Bulletin: WA000011

Date:
December 14, 1989
To:
All Washington Agents
RE:
Title Insurance

Dear Associates:

The Washington Court of Appeals has ruled that an extended owner's title insurance policy does not cover encroachments of improvements onto adjoining land. (Transamerica Title v. Northwest Building, 773 P.2d 431 (Wash. App. 1989).)

The title insurer successfully argued that its liability was limited to the land within the legal description insured and did not include property beyond those property lines. Hence, improvements located on adjoining property (i.e. encroachments) are not covered. Both the trial court and court of appeals agreed with the title insurer.

This ruling will require insureds to obtain endorsements to cover encroachments. Extended coverage will not be enough. I would anticipate requests for a modified 100 endorsement to be attached to extended ALTA owner's policies

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:
ALTA Owner's Policy 1992