Can someone please explain the GAP Indemnity Agreement and how you explain it to the seller? What exactly are they indemnifying the title company of?
I would be happy to know once you find out.
Google says:
“What is a gap indemnity agreement? An indemnity requested by a title insurance company from either a borrower or a seller to minimize its risk during the time between closing a real estate transaction and the actual recording of the instrument.”
Also from Google:
“Indemnity is a comprehensive form of insurance compensation for damages or loss. In a legal sense, it may also refer to an exemption from liability for damages.”
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