Bulletin: CA2012002

Date:
May 07, 2012
To:
All California Issuing Offices
RE:
California TSG, 11/4/11

Dear Associates:

Please click here for the latest version of the California Trustee Sale Guarantee – the CLTA Guarantee Form No. 22 (11-4-11).  There are a couple of minor changes from the 03-03-11 version, being references to statutory code sections in Schedule A.3.d.i and ii.   

We have received a number of requests for changes to this form based upon personal desires and customer requests.  While changes to the content of the form itself cannot be made, there are some notes, exceptions, and non-assurance information that can be added to meet customer requests and expectations.  They are as follows: 

There are requests for adding an address and an APN.  At the end of the legal description, there is a note that can be added.  See Exhibit A on the TSG attached for the NOTE that can be added after the end of the legal description. 

Almost everyone has requested that tax information be shown.  Taxes are specifically excluded pursuant to the Exclusions From Coverage, paragraph 2.g.  At the beginning of Schedule B, there is a note that can be added.  See Schedule B on the TSG attached for the Note that can be added in order to provide tax information, before the actual "Exceptions" begin. 

There are requests for the addition of Courtesy Notice information, being notice to those people or entities that have recorded matters junior to the deed of trust being foreclosed but not entitled to notice by statute.  You can add that courtesy notice information as paragraph 7 of the Information Notes Section.  Said paragraph should read as follows: 

7.  Courtesy Notifications for which the company assumes no liability for any inaccuracies in, or omissions from, the information provided below.

a.      The names of persons and addresses disclosed by the records examined, other than those to whom notice is required by Section 2924b of the Civil Code to be directed, who might be interested in receiving a copy of the Notice of Default and a copy of the Notice of Trustee’s Sale are: 

There are requests to eliminate Covenants, Easements or Defects recorded prior to the recordation of the deed of trust being foreclosed.  You can use the following language in the Exceptions Section to do so. 

Covenants, Conditions or Restrictions, if any, whether or not shown by the public records.

Easements, rights-of-way or servitudes, if any, whether or not shown by the public records.

Defects, liens or encumbrances recorded prior to the date of recordation of the deed of trust shown in paragraph ___ of Schedule B.

Sometimes a deed of trust appears prior to the deed of trust being foreclosed and it appears that such deed of trust should have been reconveyed pursuant to a previous transaction.  Requests have been made that we note that under the deed of trust in question.  When necessary, you can use the following language: 

Although no reconveyance or release of this deed of trust appears of record, there is reason to believe that it has been paid.  If we are provided a reconveyance, release, indemnification or evidence of payment, to our satisfaction, reference to this deed of trust will be removed from this Guarantee and/or from a subsequent policy of title insurance should such policy be issued.

A TSG is not to be used as a starter.

TSGs issued in amounts over your authority require Stewart Title Guaranty underwriter approval.  You must complete the STG Request for Approval to issue Over Limits (Large) Policy (the most current form on Virtual Underwriter, currently dated 7-6-11) and submit to Underwriting.  This form must be completed, including the dates searched portion, and signed.  Do not release/deliver the TSG to the customer before the approval has been signed.

Issuance of a TSG does not mean that the company will issue a subsequent policy of title insurance on the property, such as following a trustee’s deed upon sale, or a deed in lieu of foreclosure.  Nothing should be communicated to customers which might cause them to infer that by issuance of the TSG, the company will be willing to issue subsequent insurance.  And of course, any subsequent insurance over your authority must be approved by submission of a new complete request for approval.

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.

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:
CA2011002 Trustee Sale Guarantees
Related Bulletins:
CA2011001 California Land Title Association Trustee's Sale Guarantee
 
SLS2010023 Insuring at or after Mortgage or Deed of Trust Foreclosure
Underwriting Manual:
None
Exceptions Manual:
None
Forms:
None