CEE Newsletter Spring 2011

May 2011

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Mortgage Law Changes in Poland

In February 2011 new legislation came into force, the first significant change to the Polish laws on mortgages and land and mortgage registers since 1982. A key change is that there will now be only one type of mortgage, with unification of the two existing types of mortgage. The new law removes the inflexibility that existed previously and has adjusted the regulations so that they are more in touch with the modern market.

While the law clarifies many previously more disadvantageous positions for lenders, it does not do away with all and like any new legislation there will be uncertainty over interpretation. In particular, prior to the new legislation, when a higher ranking mortgage was released then all lower ranking mortgages automatically moved up a place in ranking.  Under the new regulations the property owner, once the existing mortgage has been released, may offer this position to any new or existing creditor, thus weakening greatly the position of the second or lower ranked creditor. These potential risks have always been and are still covered by title insurance from First Title.

For specialist information on the new law and how it can affect you - First Title underwriters and business development executives can provide more information. Click here to contact us.

Hungarian Land Registry - 3 year challenge period

On the 28th April 2009 a new regulation amended the existing provisions of the Land Registry Act in connection with the limitation periods applying to any third party challenge to title. The new regulations dramatically lengthen the existing sixty day period to three years. The new regulations greatly increase the exposure of a property owner who has acquired the title in good faith, trusting in the validity of the registered title to a third party challenge. Property owners may not have the benefit of reps and warranties from their sellers to fall back on in the event of a third party challenge and could find they incur huge legal costs having to defend their title. The use of title insurance enables the property owner to manage their risk and pass the same to their insurer. Contact us by clicking here.

Experts for Experts

First Title, your specialist partner in risk management, can help provide solutions to get your projects closed. Concerned about the time and regulatory risk to register your mortgage rights in the Land and Mortgage Registers? Worried about representations and warranties from an insolvent seller? First Title has solutions with a specific insurance assuring the lender's ownership and registration rights and policies that easily cover seller's representations and warranties. From general coverage to specific needs, First Title provides bespoke and off- the-shelf insurance solutions for lenders, property developers and investors. In this risk adverse market, our expertise and specialist policies can make the difference between 'deal' or 'no deal'. For more information click here and contact us.

Why Use Title Insurance to cover representations and warranties?

  • Cover seller's warranties (useful in sales from an insolvent vendor where none are available or where there are doubts on the financial strength behind the warranties).
  • Provide investors and fund manager's a clean exit when property is sold or a fund closes to avoid reserve for contingent liabilities against reps and warranties related to title issues.
  • Streamlines transactions avoiding the need to negotiate reps and warranties on title with the seller.

Contact First Title to let us help find solutions to title issues you may be facing.

First Title wins Professional Service Provider of the Year

At the third annual EuropaProperty CEE Retail Real Estate Awards Gala in Warsaw on February 10th First Title was honoured with the award for Professional Service Provider of the Year for the second time in a row. The awards, which highlight the best commercial retail real estate companies, retailers and projects in the CEE region for 2009, were held February 11th at the Intercontinental Hotel Warsaw in Poland. The event brought together some of the top-performing firms from all of the major retail market sectors in the rapidly expanding CEE region. The EuropaProperty CEE Retail Awards Academy selected First Title as the Professional Service Provider of the Year from a competitive group of CEE service providers.

Coming off a difficult year in commercial real estate in CEE this award is great professional recognition from our peer group acknowledging First Title's place within the industry as a key partner for facilitating commercial property transactions and the market leader in title insurance.

Andrew Jackson, managing director of First Title operations in Central and Eastern Europe (CEE) comments: "With First Title winning the Service Provider of the Year Award for the second year in a row, it's recognition that real estate professionals appreciate the value we can add in a transaction. Although the last two years have been challenging I am delighted to say that First Title insured more than €1 billion worth of commercial property in CEE in 2009 and 2010. Investors and their lenders continue to look title insurers for solutions to mitigate their title-related risks."

First Title in Poland

First Title hosted a business breakfast in Warsaw to discuss Polish cases and underwriting thoughts and the process to the benefit of prominent legal firms and real estate clients. The discussions were led by First Title executives - John Maidens, CEO, Kevin Dick, COO, and Ian Borders, European Underwriting Director. First Title welcomed the opportunity to hear client feedback and stressed our commitment to Poland and the region.

Need more information on Polish cases or to talk about your transaction? Contact our Poland expert.

First Title in Germany

First Title and FAF International co-hosted a conference in Germany. Fifty senior German bankers and property market experts attended the conference in Frankfurt. The emphasis was on both specific German issues and CEE concerns as so many of the leading investors and lenders in the CEE/SEE region are German. For more information and copies of the presentations contact us.

Why First Title?

First Title Insurance plc is a wholly owned subsidiary of First American Financial Corporation (NYSE: FAF) a leading provider of title insurance to the real estate and mortgage industries, tracing its heritage back to 1889. First American and its affiliated companies provide title insurance to the real estate and mortgage industries; title and other real property records and images; valuation products and services; home warranty products; property and casualty insurance; and banking, trust and investment advisory services. With revenues of approximately $3.9 billion in 2010, the company offers its products and services directly through its agents and partners in all 50 states and aboard.