Standard Exceptions and Requirements

Standard exceptions are:

1.  Defects, liens, encumbrances, adverse claims or other matters, if any, created, first appearing in the Public Records or attaching subsequent to the effective date hereof but prior to the date the Proposed Insured acquires for value of record the estate or interest or mortgage thereon covered by this Commitment.

2.  Rights or claims of parties in possession not recorded in the Public Records.

3.  Easements or claims of easements, not recorded in the Public Records.

4.  Encroachments, overlaps, boundary line disputes, or other matters which would be disclosed by an accurate survey and inspection of the premises.

5.  Any lien, or right to a lien, for services, labor or material heretofore or hereafter furnished, imposed by law and not recorded in the Public Records.

6.  Any reappraisal, adjustment, and/or escape taxes which may become due by virtue of any action of the Tax Assessor, Tax Collector, or Board of Equalization.

7.  Taxes or special assessments which are not shown as existing liens by the Public Records.

8.  All taxes for the year (year of closing) and subsequent years, which are liens, but are not yet due and payable.

9.  Minerals of whatsoever kind, subsurface and surface substances, including but not limited to coal, lignite, oil, gas, uranium, clay, rock, sand and gravel in, on, under and that may be produced from the Land, together with all rights, privileges, and immunities relating thereto, whether or not appearing in the Public Records or listed in Schedule B. The Company makes no representation as to the present ownership of any such interests. There may be leases, grants, exceptions or reservations of interests that are not listed. 

1. Rights or claims of parties in possession not shown by the Public Records.

2. Easements, or claims, of easement, not shown by the Public Records.

3. Encroachments, overlaps, boundary line disputes, or other matters which would be disclosed by an accurate survey or inspection of the Land.

4. Any lien, or right to a lien, for services, labor, or material heretofore or hereafter furnished, Imposed by law and not shown by the Public Records.

5. Taxes or special assessments which are not shown as existing liens by the Public Records.

6. (a) Unpatented mining claims; (b) Reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c)Water rights, claims or title to water, whether or not the matters excepted under (a), (b) or (c) are shown by the Public Records.

7. Rights of the state or federal government and/or public in and to any portion of the land for right of way as established by federal statute RS 2477 (whether or not such rights are shown by recordings of easements and/or maps in the Public Records by the State of Alaska showing the general location of these rights of way).

8. Minerals of whatsoever kind, subsuface and surface substances, including but not limited to coal, lignite, oil, gas, uranium, clay, rock, sand, and gravel in, on, under and that may be produced from the Land, together with all rights, privileges, and immunities relating thereto, whether or not appearing in the Public Records or listed in Schedule B. The Company makes no representation as to the present ownership of any such interests. There may be leases, grants, exceptions or reservatoins of interest that are not listed.

9. RESERVATIONS and excetions as contained in U.S. Patent, and/or acts authorizing the issuance thereof.

1. Any defect, lien, encumbrance, adverse claim, or other matter that appears for the first time in the Public Records or is created, attaches, or is disclosed between the Commitment Date and the date on which all of the Schedule B, Part I - Requirements are met.

2. Taxes and assessments collectible by the County Treasurer, not yet due and payable for 202__ [THE CURRENT TAX YEAR – to be updated as needed].

3. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the Public Records. Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings whether or not shown by the records of such agency or by the Public Records.

4. Any facts, rights, interest or claims which are not shown by the Public Records but which could be ascertained by an inspection of the land or by making inquiry of persons in possession thereof.

5. Easements, liens or encumbrances, or claims thereof, which are not shown by the Public Records.

6. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the Public Records.

7. (a) Unpatented mining claims,

    (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof,

    (c) water rights, claims or title to water.

8. Any right, title, interest, estate or easement in land beyond the lines of the area specifically described or referred to in Schedule A, or in abutting streets, roads, avenues, alleys, lanes, ways or waterways, but nothing in this paragraph shall modify or limit the extent to which the ordinary right of an abutting owner for access to a physically open street or highway is insured by this policy.

 9. Any lien, or right to a lien, for services, labor or material heretofore or hereafter furnished, imposed by law and not shown by the Public Records.

 10. Minerals of whatsoever kind, subsurface and surface substances, including but not limited to coal, lignite, oil, gas, uranium, clay, rock, sand and gravel in, on, under and that may be produced from the land together with all rights, privileges and immunities relating thereto, whether or not appearing in the Public Records or listed in Schedule B. The Company makes no representation as to the present ownership of any such interests. There may be leases, grants, exceptions or reservations of interests that are not listed.

 11. Rights of parties in possession. 

Standard Exceptions:

1.  Defects, liens, encumbrances, adverse claims, or other matters, if any, created, first appearing in the public records or attaching subsequent to the effective date hereof but prior to the date the proposed Insured acquires for value of record the estate or interest or mortgage thereon covered by this Commitment.

2.  Rights or claims of parties in possession not recorded in the Public Records.

3.  Easements, or claims of easements, not recorded in the Public Records.

4.  Encroachments, overlaps, boundary line disputes, or other matters which would be disclosed by an accurate survey or inspection of the land.

5.  Any lien, or right to a lien, for services, labor, or material heretofore or hereafter furnished, imposed by law and not shown by the Public Records.

6.  The rights of dower, curtsey, homestead and other marital rights of the spouse, if any, of any individual insured.

7.  Taxes or special assessments which are not shown as existing liens by the Public Records.

8.  General Taxes and Special Assessments, if any, for the year 2020 and subsequent years not yet due and payable.

9.  Minerals of whatsoever kind, subsurface and surface substances, including but not limited to coal, lignite, oil, gas, uranium, clay, rock, sand and gravel in, on, under and that may be produced from the Land, together with all rights, privileges, and immunities relating thereto, whether or not appearing in the Public Records or listed in Schedule B. The Company makes no representation as to the present ownership of any such interests. There may be leases, grants, exceptions or reservations of interests that are not listed.

10.  Loss arising from security interest evidenced by financing statements filed of record under the Uniform Commercial Code and Judgment Liens and other liens of record in any United States District Court or Bankruptcy Court. 

Requirements:

A properly executed and recorded deed, mortgage or deed of trust. A proper satisfaction and release of a deed of trust or mortgage are some standard requirements.

When issuing a Preliminary Report, title commitment, binder or proforma policy in contemplation of the issuance of a CLTA Standard Coverage Policy or an ALTA standard policy, and upon issuance of that policy, the following seven Western Regional Exceptions are required to be reflected in Schedule B:

Western Regional Exceptions:

1. (a) Taxes or assessments that are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the Public Records; (b) proceedings by a public agency that may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the Public Records.

2. Any facts, rights, interests, or claims that are not shown by the Public Records at Date of Policy but that could be (a) ascertained by an inspection of the Land, or (b) asserted by persons or parties in possession of the Land.

3. Easements, liens or encumbrances, or claims thereof, not shown by the Public Records at Date of Policy.

4. Any encroachment, encumbrance, violation, variation, easement, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and not shown by the Public Records at Date of Policy.

5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the Public Records.

6. Any lien or right to a lien for services, labor, material or equipment unless such lien is shown by the Public Records at Date of Policy.

7. Any claim to (a) ownership of or rights to minerals and similar substances, including but not limited to ores, metals, coal, lignite, oil, gas, uranium, clay, rock, sand, and gravel located in, on, or under the Land or produced from the Land, whether such ownership or rights arise by lease, grant, exception, conveyance, reservation, or otherwise; and (b) any rights, privileges, immunities, rights of way, and easements associated therewith or appurtenant thereto, whether or not the interests or rights excepted in (a) or (b) appear in the Public Records or are shown in Schedule B.

When issuing a Preliminary Report, title commitment, binder or proforma policy in contemplation of the issuance of an ALTA extended policy or a Homeowner’s Residential Policy, and upon issuance of that policy, the following General Mineral Exception and General Water Exception are required to be reflected as separate exceptions in Schedule B:

GENERAL MINERAL EXCEPTION:

Any claim to (a) ownership of or rights to minerals and similar substances, including but not limited to ores, metals, coal, lignite, oil, gas, uranium, clay, rock, sand, and gravel located in, on, or under the Land or produced from the Land, whether such ownership or rights arise by lease, grant, exception, conveyance, reservation, or otherwise; and (b) any rights, privileges, immunities, rights of way, and easements associated therewith or appurtenant thereto, whether or not the interests or rights excepted in (a) or (b) appear in the Public Records or are shown in Schedule B.

