Bulletin: MU000009

Date:
July 19, 1993
To:
All Issuing Offices in Arizona, Arkansas, California, Delaware, Georgia, Hawaii, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maine, Maryland, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Utah, Vermont, Virginia, Wisconsin, Wyoming
RE:
ALTA Condominium Endorsement 4
Dear Associates:

Paragraph 4 of the ALTA Condominium Endorsement (Form 4) insures against loss because of the priority of a maintenance assessment lien over the insured mortgage. In your states, a first mortgage has priority over subsequent condominium assessments. In many states, a second mortgage does not have priority.

Company Policy:

To issue the Condominium Endorsement 4, comply with our Underwriting Manual Guidelines on condominiums (Condominiums 3.40.17).

If you insure a second mortgage on a condominium, delete paragraph 4 of the Endorsement Form 4. If you issue the Short Form Loan Policy, Comprehensive Endorsement, or ALTA Endorsement Form 9 on second liens on condominiums, add the following exception:

"The Policy and any endorsements to the Policy do not insure against loss because of condominium assessments not yet due and payable."

Attached is the rate filing for your state where applicable.

ALTA 4 Form - Condominium Endorsement

StateRate

Arizona

California
Idaho
Kentucky
Maine
Maryland
Mississippi
Montana
Nebraska
New Hampshire
New Jersey
New Mexico
South Carolina
Tennessee
Utah
Wyoming

$0 if issued with policy, $50 if issued after policy

$25
$35 on Residential; $50.00 on Commercial Property
Determined by the Agent depending on the attendant risk
$25
$15
$15
$25
$25
$25
$25
$25
$10
$15
Commercial 20% of the basic schedule of charges with $50 min. and Residential $20
10% with $25 min

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:
None
Underwriting Manual:
3.40 Condominiums
Exceptions Manual:
Condominiums
Forms:
ALTA Endorsement 4 (Condominium)