Bulletin: NY000093

Date:
July 26, 1995
To:
All Office Counsel, Underwriters and Agents
RE:
Homeowners Association Assessments Douglas Manor Association, Inc. Queens County, NY

Dear Associates:

In November, 1994, underwriting Bulletin No. NY000071 entitled Homeowner Association Assessments, contained a good discussion of homeowners association assessments and the proper underwriting procedure to be used in connection with such assessments. Unfortunately, attorneys representing such associations, unsatisfied with the notice provided by recording the Declaration against the property to be burdened by its provisions, have begun to routinely send out letters to all title insurance companies "shotgun" style, to draw attention to the potential lien of the Homeowner's Association for unpaid assessments.

Although we do not condone or endorse this type of practice, we do want to make sure that all offices and agents are aware of the lien potential on homeowners' association properties when it comes to our attention. Accordingly, please be advised that we have recently received a letter from an attorney purporting to represent the Douglas Manor Association, Inc. (Douglas) in which the Declaration establishing the Association was recorded on 7/19/06 in Liber 1457, Page 389 in Queens County.

If you have any titles in the Douglas Manor Association area, you should follow the underwriting procedure set forth in Bulletin NY000071 , i.e., except the terms, provisions and conditions of the recorded Declaration which establishes the Association, note that there is a clause (if one exists) which provides that unpaid assessments will be a lien against the property, and require proof that all assessments have been paid to date of closing. A letter from the Homeowner's Association setting forth the amount due (which must be collected and paid at closing) or stating that no assessments are due should be obtained and delivered to the title Agent or Company in this regard.

Should you have any questions, please contact the undersigned.

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:
NY000071 Homeowner Association Assessments
Underwriting Manual:
3.76 Covenants, Conditions, And Restrictions
 
8.04 Homeowners' Associations
Exceptions Manual:
NY Covenants, Conditions, and Restrictions
Forms:
None