GENERAL WATER EXCEPTION:

Water rights, claims, or title to water, whether or not shown by the Public Records.

Standard exceptions, shown below:

• Rights or claims of parties in possession not shown by the public records.
• Easements, or claims of easements, not shown by the public records.
• Encroachments, overlaps, boundary line disputes, or other matters which would be disclosed by an accurate survey and inspection of the subject property.
• Any lien, or right to a lien, for services, labor, or material hereto or hereafter furnished, imposed by law and not shown by the public records.
• Taxes or special assessments which are not shown as existing liens by the public records.

Additional standard exceptions include: 6. unpatented mining claims, reservations or exceptions in patents or in acts authorizing the issuance thereof; and 7. water rights, claims or title to water.

Ordinarily, requirements are customized depending on the circumstances affecting the transaction.

The standard general exceptions are:

Liens for all real estate taxes and assessments for the year October 1, ______ and all subsequent years, which are not yet due and payable. [Requires confirmation that all prior taxes are paid.]

Encroachments, overlaps, boundary line disputes, or other matters which would be disclosed by an accurate survey and inspection of the Land.

Easements, or claims of easements, not shown by the Public Records.

Rights or claims of parties in possession not shown by the Public Records.

Any lien, or right to a lien, for services, labor, or material heretofore or hereafter furnished, imposed by law and not shown by the Public Records.

Standard Exceptions

1. Defects, liens, encumbrances, adverse claims or other matters, if any created, first appearing in the public records or attaching subsequent to the effective date hereof but prior to the date the proposed insured acquires for value of record the estate or interest or mortgage thereon covered by this Commitment.
2. Rights or claims of parties in possession not shown by the public records.
3. Encroachments, overlaps, boundary line disputes, or other matters which would be disclosed by an accurate survey and inspection of the premises.
4. Easement or claims of easement, not shown by the public records.
5. Any lien, or right to a lien, for services, labor, or material heretofore or hereafter furnished, imposed by law and nor shown by the public records.
6. Taxes or special assessments which are not shown as existing liens by the public records.

Acreage or accuracy of area content not insured. Standard Requirements

1. Payment to or for the account of the grantors or mortgagors of the full consideration for the estate or interest to be insured.

2. Proper instrument(s) creating the estate or interest to be insured must be executed and duly filed for record, to-wit.

a. DEED FROM: DEED TO:

b. MORTGAGE FROM: MORTGAGE TO:

3. Copy of Completed Settlement Statement to be filed with this Company.

4. Payment of all taxes, charges, assessments, levied and assessed against subject premises, which are due and payable.

5. Satisfactory evidence should be had that improvements and/or repairs or alterations thereto are completed; that contractor, subcontractors, labor and materialmen are all paid.

6. Taxes and Assessments

Tax ID #

STANDARD EXCEPTIONS

• Rights or claims of parties in possession not recorded in the public records.
• Easements, or claims of easements, not recorded in the public records.
• Encroachments, overlaps, boundary line disputes, or other matters which would be disclosed by an accurate survey and inspection of the subject property.
• Any lien, or right to a lien, for services, labor, or material hereto or hereafter furnished, imposed by law and not recorded in the public records.
• Taxes or special assessments which are not recorded as existing liens by the public records.

We require our agents to take exception for water and sewer liens since these have super priority just like real estate taxes. We also require our agents to take exception for tenant purchase rights if the property is a residential rental property.

Standard exceptions used in Florida:

Rights or claims of parties in possession not shown by the public records.

Easements or claims of easements not shown by the public records.

Encroachments, overlaps, boundary line disputes or other matters which would be disclosed by an accurate survey and inspection of the premises.

Any lien, or right to a lien for services, labor or material heretofore or hereafter furnished, imposed by law and not shown in the public records.

Any adverse ownership claim by the State of Florida by right of sovereignty to any portion of the lands insured there under including submerged, filed and artificially exposed lands and lands accreted to such lands.

Note: If the insured property either does not have a natural body of water on it or is not located next to a natural body of water, this exception can be deleted.)

Note: Please keep in mind that when a standard exception is deleted on the mortgagee policy, it should also be deleted on the owner’s policy. Both policies should contain the same standard exceptions.

Standard Exceptions:

(a) Rights or claims of parties in possession not shown by the public records.

(b) Easements, or claims of easements, not shown by the public records.

(c) Encroachments, overlaps, boundary line disputes, or other matters which would be disclosed by an accurate survey and inspection of the premises.

(d) Any lien, or right to a lien, for services, labor or material heretofore or hereafter furnished, imposed by law and not shown by the public records.

(e) Taxes or special assessments which are not shown as existing liens by the public records.

Special Exceptions:

1. Taxes for the current year and subsequent years a lien not yet due and payable and any additional taxes, interest and/or penalties which may be assessed for prior tax years by virtue of adjustment, re-appraisal, re-assessment, appeal or other amendment to the tax records of the city or county in which the insured property is located.”

The following are the requirements to be complied with:

1. Instruments necessary to create the estate or interest to be insured must be properly executed, delivered and duly filed for record.
2. Pay the full consideration for the interest in the land and/or mortgage to be insured.
3. Pay the Company the premium, fees and charges for the Policy to be issued pursuant hereto.
4. Execution by Owner/Seller/Contractor an Affidavit as to Debts and Liens or Affidavit and Indemnity.
5. Receipt of proof satisfactory to the Company that no improvements or repairs were made on caption property within ninety-five (95) days preceding the filing for record of the instrument(s) required at Item 1 above, or, in the event such improvements or repairs were made, that they have been completed and all costs incurred in connection therewith, including architect’s fees, if any, have been paid; and that there are not parties in possession or with a right to possession other than Seller / Mortgagor. In the event that improvements or repairs were made on the property within 95 days preceding the closing and a general contractor was employed in connection therewith, in addition to the owner’s affidavit required as item 4 above, the Company further requires a sworn Affidavit, Lien Subordination and Indemnity of the General Contractor, executed pursuant to Georgia statute, which identifies all subcontractors, material suppliers, and labors, a copy of which must be furnished for our file. Also the Company must be provided with lien subordinations or Final Lien Waivers from all subcontractors, material suppliers, and labors listed in the General Contractor’s Affidavit.
6. Proof satisfactory to the Company, that all taxes or special assessments, including water bills, which are not shown as existing liens on the public record are paid in full at the time of closing. Upon receipt of such proof, Item (e) of the Standard Exceptions in Part II, Schedule B will be deleted or amended in accordance with the facts shown thereby.

On commercial transactions only, the following requirement needs to be added:

“The Commercial Real Estate Broker Lien Act applies to a sale, lease, option, loan or other transfer of commercial real estate; therefore, disclosure by the seller and buyer (lessor and lessee) or by the borrower when there is no sale required, in affidavit form stating (1) whether or not broker’s services have been engage with regard to the management, sale, purchase, lease, option or other conveyance of any interest in the Property and (2) whether or not a notice of lien for any such services has been received. Where the possibility of a right to file a broker’s lien exists, satisfaction (waiver, estoppel statement and payment) of such a lien right must occur prior to or at closing. If not so satisfied, an exception to any such right to a broker’s lien will appear in Schedule B of the Policy.”

[Record any other matters here]

Standard exceptions are:

1. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public records.

2. Any facts, rights, interests or claims which are not shown by the public records but which could be ascertained by an inspection of the land or by making inquiry of persons in possession thereof.

3. Easements, liens or encumbrances, or claims thereof, which are not shown by the public records.

4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records.

5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water.

6. Any lien, or right to a lien, for service, labor or material theretofore or hereafter furnished, imposed by law and not shown by the public records

The above standard exception items one through six will be deleted in any extended coverage Loan policy or Homeowners policy issued.

Standard requirements are:

1. Pay the agreed amounts for the interest in the land and/or the mortgage to be insured.

2. Pay the premiums, fees and charges for the policy.

3. Documents satisfactory to us creating the interest in the land and/or the mortgage to be insured must be signed, delivered and recorded.

4. You must tell us in writing the name of anyone not referred to in this Commitment who will get an interest in the land or who will make a loan on the land. We may then make additional requirements or exceptions.

5. Payment of all taxes, charges, assessments levied and assessed against the subject premises, which are due and payable.

