Portfolio insurance
Banks are often asked to provide finance where the owner of a large portfolio of properties wishes to raise capital against their real estate assets. Where there are a number of assets it may not be practical to carry out a full due diligence exercise, particularly if the financing is time sensitive. Also, if the properties were only acquired in the last year or so and full due diligence was carried out at the time the land owner may not wish to duplicate the work, due to cost.
A portfolio policy from First Title can be used to replace the due diligence required in connection with the financing of a large property portfolio, or reduce the volume of third party legal due diligence. In its most basic form a policy can be used to simply replace local authority searches but in more complex transactions it can be used as a risk management tool. In a transaction involving one thousand properties the lawyers may only have the time and capacity to carry out sample due diligence on ten per cent of these. Subject to our own underwriting, and where appropriate, our own sampling, First Title can provide a policy to insure against common title defects covering every property in the portfolio.