Property Owner
FAF International's real estate portfolio insurance insures real estate assets or mortgage portfolios, insuring legal ownership risks and defects in the mortgage security.
The insurance is used to de-risk the process so that the purchase, refinancing and securitisation/syndication of property portfolios can be executed more efficiently, at a lower cost and with the safety net of an insurance policy standing behind legal due diligence.
Property owners can benefit from an enhancement in value as all assets are insured, even if only a sample have been examined, as well as potentially more attractive terms in the difficult current financial climate.
Lenders are able to deliver solutions to their clients quickly, whilst safe in the knowledge that they are lending against full value, with unencumbered mortgage security.
By providing a quick and safe alternative to conventional due diligence, transaction lawyers can focus on other more complex aspects of the deal, and the parties involved are not forced to "take a view" on risks without any protection.
By reducing the time and cost of basic due diligence, investors and lenders can improve their chances of success when competing for new business.
With fewer due diligence requirements, investors can negotiate unambiguous and improved deals and sellers can achieve a quicker and cleaner exit by avoiding the need to provide usual warranties concerning legal ownership. With valuers basing their valuations on clean legal ownership, we have first hand experience of the impact that our insurance can have on the sale price of properties.