The standard general exceptions are:

A title insurance policy that includes the standard regional exceptions in Schedule B of the Owner’s Policy and Lender’s Policy.

1) Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by public record

2) Any facts, rights, interests, or claims which are not shown by the public records, but which could be ascertained by an inspection of the land or by making inquiry of persons in possession thereof.

3) Easements, liens, or encumbrances, or claims thereof, which are not shown by the public records.

4) Discrepancies, conflicts in boundary lines, shortages in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records.

5) (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b) or (c) are shown by the Public Records.

6) Any lien or right to a lien for services, labor, equipment, or material heretofore or hereafter furnished, imposed by law and not shown by the public records.

7) Any defect, lien, encumbrance, adverse claim, or other matter that appears for the first time in the Public Records or is created, attaches, or is disclosed between the Commitment Date and the date on which all of the Schedule B, Part I - Requirements are met.

8) Rights of the state or federal government and/or public in and to any portion of the land for right of way (whether or not such rights are shown by recordings of easements and/or maps in the Public Records by the State of Idaho showing the general location of these rights of way).

9) Mineral Exception. In addition to the above 8 exceptions, the following mineral exception shall be included in all commitments and policies unless Underwriter approval to delete the same is obtained. "Minerals of whatsoever kind, subsurface and surface substances, including but not limited to coal, lignite, oil, gas, uranium, clay, rock, sand and gravel in, on, under and that may be produced from the Land, together with all rights, privileges, and immunities relating thereto, whether or not appearing in the Public Records or listed in Schedule B. Stewart makes no representation as to the present ownership of any such interests. There may be leases, grants, exceptions or reservations of interests that are not listed." 

1. Rights or claims of parties in possession not shown by the Public Records.
2. Easements, or claims of easements, not shown by the Public Records.
3. Encroachments, overlaps, boundary line disputes, or other matters which would be disclosed by an accurate survey or inspection of the Land.
4. Any lien, or right to a lien, for services, labor, or material or equipment, heretofore or hereafter furnished, imposed by law and not shown on the Public Records.
5. Taxes or special assessments which are not shown as existing liens by the Public Records.

Exceptions:

Rights or claims of parties in possession not shown by the Public Records

Easements, or claims of easements not shown by the Public Records

Encroachments, overlaps, boundary line disputes, or other matters which would be disclosed by an accurate survey or inspection of the premises

Any lien or right to a lien for services, labor or material heretofore or hereafter furnished, imposed by law and not shown by the above records.

Requirements:

Instruments necessary to create the estate or interest to be insured must be properly executed, delivered and duly filed for record

Pay the full consideration to or for the account of the grantors or mortgagors

Pay all taxes, charges, assessments, levied and assessed against subject premises, which are due and payable

Satisfactory evidence should be had that improvements and/or repairs or alterations thereto are completed; that contractor, sub-contractors, labor and material men are all paid; and have released of record all liens or notice of intent to perfect a lien for labor or material.

Standard Exceptions

1. Rights or claims of parties in possession not shown by the Public Records.
2. Easements, or claims of easements, not shown by the Public Records.
3. Encroachments, overlaps, boundary line disputes, or other matters which would be disclosed by an accurate survey or inspection of the Land.
4. Any lien, or right to a lien, for services, labor, or material heretofore or hereafter furnished, imposed by law and not shown by the Public Records.
5. Taxes or special assessments which are not shown as existing liens by the Public Records.

The following are the Standard Exceptions filed with the Department of Insurance:

a. Rights or claims of parties in possession not shown by the public records.
b. Easements, or claims of easements, not shown by the public records.
c. Any encroachment, encumbrance, violation, variation, or adverse circumstance that would be disclosed by an accurate and complete land survey of the Land.
d. Any lien, or right to a lien, for services, labor or material heretofore or hereafter furnished, imposed by law and not shown by the public records.
e. Taxes or special assessments which are not shown as existing liens by the public records.

There are no customary requirements.

Standard Exceptions are:

Rights or claims of parties in possession not shown by the public records.

Easements or claims of easements, not shown by the public records.

Encroachments, overlaps, boundary line disputes, or other matters which would be disclosed by an accurate survey and inspection of the premises.

Any lien or right to a lien, for services, labor, or material heretofore or hereafter furnished, imposed by law and not shown by the public records.

Subject to _______ taxes, which are not yet due and payable (if applicable).

"Minerals of whatsoever kind, subsurface and surface substances, including but not limited to coal, lignite, oil, gas, uranium, clay, rock, sand and gravel in, on, under and that may be produced from the Land, together with all rights, privileges, and immunities relating thereto, whether or not appearing in the Public Records or listed in Schedule B. The Company makes no representation as to the present ownership of any such interests. There may be leases, grants, exceptions or reservations of interests that are not listed."

1. Rights or claims of parties in possession not shown by the public record.
2. Easements, or claims of easements, not shown by the public record.
3. Encroachments, overlaps, boundary line disputes, or other matters which would be disclosed by an accurate survey and inspection of the subject property.
4. Any lien, or right to a lien, for services, labor, or material hereto or hereafter furnished, imposed by law and not shown on the public records.
5. Taxes or special assessments which are not shown as existing liens by the public record.

In Louisiana, Owner Policies customarily have the standard exceptions shown above and also include the following:

1. Community property, dower, curtesy, survivorship, or homestead rights, if any, of any spouse of the insured.
2. Any titles or rights assessed by anyone including but not limited to persons, corporations, governments or other entities, to tide lands, or lands comprising the shores or bottoms of navigable rivers, lakes, bays, ocean or gulf, or lands beyond the line of the harbor or bulkhead lines as established or changed by the United States Government or water rights, if any.
3. Reservations contained in Patent from the United States of America or State where the land described in Schedule A is located.
4. Taxes for the year XXXX, which are not yet due and payable.
5. Restrictive Covenants of record which affect the property described herein.

In Louisiana, Loan Policies have the standard exceptions shown above and also included the following:

1. Taxes for the year XXXX, which are not yet due and payable.
2. Restrictive Covenants of record which affect the property described herein.

Standard exceptions may be deleted. Stewart Underwriting Counsel should be consulted on a per transaction basis.

Standard exceptions:

1. Rights or claims of parties in possession not shown by the Public Records.
2. Easements, or claims of easements, not shown by the Public Records.
3. Encroachments, overlaps, boundary line disputes, or other matters which would be disclosed by an accurate survey and inspection of the premises.
4. Any lien, or right to a lien, for services, labor, or material heretofore or hereafter furnished, imposed by law and not shown by the Public Records.
5. Rights of the public and others in and to all streets, roads and ways that are adjacent to the Land.
6. Liens for all real estate taxes and assessments for the year {{Tax-Fiscal-Year}}and all subsequent years, which are not yet due and payable.

Standard Exceptions:

Rights or claims of parties in possession not recorded in the Public Records.

Easements or claims of easements not recorded in the Public Records.

Encroachments, overlaps, boundary line disputes, or other matters which would be disclosed by an accurate survey and inspection of the Land.

Any lien, or right to a lien, for services, labor, or material heretofore or hereafter furnished, imposed by law and not recorded in the Public Records.

Taxes or assessments which are not recorded as existing liens in the Public Records.

EXCEPTIONS FROM COVERAGE

Except as provided in Schedule B – Part II, if any such Schedule is attached, this policy does not insure against loss or damage (and the Company will not pay costs, attorneys’ fees or expenses) that arise by reason of the following General Exceptions:

1. Rights of present tenants, lessees or parties in possession.

2. Any lien, or right to a lien, for services, labor or materials heretofore or hereafter furnished, imposed by law and not shown by the public records.

3. Discrepancies, conflicts in boundary lines, shortage in area, easements, encroachments, and adverse circumstances which an accurate land survey and inspection of the premises would disclose.

4. Liens for real estate taxes and assessments, which become due and payable subsequent to the date of this policy, plus unpaid water and sewer charges, if any.

5. IF THE INSURED PREMISES IS A CONDOMINIUM UNIT:

A. Covenants, conditions, restrictions, reservations, easements, liens for assessments, options, powers of attorney and limitations on title, created by the laws of the State of the insured premises or set forth in the Master Deed or Declaration of Condominium, in the related By-laws, or in the Declaration of Trust, as duly recorded in the appropriate Land Records Office and as the same may have been lawfully amended, and in any instrument creating the estate or interest insured by this policy.

