Why Title Insurance is an Essential Business
Late last week, Illinois Governor JB Pritzker issued Executive Order 2020-10 in response to the COVID-19 pandemic. This order implemented a stay-at-home mandate, emphasized social distancing, and identified essential businesses permitted to remain operational. The order took effect on Saturday, March 21, 2020, at 5:00 PM and is set to continue through April 7, 2020.
Among the businesses deemed essential are title insurance companies. Under Section 12 of the executive order, titled "Essential Businesses and Operations," real estate services, including appraisal services and title insurance companies, are classified as professional services that can remain open throughout the order's duration.
Why Real Estate Is Essential
Real estate is considered essential for a fundamental reason: people need housing. Despite the economic challenges posed by the pandemic, the demand for housing persists. While the executive order paused evictions, it did not halt new real estate transactions. This allows individuals and families to continue moving into homes as needed.
Many real estate transactions, whether rental or purchase-related, were already in progress before the stay-at-home order or even before the outbreak began. Additionally, the Federal Reserve’s recent decision to reduce interest rates to near zero aims to keep the real estate market active by making mortgages more affordable.
Title Insurance’s Critical Role
The real estate industry faces uncertainty due to potential high unemployment rates stemming from the pandemic response. However, with historically low interest and mortgage rates, the Federal Reserve hopes to sustain activity in the housing market for as long as possible. Title insurance companies play a key role in ensuring these transactions are smooth and secure.
While real estate professionals are urged to follow social distancing guidelines during client meetings and home showings, the industry remains open for business. Title insurance is a vital component of this process, providing buyers and lenders with peace of mind that property ownership is free from legal complications.
Even as title insurance companies adjust their operations to mobile or remote formats, they remain committed to guiding clients through the home-buying process. Rest assured, they are here to help, ensuring your real estate transactions are safe and successful.
For further information on essential real estate businesses, get in touch with one of the title and escrow specialists at Plymouth Title Guaranty Corporation.
Please note: The safety of our staff and clients is our highest priority. Effective immediately, Plymouth Title Guaranty Corp. will be taking the following precautions to limit the spread of the COVID-19 virus:
All purchase transactions need to take place at a Plymouth Title Guaranty Corp. closing office
If a party to the closing is not feeling well, please contact your closer prior to the closing so appropriate precautions can be taken;
We ask visitors to utilize the restroom in our building upon arrival to thoroughly wash hands before entering our office;
Only individuals required to sign and/or deliver documents at closings will be allowed in our office. Specifically, closings will be limited to borrower(s), seller(s), agents, and lenders;
All pens used in the closing will be given to the client after use;
All closing rooms will be cleaned and disinfected in-between each closing;
Those picking up checks at our office will be instructed to call our main line and request to speak to a staff member who will make arrangements for delivery to the lobby or parking lot of our office; and
All staff will refrain from shaking hands before or after closings and ask clients do the same
Please be advised that our staffing may be impacted during this unprecedented event. While we are committed to continuing to provide outstanding service, we ask for your patience in the face of this pandemic.
This is a fluid situation and we will continue to adjust our protocols as necessary while following the CDC guidelines.
