Real Estate CPS Document

REAL ESTATE CLOSING PROTECTION STATEMENT (CPS)

THIS CLOSING PROTECTION STATEMENT (the Statement) is issued as of Effective Date: by Issuer Name: (Issuer), to Beneficiary Name: (Beneficiary), concerning the proposed real estate closing to be conducted by Closing Agent: .

1. Parties

Issuer Address:

2. Property Identification

3. Transaction Details

Transaction Amount: $    Earnest Money: $

Proposed Closing Date:    Proposed Possession Date:

4. Statement of Protection

Subject to the terms and conditions set forth below, Issuer shall provide protection to Beneficiary against loss resulting from any of the following acts by the Closing Agent in connection with the above-referenced transaction:

• Fraudulent diversion of funds entrusted to the Closing Agent for closing;
• Forgery of Beneficiary's signature or forged documents presented to the Issuer;
• Failure of the Closing Agent to comply with written closing instructions of the Issuer as they relate to the disbursement of funds or delivery of instruments.

Coverage Requested (check applicable):  Protection for funds handled by Closing Agent Protection against disregard of Issuer written closing instructions Protection for document misdelivery or failure to record

5. Exclusions and Limitations

The protection provided by Issuer does not extend to losses arising from:

• Unauthorized acts by any party other than the Closing Agent or its employees;
• Errors in legal description, vesting, or boundary disputes unrelated to Closing Agent acts;
• Claims for consequential, punitive or exemplary damages;
• Any acts that occur after the Issuer has provided express written notice terminating coverage for the specified closing.

Unless otherwise agreed in writing, Issuer's liability under this Statement shall not exceed the lesser of the Limit of Liability set forth above or the actual direct loss sustained by Beneficiary, subject to the terms, conditions and exclusions herein.

6. Conditions and Requirements

Issuer's obligation to provide protection is conditioned upon Beneficiary's compliance with the following:

1. Beneficiary shall provide written notice to Issuer promptly upon discovery of any act or omission giving rise to a claim and shall cooperate fully in any investigation;
2. Beneficiary shall mitigate damages and provide documentation substantiating the claimed loss;
3. Any settlement or compromise of a claim by Beneficiary without Issuer's prior written consent relieves Issuer of responsibility for that portion of the claim.

7. Indemnity

Beneficiary agrees to indemnify and hold Issuer harmless from and against any claims, liabilities, costs or expenses (including reasonable attorney fees) arising out of Beneficiary's failure to comply with the conditions of this Statement or arising from claims excluded under Section 5.

8. Disclosures

Lead-Based Paint Present? Yes No

Mold or Water Intrusion Known? Yes No

Prior Material Damage or Repair? Yes No

9. Notices

Notices required under this Statement shall be in writing and delivered to the addresses set forth herein by hand delivery, nationally recognized overnight courier, or certified mail, return receipt requested. Notice to Issuer:

Notice to Beneficiary:

10. Governing Law and Entire Agreement

This Statement shall be governed by and construed in accordance with the laws of the State of without regard to conflict of law principles. This Statement constitutes the entire agreement between Issuer and Beneficiary with respect to the subject matter hereof.

11. Acceptance and Authorization

By signing below, the parties represent and warrant that they are duly authorized to execute this Statement on behalf of the named entities and that the information contained herein is true and correct. Acceptance by Beneficiary is effective upon receipt by Issuer of an executed copy of this Statement.

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