VT Insured Closing Letter
RE: Insured Closing Service
Dear Madam or Sir:
When title insurance of Stewart Title Guaranty Company (hereafter styled Company) is specified in connection with closings and/or escrows of real estate transactions in which you are to be the lessee, or purchaser of an interest in land or a lender secured by a mortgage, (including any other security instrument) of an interest in land, the Company subject to the Conditions and Exclusions set forth below, hereby agrees to reimburse you for actual loss incurred by you in connection with such closings and/or escrows when conducted by our approved agents above captioned, when such loss arises out of:
Failure of our agent to comply with your written closing and/or escrow instructions to the extent that they relate to (a) the status of the title to said interest in land or the validity, enforceability and priority of the lien of said mortgage on said interest in land, including the obtaining of documents and the disbursement of funds necessary to establish such status of title or lien, or (b) the obtaining of any other document, specifically required by you, but not to the extent that said instructions required a determination of the validity, enforceability or effectiveness of such other document, or (c) the collection and payment of funds due you.
If you are a lender protected under the foregoing paragraph, your borrower in connection with a loan secured by a mortgage on a one to four family dwelling shall be protected as if this letter were addressed to your borrower.
CONDITIONS AND EXCLUSIONS
A. The Company will not be liable to you for loss arising out of:
1. Failure of our approved agent to comply with your closing and/or escrow instructions which require title insurance protection inconsistent with that set forth in the title insurance binder or commitment issued by the Company. Closing and/or escrow instructions which require the removal of specific exceptions to title or compliance with the requirements contained in said binder or commitment shall not be deemed to be inconsistent.
2. Loss or impairment of your funds in the course of collection or while on deposit with a
bank due to bank failure, insolvency or suspension, except such as shall result from failure of our approved agent to comply with your written closing and/or escrow instructions to deposit the funds in a bank which you designated by name.
3. Mechanics’ and materialmen’s liens in connection with your purchase or lease or construction loan transactions, except to the extent that protection against such liens is afforded by a title insurance binder, commitment or policy of the Company.
B. If the closing and/or escrow is to be conducted by an approved agent, a title insurance binder or commitment for the issuance of a policy of title insurance of the Company must have been received by you prior to the transmission of your final closing and/or escrow instructions to the approved agent.
C. When the Company shall reimburse you pursuant to this letter, it shall be subrogated to all rights and remedies which you would have had against any person or property had you not been so reimbursed. Liability of the Company for such reimbursement shall be reduced to the extent that you have knowingly and voluntarily impaired the value of such right of subrogation.
D. Any liability of the Company for loss incurred by you in connection with closings and/or escrows of real estate transactions by our approved agent shall be limited to the protection provided by this letter. However, this letter shall not affect the protection afforded by a title insurance binder, commitment or policy of the Company.
E. Claims shall be made promptly to the Company at its National Office in Houston, Texas. When the failure to give prompt notice shall prejudice the Company, then liability of the Company hereunder shall be reduced to the extent of such prejudice. The Company shall not be liable hereunder unless notice of claim in writing is received by the Company within ninety (90) days from the date of discovery of loss. The Company shall not be liable hereunder unless notice of claim in writing is received by the Company at its Home Office in Houston, Texas, one year from the date of closing.
Any claim arising under this letter will be submitted to arbitration pursuant to the rules of the American Arbitration Association in that Region servicing the locale where the land lies.
Any previous Insured Closing Service Letter or similar agreement is hereby cancelled, except as to closings and/or escrow of your real estate transactions regarding which you have previously sent (or within 30 days hereafter send) written closing and/or escrow instructions to the issuing agent.
STEWART TITLE GUARANTY COMPANY
No guidelines are available for this form at this time.