Bulletin: MD2018001

Date:
January 23, 2018
To:
All Maryland Issuing Offices
RE:
RATES AND/OR FORMS UPDATE - New, Revised ALTA Forms (04-27-2017) Schedule Effective February 5, 2018

Dear Associates:

Stewart Title Guaranty Company has filed new or revised American Land Title Association (ALTA) forms with the Maryland Insurance Administration which are approved for use in Maryland.

1. ALTA Homeowner’s Policy of Title Insurance (12-02-13)

The ALTA Homeowner’s Policy of Title Insurance (12/02/13) is designed to incorporate the changes of the 2006 Owner’s Policy and improve the title insurance coverage given to the insured. The only changes in the 2013 Policy include: This policy clarifies coverage relating to trusts or estate planning entities within CONDITION 2.b. (3), and the following exclusions from coverage:

(8) Contamination, explosion, fire, flooding, vibration, fracturing, earthquake, or subsidence; and 

(9) Negligence by a person or an Entity exercising a right to extract or develop minerals, water, or any other substances was added.

2. ALTA Short Form Residential Limited Coverage Junior Loan Policy with addendum (04-02-13)

The ALTA Short Form Residential Limited Coverage Junior Loan Policy is the abbreviated short form version of the ALTA Residential Limited Coverage Junior Loan Policy (08-01-12) already filed and which includes the Insuring Provisions, Exclusions from Coverage, Conditions, and Schedule. The ALTA Residential Limited Coverage Junior Loan Policy insures against loss or damage incurred by reason of:

(1) the Grantee not being the named grantee on the last recorded deed;

(2) the Land not being the same as the land described in the last recorded deed;

(3) any Monetary Liens recorded in the Public Records; and

(4) any ad valorem taxes or assessments that appear in the tax records. 

This policy does not insure the validity of the insured's mortgage and it does not insure that the Grantee (who will generally be the mortgagor) owns the land. It does provide defense costs as stated and does insure a later owner of the debt secured by the insured's mortgage.

This form is issued before the Junior Mortgage is executed; it is similar to a commitment to insure. The addendum to the Short Form Residential Limited Coverage Loan Policy would be attached to the policy to show any special exceptions on a case by case basis, after the examination of title, such as liens or mortgages or deeds of record. These specialized items could change from each piece of property so the addendum allows us to refer to these title conditions as they relate to each specific property.

3. ALTA Endorsement 11.2-06 (Mortgage Modification with Additional Amounts of Insurance) (12-02-13)

This endorsement insures against loss or damage sustained by the Insured by reason of (a) The invalidity or unenforceability of the lien of the Insured Mortgage upon the Title as a result of the Modification; (b) The lack of priority of the lien of the Insured Mortgage over defects in or liens or encumbrances on the Title, (with exceptions, if any); (c) The failure of matters to be subordinate to the lien of the Insured Mortgage, (matters to be insured as subordinate should be specified, if any).

4. ALTA Endorsement 41-06 (Water-Buildings) (12-02-13)

This endorsement insures against loss or damage sustained by the Insured by reason of the enforced removal or alteration of any Improvement resulting from the future exercise of any right existing at Date of Policy to use the surface of the Land for the extraction or development of water excepted from the description of the Land or excepted in Schedule B.

5. ALTA Endorsement 41.1-06 (Water-Improvements) (12-02-13)

This endorsement insures against loss or damage sustained by the Insured by reason of the enforced removal or alteration of any Improvement, resulting from the future exercise of any right existing at Date of Policy to use the surface of the Land for the extraction or development of water excepted from the description of the Land or excepted in Schedule B.

6. ALTA Endorsement 41.2-06 (Water-Described Improvements) (12-02-13)

This endorsement insures against loss or damage sustained by the Insured by reason of the enforced removal or alteration of any Improvement resulting from the future exercise of any right existing at Date of Policy to use the surface of the Land for the extraction or development of water excepted from the description of the Land or excepted in Schedule B.

7. ALTA Endorsement 41.3-06 (Water-Land Under Development) (12-02-13)

This endorsement insures against loss or damage sustained by the Insured by reason of the enforced removal or alteration of an Improvement or a Future Improvement, resulting from the future exercise of any right existing at Date of Policy to use the surface of the Land for the extraction or development of water excepted from the description of the Land or excepted in Schedule B.

8. ALTA Endorsement 42-06 (Commercial Lender Group) (12-02-13)

This endorsement insures against loss or damage sustained by the Insured by reason of: (a) The invalidity or unenforceability of the lien of the Insured Mortgage caused by transfers after the Date of Policy of portions of the Indebtedness by the Participants; (b) Loss of priority of the lien of the Insured Mortgage, which loss of priority is caused by transfers after the Date of Policy of portions of the Indebtedness by the Participants.

9. ALTA Endorsement 43-06 (Anti-Taint) (12-02-13)

This endorsement insures against loss or damage sustained by the Insured by reason of the loss of priority of the lien of the Insured Mortgage, as security for the amount of the Indebtedness advanced as the Term Loan, resulting from reductions and subsequent increases of the outstanding principal amount of the Indebtedness payable as the Revolving Credit Loan.

10. ALTA Endorsement 44-06 (Insured Mortgage Recording) (12-02-13)

This endorsement insures against loss or damage sustained by the Insured by reason of the failure of the Insured Mortgage to have been recorded in the Public Records as set forth in Section 3 of the Endorsement. 

As a reminder, other forms should not be used if a comparable ALTA version is available. If a comparable ALTA version is available, the most current version of the ALTA form available in each state should be used, unless approved by a Stewart underwriter.

Please contact Property Info Customer Care or your title production software vendor to get the new forms uploaded to your system.    

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.