- February 29, 2008
- All Policy Issuing Agents Located Outside New York State
- 2006 ALTA policies with TIRSA Endorsements
The only policies that can be issued in New York are the 2006 ALTA Owner's Policy, 2006 ALTA Loan Policy, and 2006 ALTA Short Form Residential Loan Policy, issued by Stewart Title Insurance Company, with the TIRSA Standard New York Endorsement.
The policy forms and endorsements can be found at our website, www.stewartnewyork.com, in the Agent Resource Area, along with policy comparisons between the 1992 and 2006 Policies and endorsements for the 2006 ALTA Policy and previous Stewart bulletins. You will need your Agent ID Number to access the Resource Center.
Following is a synopsis of some of the major changes:
2006 ALTA Policy Survey Requirements
The survey coverage provided under Covered Risk 2(c) in the 2006 ALTA Loan and Owners Policies (the "default survey coverage") must be read in conjunction with the Standard New York Endorsements (6-17-06) and Part 1, Section 1(K) of the TIRSA Rate Manual (Fourth Reprint: May 1, 2007). The TIRSA Survey Endorsement (9/1/93) is not available in connection with the 2006 ALTA Loan Policy. From a billing perspective, there is no provision in the Rate Manual for a separate charge for the default coverage provided under Covered Risk 2(c) and a separate charge cannot be collected for such coverage under any circumstances.
The default survey coverage in the Loan Policy is only for a 1-4 family dwelling under provision 1, Standard New York Endorsement (6-17-06). Any other property including vacant land does not get the default survey coverage.
There is no default survey coverage in the Owner’s Policy. It has been removed by Standard New York Endorsement (6-17-06) under provision 1.
Schedule B Exceptions
Loan Policy 1-4 family
Because coverage is afforded by default unless removed by the inclusion of an appropriate Schedule B exception, a survey affidavit in the same form as the prior survey endorsement affidavit should be taken. In the rare instances where an underwriting decision is made not to provide the default coverage under a Loan Policy covering property improved by a 1-4 Family dwelling, the following exception should be inserted in Schedule B: "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."
Loan Policy all others
This category is treated as it always has been, there is either a survey and reading (if applicable) or the policy must include the following language as an exception: "Subject to any state of facts an accurate survey would show." This language is mandated by the TIRSA Rate Manual under Part I, Section 1( (L)(2).
There is no change from previous guidelines. There is either a survey and reading (if applicable) or the policy must include the following language as an exception: "Subject to any state of facts an accurate survey would show." This language is mandated by the TIRSA Rate Manual under Part I, Section 1(L)(1).
Moreover, in all cases where you do not intend to give survey coverage, in addition to the exception dictated by the Rate Manual or the default language exception referenced above, the policy must include the following language as a Schedule B exception: "Exact location and dimensions of the land are not insured in the absence of an accurate survey."
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.