Bulletin: NJ2019005

Date:
August 16, 2019
To:
All New Jersey Issuing Offices
RE:
RATES AND/OR FORMS UPDATE - Revised Rate Manual

Dear Associates:

Changes have been made to the New Jersey Rate Manual effective September 1, 2019. Please take the opportunity to familiarize yourself with the updated Rate Manual, which the Department of Banking and Insurance has approved for use in New Jersey as of September 1, 2019. The specific changes are as follows:

  1. NJRB 3-09 ALTA Commitment for Title Insurance. Schedule A of the Commitment now includes a “Transaction Identification Data” section at the top of the document. This section includes transaction specific information such as the Issuing Agent, Commitment Number, Office File Number, and Property Address. All fields that are bracketed are optional.
  2. NJRB 5-94 ALTA Endorsement 8.1-06 (Environmental Protection Lien). This endorsement now contains a statement that makes it clear that the endorsement is void if attached to an owners’ policy. 
  3. NJRB 5-137 ALTA Endorsement 3.2-06 (Zoning - Land Under Development).Two changes were made to this endorsement: (1) Technical changes were made to the heading to comply with ALTA’s amendments and (2) The word “existing” was removed from Paragraph 3.
  4. NJRB 5-165 ALTA Endorsement 8.2 (Commercial Environmental Protection Lien). This endorsement now contains a statement that makes it clear that the endorsement is void if attached to an owners’ policy.

In addition, the following new endorsements have been approved for use in New Jersey as of September 1, 2019:

  1. NJRB 5-179 ALTA Endorsement 3.3-06 (Zoning - Completed Improvement - Non-Conforming Use (New Jersey Variation)). This endorsement insures against loss or damage suffered by the Insured resulting from a Non-Conforming Use not being allowed by the municipality or county because (1) the Non-Conforming Use violates a Zoning Ordinance and (2) a final decree of a court of competent jurisdiction either prohibits the Non-Conforming Use or requires the removal or alteration of the Improvement. The charge for this Endorsement is 20% of the Standard Underwriting Charge with a minimum charge of $150.00 (Section 10.107 of the Rate Manual).
  2. NJRB 5-180 ALTA Endorsement 18.3-06 (Singe Tax Parcel and ID). This endorsement insures against loss or damage suffered by the Insured as a result of the Land being taxed as part of a larger parcel of land or failing to constitute a separate tax parcel for real estate taxes; or any portion of the Land not being assessed for real estate taxes under the designated tax identification number. The charge for this endorsement will be $50.00 (Section 10.55 of the Rate Manual).

Finally, the following changes were made to the Rate Manual:

  1. Section 1.4 “Examination Charge”. A grammatical change was made to comply with the current wording of Sections 5.1 and 5.3.
  2. Section 10.55 ALTA 18-06 Single Tax Parcel Endorsement and ALTA 18.3-06 Single Tax Parcel and ID Endorsement. This section was revised to now include the newly adopted ALTA 18.3-06 endorsement.
  3. Section 10.59 ALTA 17.1-06 Indirect Access. A typographical error in the last sentence was fixed.
  4. Section 10.90 ALTA 36-06 Assignment of Rents or Leases Endorsement. The word “loan” was added in the first sentence in front of the word “policy” to clarify this Endorsement is only to be issued with loan policies.
  5. Section 10.107 - ALTA Endorsement 3.3-06 (Zoning - Completed Improvement - Non-Conforming use (New Jersey Variation)). This section was created to govern the issuance and charge for the new adopted ALTA 3.3-06 endorsement.

Copies of these endorsements and specific guidelines for the issuance of the same can be found on Virtual Underwriter.

Please make sure to contact PropertyInfo Customer Care or whichever title production software vendor you use to get the new rates/forms updated in your systems.

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.