FL Change of Partners, Members or Shareholders (Fairway) Endorsement 2 Guideline

Explanation:

The Fairway case suggests that an Owner's Policy does not continue "by operation of law" to cover a partnership after dissolution even if the business continues. As a result, the insured requests a Fairway Endorsement on many commercial transactions where the insured owner is a partnership (and often anticipates changes in partners), or similar entity.

This endorsement issued in conjunction with an Owner's Policy has been revised to include other types of business entities other than just general partnerships.  The endorsement provides coverage that Stewart Title Guaranty Company will not deny liability, under the terms of the policy due to the fact that the partnership, corporation, limited partnership, limited liability company or business trust has dissolved or a new entity has been created resulting from a change in the entities constituting any of these business entities. 

The minimum premium for this endorsement for residential property transactions is $25.00, and a minimum of $100.00 for commercial property.

Underwriting Requirements:

Secure approval from our Underwriting personnel to issue the endorsement.

The underwriting guidelines contained herein have been provided for general reference. The facts, circumstances, and location of the subject property should be considered when determining the issuance of the requested form or endorsement. Please note that all of the forms and endorsements included in this system may not be available in all states. Accordingly, please contact the appropriate Stewart Title Guaranty Company underwriting personnel in order to determine availability.

Compliance with the underwriting guidelines contained herein in no way obligates Stewart Title Guaranty Company to issue any form or endorsement.

This guideline applies to the following form(s):

FL Change of Partners, Members or Shareholders (Fairway) Endorsement 2