Bulletin: MU000024

Date:
July 15, 1998
To:
All Affiliated Offices in Arizona, California, Hawaii, Saipan, Guam, Colorado, Idaho, Montana, North Dakota, South Dakota, Utah and Wyoming
RE:
Escrow/Title Instructions Language

Dear Associates:

 

Sometimes the language of escrow instructions we receive (or title instructions) is too broad, too undefined, too unrelated to our escrow or title functions so that we will have to decline to agree to the language as it appears in the escrow or title instructions.

For example: If you receive language in escrow instructions like the language which follows, do not agree to comply with the duties imposed by the language. See underwriting personnel for guidance. Here's and example of language too broad in meaning - under ordinary circumstances:

"4. Please also help us verify that the [buyer] will be receiving good and marketable title. If you know of liens, encumbrances, clouds, assessments, restrictions, coventnats or conditions, whether of record or not, which are enforceable against the property and which the Title Company does not intend to mention as exceptions to coverage under the final policy of title insurance, you must notify us so we can make an independent judgment of whether title to the property is marketable."

The difficulty with this instruction is understanding the meaning of simple works like (1) "verify": (2) "good" (3) "If you know of..." (4) "clouds" (5) "enforceable" etc.
If you have doubts about the meaning of the language in escrow instructions or tile instructions and/or what inferences might conceivably be drawn from the language in either, telephone our underwriting personnel.

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