Bulletin: SLS2012009

Date:
July 03, 2012
To:
All Issuing Offices
RE:
Date of Policy on Schedule A

Dear Associates:

Bulletins issued prior to the introduction of the 2006 ALTA Owner’s and Loan Policies suggested that it was appropriate, with the customer’s approval, to insert the following phrase in Schedule A of the Policy, following the specific date of closing: "[specific date] or the date of recording of the insured [deed, if Owner’s Policy; mortgage, if Loan Policy], whichever is later."  The addition of this text to title policies based upon the ALTA 1992 forms provided gap coverage and enabled Issuing Offices to complete the title policy and deliver it to the customer prior to receiving the recorded documents back from the recording office.  

We previously advised you that Covered Risk 10 of the ALTA Owner's Policy 2006 and Covered Risk 14 of the ALTA Loan Policy 2006 provide gap coverage. Similar provisions exist in the current policy forms for Texas and New Mexico.  If you are providing gap coverage under any of these policies, you should do so solely by inserting the date of disbursement and delivery of all documents (i.e., the closing date) as the Date of Policy on Schedule A. You do not need to await recording information unless the closing instructions require that information on the Policy.  

This Bulletin advises you that it is neither necessary nor appropriate to add the previously-suggested phrase to Schedule A of any title policy based upon the ALTA 2006 Policy forms or the current versions of Texas and New Mexico policies.  This includes, for example, the ALTA Short Form Residential Loan Policy, where available, which incorporates by reference the terms and provisions of the ALTA Loan Policy 2006.  You should not add any additional language to the "Date of Policy" section of Schedule A without underwriter approval.  

Please note that it is still acceptable practice to wait until the documents are recorded, and to insert the recording date as the Date of Policy, if that is the custom in your jurisdiction. 

As a reminder, you should always record the documents promptly, preferably the same day as the closing, or at the latest, first thing the next morning.

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:
MU000021 Date of Policy (without recording information)
 
MU000029 Date of Owner Policy
Related Bulletins:
MU000032 Speeding Up the Policy: ALTA Short Form Residential Loan Policy (10/17/92); Date of Policy on Regular Owner's or Loan Policy [Partially Replaced]
 
SLS00307 2006 ALTA Forms
 
SLS2011006 Gap Coverage and Reducing the Gap
Underwriting Manual:
4.00 Date And Time Of Policy
 
7.00 Gap Insurance
Exceptions Manual:
None
Forms:
None