Bulletin: CO000023

Date:
April 07, 1999
To:
All Colorado Issuing Offices
RE:
Insuring Over Interests in Title

Dear Associates:

Stewart Title Guaranty Company requires that issuing offices within the state of Colorado comply with the provisions contained within Title Insurance Regulation 3-5-1 related to insuring over the possible adverse effects of any recorded lien, recorded encumbrance, or other recorded interest.

We refer you to the provisions within Title Insurance Regulation 3-5-1 which read as follows:

No title entity shall undertake to insure any person or entity against the possible adverse effect of any recorded lien, recorded encumbrance, or other recorded interest unless:

  1. Such title entity deletes such recorded lien, recorded encumbrance, or other recorded interest from the schedule of exceptions in its title commitment and has on hand funds, securities, a bonded obligation, or letter of credit payable to the order of said title entity, adequate to discharge such lien, encumbrance or other interest in the event said lien, encumbrance or other interest is perfected to the detriment or possible detriment of the person or entity insured, or any successor in interest to such person or entity; or

  2. Such title entity reflects such recorded lien, recorded encumbrance or other recorded interest in the schedule of exceptions in its title commitment, and such title entity receives an appropriate indemnity from the responsible party.

It is imperative whenever you are insuring over any recorded interest ("Interest") in title by obtaining an indemnity agreement that the Interest be listed in the title commitment to disclose the Interest to the proposed insured. Even if you have knowledge prior to the issuance of the title commitment that you have or will have an indemnity agreement, the Interest still must be placed on the title commitment as a Schedule B-I Requirement so that it is disclosed to the proposed insured.

If you have any questions in regard to this please feel free to contact Colorado District office.

THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

References

Bulletins Replaced:
None
Related Bulletins:
NL000022 Insuring Around
Underwriting Manual:
None
Exceptions Manual:
None
Forms:
None