B. Loss or damage arising as a result of liens for common charges and attorney's fees pursuant to Chapter 400 of the Acts of 1992. (Massachusetts)

Michigan utilizes the Stewart standard exceptions:

Rights or claims of parties in possession not recorded in the Public Records.

Easements or claims of easements not recorded in the Public Records.

Encroachments, overlaps, boundary line disputes, or other matters which would be disclosed by an accurate survey or inspection of the Land.

Any lien, or right to a lien, for services, labor, material or equipment, heretofore or hereafter furnished, imposed by law and not recorded in the Public Records.

Taxes or assessments which are not recorded as existing liens in the Public Records.

Minnesota uses the standard exceptions.

1. Rights or claims of parties in possession not shown by the Public Records.
2. Easements, or claims of easements, not shown by the Public Records.
3. Encroachments, overlaps, boundary line disputes, or other matters which would be disclosed by an accurate survey or inspection of the Land.
4. Any lien, or right to a lien, for services, labor, or material heretofore or hereafter furnished, imposed by law and not shown on the Public Records.
5. Taxes or special assessments which are not shown as existing liens by the Public Records.

In residential transactions these are generally deleted based upon clean seller's affidavits and in some areas a physical property inspection. Virtual Underwriter bulletin guidelines are followed.

Standard exceptions:

1.  Defects, liens, encumbrances, adverse claims or other matters, if any, created, first appearing in the Public Records or attaching subsequent to the effective date hereof but prior to the date the Proposed Insured acquires for value of record the estate or interest or mortgage thereon covered by this Commitment.

2.  Rights or claims of parties in possession not recorded in the Public Records.

3.  Easements or claims of easements, not recorded in the Public Records.

4.  Encroachments, overlaps, boundary line disputes, or other matters which would be disclosed by an accurate survey and inspection of the premises.

5.  Any lien, or right to a lien, for services, labor or material heretofore or hereafter furnished, imposed by law and not recorded in the Public Records.

6.  Homestead or other marital rights of the spouse, if any, of any individual insured.

7.  Taxes or special assessments which are not shown as existing liens by the Public Records.

8.  Ad valorem taxes for the year (year of closing) and subsequent years, which are liens, but are not yet due and payable.

9.  Minerals of whatsoever kind, subsurface and surface substances, including but not limited to coal, lignite, oil, gas, uranium, clay, rock, sand and gravel in, on, under and that may be produced from the Land, together with all rights, privileges, and immunities relating thereto, whether or not appearing in the Public Records or listed in Schedule B. The Company makes no representation as to the present ownership of any such interests. There may be leases, grants, exceptions or reservations of interests that are not listed. 

Standard Requirements:

1. Show that restrictions or restrictive covenants have not been violated.

2. Payment to or for the account of the grantors or mortgagor of the full consideration for the estate or interest mortgage or lien to be insured.

3. Furnish proof of payment of all bills for labor and material furnished or to be furnished in connection with improvements erected or to be erected.

4. Pay all general and special taxes now due and payable.

5. Record instrument conveying or encumbering the estate or interest to be insured. 

EXCEPTIONS FROM COVERAGE

This policy does not insure against loss or damage (and the Company will not pay costs, attorneys’ fees, or expenses) that arise by reason of:

Standard Exceptions:

1. a. Rights or claims of parties in possession not shown by the public records.

b. Easements, or claims of easements, not shown by the public records.

c. Any encroachment, encumbrance, violation, variation, or adverse circumstance that would be disclosed by an accurate and complete land survey of the Land.

d. Any lien, or right to a lien, for services, labor or material heretofore or hereafter furnished, imposed by law and not shown by the public records.

e. Taxes or special assessments which are not shown as existing liens by the public records.

Special Exceptions:

2. Taxes ________ (current year) or year of issuance and subsequent years.

Some issuing offices or agents add requirements. Some do not. If requirements are added, they are specific to the commitment and transaction (e.g., require a copy of the operating agreement of the LLC; require payment and release of a Deed of Trust; require execution and recording of the deed of trust to be insured).

Included are some standard exceptions/requirements. They are basically the same except for minor variations in the tax exceptions.

-Defects, liens, encumbrances, adverse claims or other matters, if any, created, first appearing in the public records or attaching subsequent to the effective date hereof but prior to the date the proposed insured acquires for value of record the estate or interest or mortgage thereon covered by this Commitment.

-Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. Proceedings by a public agency, which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by public record.

-Any facts, rights, interest or claims which are not shown by the public records but which could be ascertained by an inspection of the land or by making inquiry of persons in possession thereof.

-Easements, liens or encumbrances, or claims thereof, which are not shown by the public records.

-Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records.

-(a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authoring the issuance thereof; (c) water rights, claims or title to water; ditch rights; (d) any right, title or interest in any sand and gravel and/or minerals including access to and from to extract minerals, mineral rights, or related matters, including, but not limited to oil, gas, coal and other hydrocarbons; whether or not the matters excepted under (a), (b), (c) or (d) are shown by the public records.

-Any lien or right to a lien, for services, labor or material heretofore or hereafter furnished, imposed by law and not shown by the public records.

-Any service, installation or connection charge for any and all utilities, including, but not limited to sewer, gas, water or electricity.

-County road rights-of-way, not recorded and indexed as a conveyance of record in the office of the Clerk and Recorder pursuant to Title 70, Chapter 21, M.C.A, including, but not limited to any right of the Public and the County of Lake to use and occupy those certain roads and trails.

-No liability is assumed for errors, omissions or changes of assessed valuations or amount of taxes assessed by any state, county, city or federal taxing or assessing authority.

Standard Exceptions

1. Defects, liens, encumbrances, adverse claims or other matters, if any, created, first appearing in the public records or attaching subsequent to the effective date hereof but prior to the date the proposed insured acquires for value of record the estate or interest or mortgage thereon covered by this Commitment.

2. Taxes or special assessments which are not shown as existing liens by the public records.

3. Any discrepancies, conflicts, or shortages in area or boundary lines, or any encroachments or any overlapping of improvements or other boundary or location disputes (can be eliminated or amended in mortgagee's policy upon proper evidence being furnished.)

4. Restrictive covenants affecting the property described in Schedule A.

5. Rights or claims of parties in possession, and not of record in the public records; liens for labor, services or materials or claims to same which are not of record in said records.

6. Any roadway or easement, similar or dissimilar, on, under, over or across said property, or any part thereof and not of record in said records.

7. Any titles or rights asserted by anyone, including but not limited to persons, corporations, governments, or other entities, to tidelands, or lands comprising the shores or bottoms of navigable rivers, lakes, bays, ocean or gulf or lands beyond the line of the harbor or bulkhead lines as established or changed by the United States Government or riparian rights, if any.

The standard ALTA 2006 policy forms are issued in Nevada.

In addition to the standard exceptions shown below, an exception for water rights is also included in the standard exceptions from coverage, as well as an exception for lands comprising the shores or bottoms of navigable rivers and lakes.

Rights or claims of parties in possession not recorded in the Public Records.

Easements or claims of easements not recorded in the Public Records.

Encroachments, overlaps, boundary line disputes, or other matters which would be disclosed by an accurate survey or inspection of the Land.

Any lien, or right to a lien, for services, labor, material or equipment, heretofore or hereafter furnished, imposed by law and not recorded in the Public Records.

Taxes or assessments which are not recorded as existing liens in the Public Records.

Standard exceptions:

1. Rights or claims of parties in possession not shown by the Public Records.
2. Easements, or claims of easements, not shown by the Public Records.
3. Encroachments, overlaps, boundary line disputes, or other matters which would be disclosed by an accurate survey and inspection of the premises.
4. Any lien, or right to a lien, for services, labor, or material heretofore or hereafter furnished, imposed by law and not shown by the Public Records.
5. Liens for all real estate taxes and assessments for the year {{Tax-Fiscal-Year}}and all subsequent years, which are not yet due and payable.

