Closing Protection Letter (CPL)

A Closing Protection Letter (CPL) is a document issued by a bank or title insurer that provides assurance to a lender or closing agent during a real estate transaction. It guarantees that the closing process will be conducted properly and securely, protecting against certain risks like fraud, errors, or misconduct by the closing agent. If issues arise due to the closing agent’s actions, the CPL offers financial protection or coverage, ensuring the transaction proceeds smoothly and reducing the risk of financial loss for involved parties.