by investors and funders as it can assist in raising leverage at the purchase stage, as well as facilitating a clean exit free of contingent liabilities, in the event of a sale. For recoveries and receiverships the policy offers peace of mind during an acquisition by replacing the lack of available reps and warranties. It can also be used when disposing of assets and can help to reduce price chip and speed up the sales process.

Renewable EnergyRenewable energy developments often carry significantly different risks to that of standard property developments. That’s why we developed our Green Title product, to protect developers and ensure projects are bankable. Green Title is tailored to cover not only the standard legal ownership related risks, such as restrictions on title and reserved rights, but also more complex developer-specific interests, such as equipment relocation and decommissioning, as well as items such as loss of profit and liability for late grid connections.

Tenant CoverRecognising that diminution in value cover may be of little value to a tenant, we have specifically designed tenant cover endorsements. Typically working alongside our standard known risk policy, our tenant endorsements offer protection for the primary losses faced by tenants, such as rental liability and consequential loss, as well as loss of profits and relocation costs.

Consequential Loss Our consequential loss endorsement offers greater protection for losses incurred by interruption, whether by injunction or to manage a claim. Typical losses covered include: additional interest payable to a bank or other financial institution; additional expenditure incurred by permitting staff, plant or other equipment to be used at another location; depreciation and other standing charges for plant and equipment; wages, salaries; and other costs of staff.

First Title Insurance plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. First Title Insurance plc is registered in England under company number 01112603. Registered office: First Title Insurance plc, ECA Court, 24-26 South Park, Sevenoaks, Kent TN13 1DU.

Call: +44 (0)20 7160 8666 Email: comm.team@firsttitle.eu Visit: www.firsttitle.eu*Source: FTI Management Information 2015. **Please refer to our website for further information. **