Standard NJ BI Requirements:

The following requirements must be met:

a) Payment of the full consideration to, or for the account of, the grantors or mortgagors.
b) Pay us the premiums, fees and charges for the policies.
c) Document(s) satisfactory to us creating the interest in the land and/or mortgage insured must be signed, delivered and recorded:

1. Deed made by the vested owner(s) set forth in Schedule A Item 2 to the proposed loan insured.
2. Mortgage made by the vested owner(s) set forth in Schedule A Item 2 to the proposed loan insured.
3. Notice of Settlement as to the above transactions must be filed ten (10) days prior to closing of title.

d) You must tell us in writing the name of anyone not referred to in this Commitment who will get an interest in the land or who will make a loan on the land. We may then raise additional requirements or exceptions.
e) Disposition of judgments, bankruptcies, and other matters shown a search of the New Jersey Superior Court and U.S. District Court:

New Jersey Superior court and United States District Court Search dated *discloses returns vs. *

Said judgment appears to be against the present or former owner(s) and must be satisfied of record at or prior to closing.

f) Satisfaction and discharge of record of the following MORTGAGES:

1.
2.
3.

The above mortgage is a credit line mortgage. The credit line secured by said mortgage must be closed PRIOR to closing of title and proof obtained that no further draws may be made on the account after the date of the pay off letter verifying the balance to be satisfied at closing.

g) A Standard form Mortgagor's Affidavit of Title is to be executed at the time of closing and is to be provided to this Company.
h) Subject to receipt and review of a tideland and grant search. Company reserves the right to add exceptions as may be warranted upon examination of same.

I) Subject to a continuation search prior to closing of title.

Standard NJ Schedule BII Exceptions:

1. Defects, liens encumbrances, adverse claims or other matters, if any, created, first appearing in the public records or attaching subsequent to the effective date hereof but prior to the date the proposed insured acquires for value of record the estate or interest or mortgage thereon covered by this Commitment.
2. Rights or claims of parties in possession of the land not shown by the public record.
3. Easements, or claims of easements, not shown by the public record.
4. Encroachments, overlaps, boundary line disputes, or other matters which would be disclosed by an accurate survey and inspection of the premises.
5. Any lien or right to a lien on your title, arising now or later, for labor and material not shown by the public record.
6. Minerals of whatsoever kind, subsurface and surface substances, including but not limited to coal, lignite, oil, gas, uranium, clay, rock, sand and gravel in, on, under and that may be produced from the Land, together with all rights, privileges, and immunities relating thereto, whether or not appearing in the Public Records or listed in Schedule B. The Company makes no representation as to the present ownership of any such interests. There may be leases, grants, exceptions or reservations of interests that are not listed
7. Subject to taxes, charges and assessments, if any:
a) Lien for 2012 taxes. Taxes unpaid for ____ quarters (penalty and interest). Subsequent taxes not yet due and payable.

See attached tax searches.

b) Municipal assessment search shows no pending unconfirmed assessments

See attached search.

c) Liability, if any, for additional assessment for taxes in connection with new construction pursuant to N.J.S.A. 54:4-63.1 et seq. Affidavit of title must disclose any new construction or improvements to the premises, if any, within the last twelve months.

Standard exceptions are promulgated by the Superintendent of Insurance and cannot be deleted, modified, changed or amended other than in accordance with the provisions of the New Mexico Title Insurance Regulations.

Rights or claims of parties in possession not shown by the public records.

Easements, or claims of easements, not shown by the public records.

Encroachments, overlaps, conflicts in boundary lines, shortages in area, or other matter which would be disclosed by an accurate survey and inspection of the premises.

Any lien, claim or right to a lien, for services, labor or material heretofore or hereafter furnished, imposed by law and not shown by public records.

Community property, survivorship or homestead rights, if any, of any spouse of the insured (or vestee in a leasehold or loan policy).

Water rights, claims or title to water.

Taxes for the year ____, and thereafter. (See Rule 13.14.5.12 NMAC.)

Defects, liens, encumbrances, adverse claims or other matters, if any, created first appearing in the public records or attaching subsequent to the effective date hereof but prior to the date the proposed insured acquires for value of record the estate or interest or mortgage thereon covered by this commitment.

The NM standard exceptions are promulgated by Rule 13.14.5.9A NMAC and cannot be changed, varied or amended.

The following are typical exceptions, subject to variation by county and local custom:

Rights or claims of parties in possession not recorded in the Public Records.

Easements or claims of easements not recorded in the Public Records.

Any state of facts an accurate survey would show.

Any lien, or right to a lien, for services, labor, material or equipment, heretofore or hereafter furnished, imposed by law and not recorded in the Public Records.

Taxes or assessments which are not recorded as existing liens in the Public Records.

Contact local Underwriter for local variations.

REQUIREMENTS

Every Commitment

1.    The Proposed Insured must notify the Company in writing of the name of any party not referred to in this Commitment who will obtain an interest in the Land or who will make a loan on the Land. The Company may then make additional Requirements or Exceptions.

2.    Pay the agreed amount for the estate or interest to be insured.

3.    Pay the premiums, fees, and charges for the Policy to the Company.

4.    Documents satisfactory to the Company that convey the Title or create the Mortgage to be insured, or both, must be properly authorized, executed, delivered, and recorded in the Public Records.

(Documents to be listed here)

5.    The Company requires the payment of all taxes and assessments and any penalties and interest, due and payable at closing.

6.    If the closing is a consumer or residential matter, the closing must be supervised by a licensed North Carolina attorney. A Certification of North Carolina Attorney must be obtained.

7.    Receipt of premium and final title opinion from a non-employee, non-agent Stewart approved North Carolina licensed attorney (along with copies of the executed and recorded warranty deed and first three pages and signature pages of the deed of trust, if applicable) to issue a final policy.

8.    Receipt of applicable NCLTA forms below (or substantially similar form approved by Company prior to closing), completed, executed and notarized, as follows:

NO RECENT (last 120 days) OR CONTEMPLATED CONSTRUCTION:

NCLTA FORM 1 (Owner Affidavit) from every seller (on sale) or borrower (on refinance) who has not contracted for recent or contemplated improvements on the Land or for a construction loan.

Note: If a contract purchaser has contracted for or is contemplating improvements, see “CONSTRUCTION CONTEMPLATED OR IN PROCESS” below.

RECENTLY COMPLETED IMPROVEMENTS:

Non-MLA project:  NCLTA FORM 2 (Owner/Contractor Affidavit, Lien Waiver, and Indemnity) from every Owner and every Contractor.

MLA project: 

(1)  Receipt of proof satisfactory to the Company that prior to closing or prior to first contracting for construction (whichever occurs first),

a.  A Lien Agent was designated on the LiensNC.com website, AND

b.  The Appointment of Lien Agent was posted at the Land.

(2)  NCLTA FORM 5 (Owner Affidavit) from every Owner; AND

(3)  NCLTA FORM 6 (MLA Lien Waiver) from every PLC-MLA.

CONSTRUCTION CONTEMPLATED OR IN PROCESS:

Non-MLA project:  NCLTA FORM 3 (Owner/Contractor Affidavit, Indemnity and Lien Subordination) (for lender coverage only) from every Owner and every Contractor

MLA project:

(1)  Receipt of proof satisfactory to the Company that prior to closing or prior to first contracting for construction (whichever occurs first):

a.  A Lien Agent was designated on the LiensNC.com website, AND

b.  The Appointment of Lien Agent was posted at the Land;

(2)  NCLTA FORM 5 (Owner Affidavit) from every Owner; AND;

(3)  NCLTA FORM 6 (MLA Lien Waiver) or NCLTA FORM 7 (MLA Subordination of Liens) from every PLC-MLA.

Note: If a contract purchaser has contracted for or is contemplating improvements prior to closing, see “NO RECENT IMPROVEMENTS” above regarding seller lien affidavits as well.

MLA NOT Appointed Prior to Contracting for Labor Services or Materials

In all cases in which an MLA was required but not (timely) appointed, prior approval and terms of coverage (if any) by Company underwriting counsel is required.

Applicable Definitions

“Non-MLA Projects”: Improvements are (1) first contracted before April 1, 2013, (2) for a value less than $40,000.00 OR (3) solely for improvements to owner’s existing residence.  All other projects (other than public projects) are MLA projects.

“Owner” is holder of any interest in the Land, including leasehold owner or contract purchaser.

