- April 28, 2015
- All New Jersey Issuing Offices
- UNDERWRITING - Title Derived Through a Judgment Execution Sale
We have seen a rise in requests to insure property immediately after a judgment execution sale. This Bulletin is a reminder of our current underwriting guidelines. Because of the procedural intricacies that must be navigated and the fact that a judgment execution sale is susceptible to judicial attack on several grounds, Stewart considers insuring property out of a judgment execution sale to be an extra-hazardous risk. Underwriter approval is required before insuring.
The process to enforce judgments against real property in New Jersey is set forth in NJ Court Rule 4:59. A writ of execution is required and execution must first be made out of personal property before the filing of a motion, on notice, seeking an order allowing for the sale of real property.
We are aware of attempts to vacate orders of sale and set aside titles derived through judgment execution sales based upon the following arguments:
- Lack of validity of the judgment.
- Lack of legal right to commence execution.
- Improper or defective form of notice of levy.
- Improper or defective form of notice of issuance of execution.
- The real property is exempt from execution.
- Improprieties or irregularities exist in connection with the time, place and manner of sale.
- Prior to the sale the judgment debtor had been judicially declared incompetent.
- Prior to the sale the judgment debtor has filed Bankruptcy.
Please contact your local New Jersey underwriter before issuing a commitment to insure any transaction where a judgment execution sale appears in the chain of title.
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 http://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.