Reissue Credit: What is Reissue Credit and Who is Eligible for Reissue Credit?
With good reason, one of the first questions people want answered when selling, buying or refinancing is regarding how they can save the most money. With such large transactions, it’s only smart to consider how it will affect your finances! Reissue credit, or reissue rate, is one of the most searched terms because of the financial savings it can bring when reissuing title insurance.
If you’re looking to sell, purchase or refinance a home, find out who is eligible and if you qualify for the discount. If you are selling property – because the seller typically pays for the Owner’s Policy of Title Insurance on behalf of the buyer – understanding the reissue rate is a hot money-saving topic.
What is Reissue Credit?
In brief, reissue credit is a discounted rate on a title insurance policy offered to those who can provide evidence that a previous title insurance policy was in place on the property being insured. If proof of a previous policy is provided, then the real estate being insured can qualify for a credit, or discount, toward the policy on the newly acquired or refinanced property.
Who Qualifies for Reissue Credit on Title Insurance?
The first qualifier for reissue credit is that the owner can provide the previous Owner’s Policy of Title Insurance that was issued when they purchased the property. Without this, there’s no proof of a previous policy and taking additional steps is not possible. If you have the policy in place, simply scan it and send it to your title agent. Beyond this, there are a few additional requirements in order to be considered eligible.
- The reissue rate is available for title policies on property which is unimproved or considered “vacant land”. This availability lasts for as long as it remains vacant.
- Unimproved property refers to real estate such as a vacant lot or other property on which immovable improvements have not been made. Immovable objects are permanent structures like pools, concrete slabs, and buildings. The exception to this rule is improvements made in relation to roads, bridges, drainage facilities or utilities which were facilitated by a local municipality and not the owner of the property. Items like fences, cars or boats are movable, so the addition of these movable objects would not void your eligibility for a reissue credit.
- The reissue credit is only available within 3 years of the exact date the previous policy was issued.
- NOTE: If you are refinancing, you automatically qualify for a reissue discount no matter how old the policy is or how many times you’ve refinanced on the policy. Title insurance agents are required by law to provide a reissue credit on the premium of your title insurance policy in a refinance. If you can produce a copy of the previous policy and get it into your agent’s hands, you qualify!
Examples of How Reissue Credit Works
- If you are selling a vacant lot you once planned to build upon, but ended up changing plans and building elsewhere – as long as you can provide the previous policy, you qualify for the reissue rate because the property has not been improved upon.
- You’ve incurred some recent expenses and plan to refinance your home of 20 years to help offset the costs (sending kids to college is expensive!) and you’re wondering if you qualify for the reissue credit. The answer is yes! Even if you’ve held your policy for more than 3 years, if you’re able to provide a copy of the owner’s policy to your title agent, you qualify for the discount on a refinance.
- You’re moving out of state for an incredible promotion and must sell your home. As long as you are selling a home in which you’ve only lived for 3 years or less and can provide the existing policy, you are eligible.
How Much of a Discount Do I Receive with a Reissue Credit?
How do you calculate a reissue rate? This is the golden question! To find out how much you qualify for, reach out to one of our trusted title agents today so you can start saving. Our advanced title calculator and trusted agents will help you understand your discounts with accuracy and speed, ultimately saving you money!
Supreme Title makes no representations or warranties with respect to the accuracy or completeness of the matters addressed.
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