“Potential Lien Claimant” (or “PLC-MLA”) is any person (or entity) entitled to file a claim of lien on real property (herein “Liens”), for providing labor, services, (including design professionals such as surveyors, architects, engineers and landscape engineers), materials or rental equipment provided for improvements to the Land (herein “Improvements”), pursuant to Article 2 of Chapter 44A of the North Carolina General Statutes AND who either has filed a Notice to Lien Agent, OR was identified in the original Appointment, OR is a Design Professional OR is a PLC whose first furnishings was within 15 days prior to closing OR (for waivers) delivered a claim of lien upon funds on the Owner.

“Contractor” Any person or entity who has performed or furnished or has contracted to perform or furnish Labor, Services or Materials pursuant to a contract, either express or implied, with the Owner of real property for the making of an Improvement thereon OR who has delivered a claim of lien upon funds to the Owner.

9.    Buyer/borrower’s spouse, if any, to execute Deed of Trust.

10.  Seller’s spouse, if any, to execute deed.

Note: You must provide the STG Privacy Notice(s) to individuals (including buyers, sellers, and borrowers) who are buying or selling their home or obtaining a loan on their home, at the earliest to occur of the following: (A) with the title insurance commitment, if you deliver a commitment to them for an owner's or loan policy; (B) at the time of closing, if you perform closing or escrow services, and you have not previously provided the STG Privacy Notice to them; (C) with the title policy, if you issue a title policy to them, and you have not previously provided the STG Privacy Notice to them.

Additionally, for commercial transactions only:

The Commercial Real Estate Broker Lien Act applies to a sale or lease of commercial real estate; therefore, disclosure by the seller and buyer (lessor and lessee) or by the borrower when there is no sale required, in affidavit form stating (1) whether or not broker’s services have been engaged with regard to the management, sale, purchase, lease, or other conveyance of any interest in the Property and (2) whether or not a notice of lien for any such services have been received.  Where the possibility of a right to file a broker’s lien exists, satisfaction (waiver, estoppel statement and payment) of such a lien right must occur prior to or at closing.  If not so satisfied, an exception to any such right to a broker’s lien will appear in Schedule B of the Policy.

STANDARD EXCEPTIONS:

1.       Rights or claims of parties in possession not shown by the public records.

2.       Easements, or claims of easements, not shown by the public records.

3.       Any lien, or right to a lien, for services, labor or materials heretofore or hereafter furnished, imposed by law and not shown by public records.

4.       Rights of dower, homestead or other marital rights of the spouse, if any, of any individual insured.

5.       Taxes or special assessments which are not shown as existing liens by the public records.

6.       Such state of facts as would be disclosed by a current, accurate survey and inspection of the insured premises.

Standard exceptions are:

1. Defects, liens, encumbrances, adverse claims or other matters, if any; created, first appearing in the Public Records, or attaching subsequent to the effective date hereof but prior to the date the proposed insured acquires for value of record the estate or interest or mortgage thereon covered by this Commitment.
2. Rights or claims of parties in possession not shown by the Public Records.
3. Easements, or claims of easements, which are not shown by the Public Records.
4. Any encroachment, encumbrance, violation, variation or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and not shown in the Public Records.
5. Any lien or right to a lien for series, labor or material heretofore or hereafter furnished, imposed by law and not shown in the Public Records.
6. a. Unpatented mining claims; b. reservations or exceptions in patents or in Acts authorizing the issuance thereof; c. water rights, claims or title to water, whether or not the matters excepted under (a), (b) or (c) are shown by the Public Records.
7. Taxes and special assessments which are not shown as existing liens by the Public Records.

OHIO STANDARD EXCEPTIONS

1) Rights or claims of parties other than Insured in actual possession of any or all the property.

2) Any lien, mechanic's lien, or materialman’s lien or right to a lien, for services, labor, or material heretofore or hereafter furnished, imposed by law, and not shown by the Public Records.

3) Public or private easements, or claims of easements, not shown by the public record.

4) Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land. The term “encroachment" includes encroachments of existing improvements located on the Land onto adjoining land, and encroachments onto the Land of existing improvements located on adjoining land.

5) Anything to the contrary notwithstanding, this policy does not insure the quantity of acreage, square footage, or accuracy of dimensions recited within the description of premises described in Schedule A.

6) Minerals of whatsoever kind, subsurface and surface substances, including but not limited to coal, lignite, oil, gas, uranium, clay, rock, sand, and gravel in, on, under and that may be produced from the Land, together with all rights, privileges, and immunities relating thereto, whether appearing in the Public Records or listed in Schedule B. The Company makes no representation as to the present ownership of any such interests. There may be leases, grants, exceptions or reservations of interests that are not listed.

7) Taxes or assessments which are not recorded as existing liens in the Public Records.

8) (Note: This is exception is for loan policies only) Subject to any oil and/or gas lease, pipeline agreement, or other instrument related to the production or sale of oil or natural gas which may arise after the Date of the Policy.

STANDARD EXCEPTIONS

Defects, liens, encumbrances, adverse claims or other matters, if any, created, first appearing in the public records or attaching subsequent to the Effective Date hereof but prior to the date the proposed Insured acquires for value of record the estate or interest or mortgage thereon covered by this Commitment.

Rights or claims of parties in possession not recorded in the Public Records.

Easements or claims of easements not recorded in the Public Records.

Encroachments, overlaps, boundary line disputes, or other matters which would be disclosed by an accurate survey or inspection of the Land.

Any lien, or right to a lien, for services, labor, material or equipment, heretofore or hereafter furnished, imposed by law and not recorded in the Public Records.

Taxes or assessments which are not recorded as existing liens in the Public Records.

Minerals of whatsoever kind, subsurface and surface substances, including but not limited to coal, lignite, oil, gas, uranium, clay, rock, sand and gravel in, on, under and that may be produced from the Land, together with all rights, privileges, and immunities relating thereto, whether or not appearing in the Public Records or listed in Schedule B. The Company makes no representation as to the present ownership of any such interests. There may be leases, grants, exceptions or reservations of interests that are not listed.

STANDARD REQUIREMENTS

Show that restrictions or restrictive covenants have not been violated.

Payment to or for the account of the grantors or mortgagors of the full consideration for the estate or interest, mortgage or lien to be issued.

Furnish proof of payment of all bills for labor and material furnished or to be furnished in connection with improvements erected or to be erected.

Determine by gap check that no adverse documents, transactions, or other matters, affecting title, or as against insured owner(s) have been filed subsequent to the effective date of this commitment to the actual date of closing.

Obtain an affidavit of the Seller (Borrower) that said Seller or Borrower is not a foreign person as that term is defined in Section 1445 of the Internal Revenue Code of 1954 as amended (the Code), and the applicable regulations. If a foreign person, then compliance is required with the Code, its rules and regulations pertaining thereto.

Obtain an affidavit and indemnity from the Seller (Borrower) as to debts, liens and possession.

Have a certified survey performed by a registered land surveyor or civil engineer certifying that said survey was made on the ground of the subject property, that the same is correct and that there are no discrepancies, conflicts, shortages in area, boundary line conflicts, encroachments, overlapping of improvements, easements, or rights of way as shown herein, and that said property has access to and from a dedicated highway.

Signing Requirements:

Joinder of Spouses is required for conveyance or encumbrance of homestead property. Marital status must be recited both in the body of the instrument and in the acknowledgement.

Corporate execution requires the signature of the President, Vice President, Chairman or Vice-Chairman of the Board of Directors.

A corporate instrument executed in another state may be accepted if it is executed either by the proper officers under Oklahoma law or by the proper officers under the laws of the state where the instrument was executed. 16 O.S. § 53, 93; Oklahoma Title Standard No. 12.2.

Attestation and corporate seal are no longer required in Oklahoma.

Oregon utilizes the following standard exceptions:

1. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the Public Records; proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the Public Records.

2. Facts, rights, interests or claims which are not shown by the Public Records but which could be ascertained by an inspection of the Land or by making inquiry of persons in possession thereof.

3. Easements, or claims of easement, not shown by the Public Records; reservations or exceptions in patents or in Acts authorizing the issuance thereof; water rights, claims or title to water.

4. Any encroachment (of existing improvements located on the subject Land onto adjoining Land or of existing improvements located on adjoining Land onto the subject Land) encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the subject Land.

5. Any lien, or right to a lien, for services, labor, material, equipment rental, or workers compensation heretofore or hereafter furnished, imposed by law and not shown by the Public Records.

1. Defects, liens, encumbrances, adverse claims or other matters, if any, created, first appearing in the public record or attaching subsequent to the effective date hereof but prior to the date the proposed insured acquires for value of record the estate or interest or mortgage thereon covered by the commitment.

