- March 04, 2015
- All California, Connecticut, District of Columbia, New Jersey, and Virginia Issuing Offices
- UNDERWRITING - Service Station Right of First Refusal
Local laws in the states of California, Connecticut, New Jersey, and Virginia grant franchise service station dealers the first right of refusal to purchase their business when the station's franchisor attempts to sell the business. The District of Columbia had a similar provision, which lapsed, but has been reintroduced.
In general, these states’ statutes provide that a service station franchisor must make an offer to transfer, assign, or sell the franchise to the franchisee before selling the franchise to an independent party.
You must obtain approval from a Stewart Underwriter before issuing on a service station located in any of the above-referenced states.
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 www.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.
- Bulletins Replaced:
- Related Bulletins:
- Underwriting Manual:
- 17.48 Right Of First Refusal
- Exceptions Manual: