CLTA Litigation Guarantee Guideline 1
Explanation:A Litigation Guarantee is designed for issuance to an attorney representing the plaintiff in an action affecting land. Typical litigation includes actions to quiet title, foreclosure of liens, condemnation and declaratory relief. A decree in any such action is binding only of the parties named as defendants. Therefore, it is essential that the attorney determine the existence and identity of all the parties that must be sued in order to achieve the purpose of the litigation. In many cases the plaintiff's attorney will wish to consult with the title company to explain the purpose of the proposed action and to tailor the Litigation Guarantee to accomplish this purpose. The nature of the action should be disclosed in Schedule A, Paragraph 3.
The Guarantee sets forth in Schedule A, paragraph 5 the name of the current record owner of the land that is the subject of the action. The Guarantee also sets forth in Schedule B all defects, liens and encumbrances of record which affect title.
Schedule B is divided into two parts. Part II of Schedule B assures the names and identities of current interest holders that the attorney will most likely wish to name as parties defendant in the action. Schedule, B, Part I also lists current interest holders but no assurance is given as to whether they should be joined as parties defendant in the action.
Schedule C provides the return address after mailing of recorded documents as to the vestees shown in Schedule A and the current interest holders as shown in Part II of Schedule B.
The Litigation Guarantee Endorsement (Revised 6-6-92) may be used in down dating the Guarantee or in amending the Guarantee to reflect curative actions that have been taken.
The Guarantee Conditions and Stipulations (Revised 6-6-92) must be used with this Guarantee.
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):