2. Discrepancies or conflicts in boundary lines, easements, encroachments, or area content which a satisfactory survey would disclose.

3. Any lien, or right to a lien for services, labor or materials heretofore or hereafter furnished, imposed by law and not shown by public records.

4. Rights or claims of parties in possession or under agreements of sale not shown by public records.

5. Taxes or special assessments which are not shown on the public record.

6. Possible additional tax assessments for new construction and or major improvements.

7. Any reservation, restriction, limitations, conditions or agreements set forth in the instrument by which title is vested in the insured.

8. Subject to all coal and mining rights and all rights relating thereto: THIS DOCUMENT DOES NOT INCLUDE OR INSURE THE TITLE TO THE COAL AND THE RIGHT OF SUPPORT UNDERNEATH THE SURFACE OF THE LAND DESCRIBED OR REFERRED TO HEREIN AND THE OWNER OR OWNERS OF SUCH COAL MAY HAVE THE COMPLETE AND LEGAL RIGHT TO REMOVE ALL SUCH COAL AND, IN THAT CONNECTION, DAMAGE MAY RESULT TO THE SURFACE OF THE LAND AND ANY HOUSE, BUILDING OR OTHER STRUCTURE ON OR IN SUCH LAND. THE INCLUSION OF THIS NOTICE DOES NOT ENLARGE, RESTRICT OR MODIFY ANY LEGAL RIGHTS OR ESTATES OTHERWISE CREATED, TRANSFERRED, EXCEPTED OR RESERVED BY THIS INSTRUMENT. Policy does not insure against subsidence.

9. Excepting and reserving that portion of the premises lying in and along the roadbed(s); subject to public and private rights thereon.

10. Company assumes no liability for the possible designation of the premises insured hereunder as a Wetlands Area by any governmental agency.

11. Subject to any line rights of way including electric line, telephone line, cable line, water and sewer line rights of way in use and existing in, on, or under the ground and all rights in relation thereto.

12. Amount and computation of area or acreage is not insured.

13. Any lease, grant, exception or reservation of oil or gas rights, storage rights, or minerals or mineral rights appearing in the Public Records.

Standard Exceptions

The Stewart Title Guaranty Company national standard exceptions are:

Rights or claims of parties in possession not recorded in the Public Records.

Easements or claims of easements not recorded in the Public Records.

Any discrepancies, conflicts or shortages in area or boundary lines, or any encroachments or protrusions, or any overlapping of the improvements.

Any lien, or right to a lien, for services, labor, material or equipment, heretofore or hereafter furnished, imposed by law and not recorded in the Public Records.

Taxes or assessments which are not recorded as existing liens in the Public Records.

If you have any questions about the use of these standard exceptions, please consult with state underwriting counsel. Similarly, if you have any questions about the form of specific exceptions, please consult with state underwriting counsel.

The standard exceptions are:

Rights or claims of parties in possession not recorded in the Public Records.

Easements or claims of easements not recorded in the Public Records.

Encroachments, overlaps, boundary line disputes, or other matters, which would be disclosed by an accurate survey or inspection of the Land.

Any discrepancies, conflicts or shortages in area or boundary lines, or any encroachments or protrusions, or any overlapping of the improvements.

Any lien, or right to a lien, for services, labor, material or equipment, heretofore or hereafter furnished, imposed by law and not recorded in the Public Records.

Taxes or assessments which are not recorded as existing liens in the Public Records.

Standard Exceptions:

1. Defects, liens, encumbrances, adverse claims or other matters, if any; created, first appearing in the Public Records, or attaching subsequent to the effective date hereof but prior to the date the proposed insured acquires for value of record the estate or interest or mortgage thereon covered by this Commitment.

2. Rights or claims of parties in possession not recorded in the Public Records.

3. Easements, or claims of easements, which are not recorded in the Public Records.

4. Any encroachment, encumbrance, violation, variation or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and not shown in the Public Records.

5. Any lien or right to a lien for services, labor or material heretofore or hereafter furnished, imposed by law and not recorded in the Public Records.

6. a. Unpatented mining claims; b. reservations or exceptions in patents or in Acts authorizing the issuance thereof; c. water rights, claims or title to water, whether or not the matters excepted under (a), (b) or (c) are shown by the Public Records.

7. Taxes or special taxes and special assessments which are not recorded as existing liens by the Public Records.

8. Minerals of whatsoever kind, subsurface and surface substances, including but not limited to coal, lignite, oil, gas, uranium, clay, rock, sand and gravel in, on, under and that may be produced from the Land, together with all rights, privileges, and immunities relating thereto, whether or not appearing in the Public Records or listed in Schedule B. The Company makes no representation as to the present ownership of any such interests. There may be leases, grants, exceptions or reservations of interests that are not listed.

The basic requirements are: deed, deed of trust, release(s), payment of taxes, release of liens, as well as the following:

Rights or claims of parties in possession not recorded in the Public Records.

Easements or claims of easements not recorded in the Public Records.

Any discrepancies, conflicts or shortages in area or boundary lines, or any encroachments or protrusions, or any overlapping of the improvements.

Any lien, or right to a lien, for services, labor, material or equipment, heretofore or hereafter furnished, imposed by law and not recorded in the Public Records.

Taxes or assessments which are not recorded as existing liens in the Public Records.

Standard Exceptions

In addition to the Exclusions and Conditions and Stipulations, your Policy will not cover loss, costs, attorney's fees, and expenses resulting from:

1. The following restrictive covenants of record itemized below (We must either insert specific recording data or delete this exception):

2. Any discrepancies, conflicts, or shortages in area or boundary lines, or any encroachments or protrusions, or any overlapping of improvements.

3. Homestead or community property or survivorship rights, if any, of any spouse of any insured. (Applies to the Owner’s Policy only.)

Exception is taken to any homestead, community property or survivorship rights in this item. This exception only applies to any owner policy to be issued.

4. Any titles or rights asserted by anyone, including, but not limited to, persons, the public, corporations, governments or other entities,

a. to tidelands, or lands comprising the shores or beds of navigable or perennial rivers and streams, lakes, bays, gulfs or oceans, or
b. to lands beyond the line of the harbor or bulkhead lines as established or changed by any government, or
c. to filled-in lands, or artificial islands, or
d. to statutory water rights, including riparian rights, or
e. to the area extending from the line of mean low tide to the line of vegetation, or the rights of access to that area or easement along and across that area.

(Applies to the Owner’s Policy Only)

5. Standby fees, taxes and assessments by any taxing authority for the year 20____, and subsequent years, and subsequent, taxes and assessments by any taxing authority for prior years due to change in land usage or ownership, but not those taxes or assessments for prior years because of an exemption granted to a previous owner of the property under Section 11.13, Texas Tax Code, or because of improvements not assessed for a previous tax year. (If Texas Short Form Residential Mortgagee Policy of Title Insurance (T-2R) is issued, that policy will substitute “which become due and payable subsequent to Date of Policy” in lieu of “for the year 20____ and subsequent years.”)

6. The terms and conditions of the documents creating your interest in the land.

7. Materials furnished or labor performed in connection with planned construction before signing and delivering the lien document described in Schedule A, if the land is part of the homestead of the owner. (Applies to the Mortgagee Title Policy Binder on Interim Construction Loan only, and may be deleted if satisfactory evidence to us before a binder is issued.)

8. Liens and leases that affect the title to the land, but that are subordinate to the lien of the insured mortgage. (Applies to Mortgagee Policy (T-2 only.)

9. The Exceptions from Coverage and Express Insurance in Schedule B of the Texas Short Form Residential Mortgagee Policy of Title Insurance (T-2R). (Applies to Texas Short Form Residential Mortgagee Policy of Title Insurance (T-2R) only. Separate exceptions 1 through 8 of this Schedule B do no apply to the Texas Short Form Residential Mortgagee Policy of Title Insurance (T-2R).

10. The following matters and all terms of the document creating or offering evidence of the matters (We must insert matters or delete this exception.):

11. Rights of Parties in Possession. (Applies only if the Insured completes Waiver of Inspection.)

12a. Owner’s Policy (amount to include the cost of immediately contemplated improvements)

“Any and all liens arising by reason of unpaid bills or claims for work performed or materials furnished in connection with improvements placed, or to be placed, upon the subject land. However, the Company does insure the Insured against loss, if any, sustained by the Insured under this Policy if such liens have been filed with the County Clerk of _______ County, Texas, prior to the date hereof.”

