Bulletin: MD2012006

Date:
July 02, 2012
To:
All Maryland Issuing Offices
RE:
Maryland Notice to Buyer Requirements

Dear Associates:

This Bulletin is being issued to remind all Maryland issuing agents that under Maryland Annotated Code, Insurance Article, Section 22-102, there is a requirement to issue a Statutory Notice to Buyer form for ALL residential real estate transactions involving a purchase money mortgage or deed of trust. We suggest that you utilize this form for both purchase and refinance transactions. You must maintain an original, signed statement of receipt for at least three years.

This document must contain the following:

(i) the name of each insured under the policy;

(ii) the face amount of the policy;

(iii) the buyer's right and opportunity to obtain simultaneous title insurance in the buyer's favor;

(iv) the additional premium that will be required for purchase of simultaneous title insurance in the buyer's favor;

(v) that the buyer's title insurance will be subject only to the contingencies and conditions contained in the binder, title report, and policy;

(vi) the buyer's right to review a sample of the form of policy in which the contingencies and conditions will be inserted; and

(vii) a clear statement of the contingencies that must be satisfied to make the buyer's policy effective, if the buyer's policy is not effective on payment of the premium.

Attached is a sample form for use in order to comply with this law.

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:
None
Related Bulletins:
None
Underwriting Manual:
None
Exceptions Manual:
None
Forms:
None