Bulletin: IL2010003

Date:
June 08, 2010
To:
All Illinois Issuing Offices
RE:
Mechanic's Lien and Construction Coverage on Illinois Transactions

Dear Associates:

In the current economy projects that have problems with Mechanic's Lien claims have been and are appearing more often. Many of these projects have been Condominium Projects. These projects, in the majority of cases, are not complete and can have substantial amounts of liens on the property which would attach not only to the unfinished units but also can attach to the sold units. In Illinois the main issue is the lack of priority over the Mechanic's Lien. Therefore these liens could be valid liens against insured owners and their lenders which could be significant.

If you are issuing commitments, policies and/or closing transactions in Illinois and a Mechanic's Lien claim appears on the search it must be raised on title as an exception. If coverage is requested over these Mechanic's Liens you must contact Stewart Underwriting Personnel before proceeding to close and insure the title to the property without exception to or insuring over the Mechanic's Liens.

Please refer to Bulletins MU2008009 and SLS2009007.

If you have questions related to this bulletin, please contact your local underwriting personnel at 847-884-2336 or Stewart Legal Services.


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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:
MU2008009 Mechanic's Liens on Condominium Projects
 
SLS2009007 Mechanic's Liens Recap
Underwriting Manual:
None
Exceptions Manual:
None
Forms:
None