Frequently Asked: Why do I need a gap endorsement? In Wisconsin, our most recent form revisions included a provision that was new to many--the "Gap Endorsement", to be paid for by Buyer or Seller, unless stricken from the contract.
Isn't my title insurance enough? Title insurance is an insured statement of the condition of ownership rights to a certain piece of property
NO. A gap endorsement is an inexpensive way to ensure a safe transaction and your piece of mind. Sellers, we aren't questioning your integrity--we are just putting in an additional provision for the safety of all parties involved in a transaction.
A gap indorsement is ADDITIONAL insurance. A gap endorsement policy gives coverage against intervening adverse matters affecting title which are recorded or filed between the date of commitment and the recording of the documents. Perhaps the Buyer took out a Home Equity Loan that hasn't been substantially recorded. Perhaps there are contractor liens on the property that will come up after closing.
In this day and age with the amount of short sales and bank owned properties with extenuating issues, it’s more important than ever to adequately protect against liens or unpaid debts that a Seller may have occurred---intentionally or unintentionally.
A gap endorsement helps protect home buyers against these difficult issues.
Why do I need a gap endorsement for my Door County property? For your piece of mind--and ours.