Bulletin: NM2021005

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Bulletin: NM2021005

Bulletin Document
V 1
Date: August 25, 2021
To: All New Mexico Issuing Offices
RE: UNDERWRITING - Survey Coverage - Standard Exception 3

Dear Associates:

NMAC Rule 13.14.5.12 C. allows for standard exception 3 to be deleted if the insurer considers the additional risk to be acceptable, the additional required premium is paid, and the title insurer or its title insurance agent is furnished with a survey meeting the insurer’s underwriting standards. This bulletin sets out our underwriting standards for certain property. You may accept the subdivision plat as the survey meeting Stewart Title Guaranty Company’s underwriting standards.  

This coverage may only be offered on loan policies meeting the following requirements:

  • Platted 1-4 family residential lots;
  • Policy amount of $750,000.00 or less; and
  • No known ongoing construction

You should continue to except to easements of record and any significant encroachments, conflicts or unrecorded easements of which you have actual knowledge, either by a prior survey or inspection report in your possession, your search, or information obtained from a starter policy, which conforms to STG requirements.

If you are requested to provide this coverage on a subdivision plat on property that does not meet these requirements, you should consult with a Stewart Title Guaranty Company New Mexico underwriting counsel. Our underwriter will need information including the age of the house, all improvements, and the subdivision. Additionally, an affidavit is required from the owner(s) which states that they are not aware of any person or entity asserting a right to use any portion of the property. Based on the facts, other requirements may also be made.

Other properties still require a survey.

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:
  • None
Exceptions Manual:
  • None
Forms:
  • None