- August 22, 2007
- All Missouri Stewart Title Agents and Issuing Offices
- Husband and Wife; Deed of Trust; Tenants by the Entirety
Husband and Wife refinanced their home loan. The lender prepared the loan documents. The Deed of Trust defined the term "Borrower" as the male spouse, "a married man, as his sole and separate property," even though title was vested in tenants by the entirety. Both spouses attended the closing and both signed the deed of trust below the line for “borrower”. Both signed a settlement statement. Both initialed each page of the document. After Husband’s death, Wife filed an action to cancel the deed of trust. The Missouri Supreme Court held that the deed of trust was void because there was no conveyance and grant of the wife’s interest.
Company Policy: If you are insuring a deed of trust and title is vested in a man and woman who are husband and wife, both spouses must be the named Grantors/Borrowers/or Mortgagors so that both convey to the Lender and both must execute the instrument.
Thank you for your prompt and continuing attention to the matters addressed in this bulletin.
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.