Q & A | R-5 “Simultaneous Issue” Rule

Q: When a purchaser who is executing a purchase money note and deed of trust for the purchase of real property is required to put up additional real property as collateral for the loan, can I issue the Owner’s Title Policy and the Lender’s Title Policy under the R-5 “Simultaneous Issue” rule?

A: No. In order for the premium to be calculated based on a simultaneous issue rate, Rate Rule 5 requires that the Lender’s Title Policy being issued “…cover the same land or a portion thereof covered by the Owner’s Title Policy, and covering no other land..” The additional collateral tract is additional land not covered in the Owner’s Title Policy, therefore you will charge a full premium for both the Owner’s Title Policy and the Lender’s Title Policy.