NJ Closing Service Letter
STEWART TITLE GUARANTY COMPANY
THIS FORM MAY NOT BE REPRODUCED WITHOUT APPROVAL FROM STEWART TITLE GUARANTY UNDERWRITING PERSONNEL.
RE: Closing Service
Dear Madam or Sir:
When title insurance of Stewart Title Guaranty Company is specified for your protection in connection with closing of the above described real estate transaction in which you are to be a lender mortgage of an interest in land, the Company, subject to the Conditions and Exclusions set forth below, hereby agrees to reimburse you for actual loss incurred by you in connection with that closing when conducted by the above named Issuing Agent (an agent authorized to issue title insurance for the Company) of Stewart Title Guaranty Company or the above named Attorney when such loss arises out of:
1. Failure of the Issuing Agent or Attorney to comply with your written closing instructions to the extent that they relate to (a) the title to said interest in land or the validity, enforceability and priority of the lien of said mortgage on said interest in land, including the obtaining of documents and the disbursement of funds necessary to establish such of title or lien, or (b) the collection and payment of funds due you, or
2. Fraud or misapplication by the Issuing Agent or Attorney in handling your funds in connection with the matters set forth in paragraph 1 above.
If you are a lender protected under the foregoing paragraph, your borrower in connection with a loan secured by a mortgage on a one to four family dwelling, which is the principal residence of the borrower, shall protected, but only to the extent of the foregoing paragraph 2, as if this letter were addressed to your borrower. If you are a purchase of a one to four family dwelling, including a condominium unit, which is your principal residence, and are paying cash for the purchase, you are protected, but only to the extent of the foregoing paragraph 2.
CONDITIONS AND EXCLUSIONS
A. The Company will not be liable to you for loss arising out of:
1. Failure of the Issuing Agent or Attorney to comply with your closing instructions which require title insurance protection inconsistent with that set forth in the title insurance binder or commitment issued by the Company. Instructions which require the removal of specific exceptions to title or compliance with the requirements contained in said binder or commitment shall not be deemed to be inconsistent.
2. Loss or impairment of your funds in the course of collection or while on deposit with a bank due to bank failure, insolvency or suspension, except such as shall result from failure of the Issuing Agent or Attorney to comply with your written closing instructions to deposit the funds in a bank which you designated by name.
3. Mechanics' and materialmen's liens in connection with a construction loan transaction, except to the extent that protection against such liens is afforded by a title insurance binder, commitment or policy of the Company.
B. If the closing s to be conducted by an Issuing Agent or Attorney, a title insurance binder or commitment for the issuance of a policy of title insurance of the Company must have been received by you prior to the transmission of your final closing instructions to the Attorney.
C. When the Company shall have reimbursed you pursuant to this letter, it shall be subrogated to all rights and remedies which you would have had against any person or property had you not been so reimbursed. Liability of the Company for such reimbursement shall be reduced to the extent that you have knowingly and voluntarily impaired the value of such right of subrogation.
D. Any liability of the Company for loss incurred by you in connection with closings of real estate transactions by an Issuing Agent or Attorney shall be limited to the protection provided by this letter. However, this letter shall not affect the protection afforded by a title insurance binder, commitment or policy of the Company.
E. Claims shall be made promptly to the Company at its principal office at P.O. Box 2029 , Houston , Texas 77252 . When the failure to give prompt notice shall prejudice the Company, then liability of the Company hereunder shall be reduced to the extent of such prejudice.
F. Liability under this letter is limited to the amount of insurance committed for and is subject to all the Conditions and Stipulations of the policy or policies committed to be issued by the Company. All liability hereunder shall merge into the policy or policies when issued.
THIS LETTER DOES NOT APPOINT THE ABOVE NAMED ATTORNEY AS AN AGENT OF STEWART TITLE GUARANTY COMPANY.
The protection under this Closing Service Letter is limited to the closing on the premises described in the caption of this letter.
STEWART TITLE GUARANTY COMPANY
No guidelines are available for this form at this time.