“Liability hereunder at the date hereof is limited to $_______. Liability shall increase as contemplated improvements are made, so that any loss payable hereunder shall be limited to said sum plus the amount actually expended by the Insured in improvements at the time the loss occurs. Any exceptions made for improvements, subsequent to the date of this policy, will be deemed made as of the date of this policy. In no event shall the liability of the Company hereunder exceed the face amount of this policy. Nothing contained in this paragraph shall be construed as limiting any exception or any printed provision of this policy.”

12b. Loan Policy (issued prior to completion of improvements)

“Any and all liens arising by reason of unpaid bills or claims for work performed or materials furnished in connection with improvements placed, or to be placed, upon the subject land. However, the Company does insure the Insured against loss, if any, sustained by the Insured under this Policy if such liens have been filed with the County Clerk of _______ County, Texas, prior to the date hereof.”

“Pending disbursement of the full proceeds of the loan secured by the lien instrument set forth under Schedule A hereof, this policy insures only to the extent of the amount actually disbursed, but increases as each disbursement is made in good faith and without knowledge of any defects in, or objections to, the title up to the face amount of the policy. Nothing contained in this paragraph shall be construed as limiting any exception under Schedule B, or any printed provision of this policy.”

Requirements
Your Policy will not cover loss, costs, attorney's fees, and expenses resulting from the following requirements that will appear as Exceptions in Schedule B of the Policy, unless you dispose of these matters to our satisfaction, before the date the Policy is issued:
1. Documents creating your title or interest must be approved by us and must be signed, notarized and filed for record.

2. Satisfactory evidence must be provided that:

• no person occupying the land claims any interest in that land against the persons named in paragraph 3 of Schedule A,
• all standby fees, taxes, assessments and charges against the property have been paid,
• all improvements or repairs to the property are completed and accepted by the owner, and that all contractors, subcontractors, laborers and suppliers have been fully paid, and that no mechanic's, laborer's or materialman's liens have attached to the property,
• there is legal right of access to and from the land,
• (on a Mortgagee Policy only) restrictions have not been and will not be violated that affect the validity and priority of the insured mortgage.

3. You must pay the seller or borrower the agreed amount for your property or interest.

4. Any defect, lien or other matter that may affect title to the land or interest insured, that arises or is filed after the effective date of this Commitment.

1) Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the Public Records. Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the Public Records.

2) Any facts, rights, interests, or claims which are not shown by the Public Records, but which could be ascertained by an inspection of the Land or by making inquiry of persons in possession thereof.

3) Easements, liens, or encumbrances, or claims thereof, which are not shown by the Public Records.

4) Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and not shown by the Public Records.

5) (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims, or title to water, whether or not the matters excepted under (a), (b) or (c) are shown by the Public Records.

6) Any lien or right to a lien for services, labor, material, or equipment heretofore or hereafter furnished, imposed by law and not shown by the Public Records.

7) Any defect, lien, encumbrance, adverse claim, or other matter that appears for the first time in the Public Records or is created, attaches, or is disclosed between the Commitment Date and the date on which all of the Schedule B, Part I - Requirements are met.

8) MINERAL EXCEPTION. In addition to the above 7 exceptions, the following mineral exception shall be included in all commitments and policies unless Underwriter approval to delete the same is obtained. "Minerals of whatsoever kind, subsurface and surface substances, including but not limited to coal, lignite, oil, gas, uranium, clay, rock, sand and gravel in, on, under and that may be produced from the Land, together with all rights, privileges, and immunities relating thereto, whether or not appearing in the Public Records or listed in Schedule B. Stewart makes no representation as to the present ownership of any such interests. There may be leases, grants, exceptions or reservations of interests that are not listed."

The standard exceptions are as followed:

1. Rights of present tenants, lessees or parties in possession.
2. Any lien, or right to a lien, for services, labor or materials heretofore or hereafter furnished, imposed by law and not shown by the public records.
3. Discrepancies, conflicts in boundary lines, shortage in area, easements, encroachments, and facts which an accurate survey and inspection of the premises would disclose.

Special Exceptions: The Mortgage, if any, referred to in Item 4 of Schedule A.

4. Liens for real estate taxes and assessments, which become due and payable subsequent to the date of this policy, plus unpaid water and sewer charges, if any.
5. IF THE INSURED PREMISES IS A CONDOMINIUM UNIT:
Covenants, conditions, restrictions, reservations, easements, liens for assessments, options, powers of attorney and limitations on title, created by the laws of the State of the insured premises or set forth in the Master Deed or Declaration of Condominium, in the related By-laws, or in the Declaration of Trust, as duly recorded in the appropriate Land Records Office and as the same may have been lawfully amended, and in any instrument creating the estate or interest insured by this policy.

Virginia uses the standard exceptions.

1. Rights or claims of parties in possession not shown by the Public Records.
2. Easements, or claims of easements, not shown by the Public Records.
3. Encroachments, overlaps, boundary line disputes, or other matters which would be disclosed by an accurate survey or inspection of the Land.
4. Any lien, or right to a lien, for services, labor, or material heretofore or hereafter furnished, imposed by law and not shown on the Public Records.
5. Taxes or special assessments which are not shown as existing liens by the Public Records.

• Rights or claims of parties in possession not shown by the Public Records.
• Easements, or claims of easements, not shown by the Public Records.
• Encroachments, overlaps, boundary line disputes, or other matters which would be disclosed by an accurate survey or inspection of the Land.
• Any lien, or right to a lien, for services, labor, or material heretofore or hereafter furnished, imposed by law and not shown by the Public Records.
• Taxes or special assessments which are not shown as existing liens by the Public Records.

West Virginia uses the standard exceptions.

1. Rights or claims of parties in possession not shown by the Public Records.
2. Easements, or claims of easements, not shown by the Public Records.
3. Encroachments, overlaps, boundary line disputes, or other matters which would be disclosed by an accurate survey or inspection of the Land.
4. Any lien, or right to a lien, for services, labor, or material heretofore or hereafter furnished, imposed by law and not shown on the Public Records.
5. Taxes or special assessments which are not shown as existing liens by the Public Records.

Standard exceptions:

1.  Defects, liens, encumbrances, adverse claims or other matters, if any, created, first appearing in the public records or attaching subsequent to the Commitment Date hereof but prior to the date the proposed Insured acquires for value of record the estate or interest or mortgage thereon covered by this Commitment.

2.  Any lien, or right to a lien, for services, labor, or material heretofore or hereafter furnished, imposed by law and not shown by the Public Records.

3.  Liens, hook-up charges or fees, deferred charges, reserve capacity assessments, impact fees, or other charges or fees due and payable on the development or improvement of the Land, whether assessed or charged  before or after the date of the policy. 

4.  Rights or claims of parties in possession not shown by the Public Records. 

5.  Encroachments, overlaps, boundary line disputes, or other matters affecting Title which would be disclosed by an accurate survey or inspection of the Land. 

6.  Easements or claims of easements not shown by the Public Records.

7.  Any claim of adverse possession or prescriptive easement.

8.  Special taxes or assessments, if any, payable with the taxes levied or to be levied for the year____and subsequent years.

9.  General taxes for the year_____and subsequent years. 

The standard mineral exception should not be included in any commitment for an Owner’s policy as our insurance commissioner has issued a memo not permitting a general exclusion for minerals.  It is permitted in a Loan Policy. 

Here is a link to our current bulletin on the matter if needed for reference. 

https://www.vuwriter.com/en/bulletins/2014-8/wi2014003.html

The following are the standard exceptions as filed in the rate manual:

1) Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the Public Records. Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the Public Records.

2) Any facts, rights, interests, or claims which are not shown by the Public Records, but which could be ascertained by an inspection of the Land or by making inquiry of persons in possession thereof.

3) Easements, liens, or encumbrances, or claims thereof, which are not shown by the Public Records.

4) Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and not shown by the Public Records.

5) (a) Unpatented mining claims; (b)
reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims, or title to water, whether or not the matters excepted under (a), (b) or (c) are shown by the Public Records.

6) Any lien or right to a lien for services, labor, or material heretofore or hereafter furnished, imposed by law and not shown by the Public Records.