Bulletin: TX2018006

Date:
November 06, 2018
To:
All Texas Issuing Offices
RE:
UNDERWRITING - Commitment Language Regarding Surveys

Dear Associates:

We have become aware that misleading language regarding underwriter approval of surveys is possibly being inserted into commitments.

We have seen language that says something similar to the following:

“This Company has reviewed and approved for all purposes the survey dated (date on the survey) by (surveyor name) RPLS No (….) for (Surveying Company) subject to (Acceptable T-47 affidavit), (fully executed and sealed survey)”.

This language or any other language that indicates the survey has been approved for any particular purpose is not approved for use and should not be inserted into Stewart commitments or policies. 

Please note that surveys are only approved under P-2 for the limited purpose of providing the area and boundary amendment to the policy, not for all purposes.

More appropriate language is provided below:

For a current survey prepared in connection with the current transaction: 

A survey dated ______ by _______surveyor’s name ______ RPLS No. ____ having been provided, the item 2 of Schedule B of the policy will be amended to read “Shortages in the area”. 

For an older survey prepared in connection with a prior transaction: 

A survey dated ______ by _______surveyor’s name ______ RPLS No. ____ having been provided, and a T-47 affidavit [   ] being provided/ [   ] having been provided (check one), item 2 of Schedule B of the policy will be amended to read “Shortages in area”.

Stewart underwriters may assist in reviewing legal descriptions for sufficiency, but do not approve the actual survey. Stewart underwriters may also work with you to properly except to matters shown on the survey, but again, neither title insurance companies, nor title insurance agents approve the survey in any way. 

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.

THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

References

Bulletins Replaced:
None
Related Bulletins:
None
Underwriting Manual:
18.40 Surveys
Exceptions Manual:
None
Forms:
None