Posted by Ronnie_WA on 12/6/10 7:44pm
Msg #364163

E & O that covers the cash we collect - recommendations

Can anyone tell me the verbiage in the Signing Agent E&O policy offered on this site that would cover the cash we collect. If you have coverage from elsewhere that will cover funds, let me know. I am so uncomfortable with the title companies having me collect huge cashier checks, eg $75,000, when they could have the funds wired in. I am looking for a Signing Agent policy that specifically covers the money if I'm mugged, etc.

Reply by MW/VA on 12/6/10 9:05pm
Msg #364172

E&O doesn't cover handling money. That's what being Bonded

is for. Many states don't require a bond, and we can't even get one here in VA. I personally don't see the need since we are just handling a check that isn't made payable to us. Check on the availability of a Bond in your state.

Reply by Moneyman/TX on 12/6/10 10:19pm
Msg #364188

Have the borrower write 'For Deposit Only" on back of ck

Also add the name exactly as it is on the front of the check under for deposit only.

That is one extra measure of protection.

"Placing A Stop Payment On A Cashier's Check" -- http://www.bankersonline.com/operations/gurus_op072103d.html


E&O won't cover this area.

Reply by ReneeK_MI on 12/7/10 5:29am
Msg #364198

Absolutely as Moneyman says, but tweaking that a little ...

...since many times buyers/borrowers have their cashier's checks made payable to themselves, endorsing the back with their OWN signature - write "for deposit only by {insert name of Settlement Agent} below their signature.

Reply by taxpro on 12/7/10 1:49pm
Msg #364226

Renee, why do they do that?

I'm just curious. I've never seen a BO make the check to themselves, and endorse it to the title company, but I'm sure they have a good reason for it.

Reply by Lee/AR on 12/7/10 3:29pm
Msg #364243

Not Renee, but...

It simply makes it easier to 'correct' any last minute problems and the person holding the check can easily cash it (made payable to them) and get a new check issued. Getting a Cashiers Check corrected at the last minute is NOT possible.

Reply by Linda_H/FL on 12/7/10 3:34pm
Msg #364245

Not Renee but I've seen this

In CT when I worked in the law firm, buyer/borrower bought funds to the table to close purchases in the form of cashier's checks payable to the themselves - this way if anything fell through at the table, which did happen on occasion when something went wrong between buyer and seller, the money was still the borrowers' .

Have never seen it down here - always cashier's checks payable to title.

Reply by ReneeK_MI on 12/7/10 3:52pm
Msg #364250

AM Renee - couldn't resist saying so. =) n/m

Reply by Linda_H/FL on 12/7/10 4:21pm
Msg #364259

ROFL....and that all you've got??!!....:) n/m

Reply by ReneeK_MI on 12/7/10 4:56pm
Msg #364263

No ... I also have the "closing in 4 min, no docs" giddiness n/m

Reply by PAW on 12/7/10 2:29pm
Msg #364234

Re: Absolutely as Moneyman says, but tweaking that a little ...

Interesting. The three major title companies that I worked at all required a cashiers check made out to the title company. The would not accept a 3rd party check, even if it was a cashiers check and made out to the borrower/buyer and endorsed over.

Reply by ReneeK_MI on 12/7/10 3:52pm
Msg #364249

location, location?

I can't say as I remember ever seeing a Settlement Agent asking borrower/buyer to make checks self-payable, here it's a loan officer or RE Agent's directive, usually to the chagrin of the Settlement Agent. One of those "I don't know why we do this, but we've ALWAYS done it like this" things.

Never had a Settlement Agent refuse ANY kind of check (lol). I mean, none have turned either version back. I'm only talking about certified funds, btw - not personal checks.

It was interesting what was said (can't see now, think it was Linda?) about a reason for self-payble checks - that they would be easier to cash should the deal tank at the table. But ...I do remember one guy who had his cert. check made payable to the LENDER instead of the Settlement Agent, and I sent him back to the bank - he had no trouble getting it re-drawn.

Reply by Linda_H/FL on 12/7/10 4:24pm
Msg #364260

"Had no trouble getting it redrawn"

yes..true - "redrawn" - but it's not his money any more - he couldn't cash the check and put it back in his account, could he?

and sorry - jumped the gun on the prior response...are you sure this is Renee??

Reply by ReneeK_MI on 12/7/10 4:48pm
Msg #364262

Good question!

Ok, no trouble having it redrawn - I don't know the answer, Linda, but if he could have it redrawn easily, payable to someone else - couldn't he also have it redrawn payable to himself, if they gave him grief?

We need a bank teller! (This message is posted under my name, but I have days when I'm not really sure who I am!)

Reply by Teresa/FL on 12/7/10 5:02pm
Msg #364264

Every cashier's check I have seen has shown the name of the

purchaser (AKA remitter), who is theoretically the source of the funds. Why wouldn't that person be able to have the check voided and redrawn or the funds redeposited to his own account?

By the way, the only time I have seen cashier's checks made payable to the buyer is at real estate auctions. If the bidder is successful, they endorse it over to the auction company as part of the contract signing immediately after the winning bid.

Reply by PAW on 12/7/10 5:33pm
Msg #364266

Yes, even Cashiers Checks can be redeemed

A couple of times, I had to have cashiers checks drawn for a transaction I was about to complete. But the deals went south. Since the cashiers check had my name on it, and I had the receipt, and the bank had the transaction information, it was no problem redeeming it and having the funds, minus the fee, returned to my account.