Under Illinois law, title insurance companies and agents will not be permitted to act as an escrow agent in a commercial or residential closing involving less than $2 million dollars unless a closing protection letter is issued.
The bill mandates the use of closing protection letters (CPLs) for transactions under $2 million dollars and where the authorization for the title insurance agent to act as an escrow agent is not provided by the agency agreement. The new bill is known as HB 5409.
There is no additional charge for the CPL.
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