CLTA Homeowner's Policy of Title Insurance Guideline 1998
Explanation:These guidelines are to be used in conjunction with the CLTA Homeowners Policy. This policy is to be issued only when specifically requested in writing by the prospective insured(s). These guidelines are in addition to the guidelines previously promulgated for use with the Stewart Title Guaranty "Gold" policy.
Underwriting Requirements:1. This policy is limited to one-to-four unit residential properties only.
2. The policy was intended for use in "Lot, Block, Tract" subdivisions, or condominiums, with simple legal descriptions. If the property in question has any other form of legal description, approval must be obtained from underwriting counsel.
3. Inquiry must be made whether any addition or remodeling has been done on the property since its original construction. If any addition or remodeling has taken place, a determination must be made whether the work was done pursuant to permit. This can be done either by obtaining a full set of the permits issued for the premises, and comparing them with the apparent work on the property, or by comparing the permits to the content of a sworn statement by the seller. This will require a thorough study of the permits and the statement, and should justify an extra work charge in many instances.
4. If the legal description is a lot and block , there is no need to do any further underwriting regarding the Map Act coverage. If the description is other than lot and block, the underwriting considerations will be the same as for the issuance of a 116.7 endorsement.
5. If mineral rights have been reserved without waiving rights of surface entry in some manner, serious consideration should be given to deletion of the insurance against structural damage resulting from mineral extraction, especially in areas of mineral activity. This may require case by case consideration by underwriting counsel, to whom the matter should be submitted.
6. The map attached to the policy should be a copy of the relevant portion of the tract map, or of a current survey if a survey is available. If the property in question is a metes and bounds parcel, the description must coincide precisely with a careful reading of whatever map is being used.
7. Since the CLTA Homeowners Policy is a form of extended coverage, the issue of mechanics liens must also be considered.
(a) If the property is a new home, you will need to be sure that all potential lien claimants have released or waived their potential claims before or at the closing.
(b) If the property is not a new home, inspection or seller's(s) affidavit regarding any work of improvement, remodeling or repair within the past 180 days must be obtained, and subjected to the same consideration as any other potential mechanic lien.
Also see STG GOLD Comprehensive Protection Owner's Policy (West Coast) Guideline 1997.
The underwriting guidelines contained herein have been provided for general reference. The facts, circumstances, and location of the subject property should be considered when determining the issuance of the requested form or endorsement. Please note that all of the forms and endorsements included in this system may not be available in all states. Accordingly, please contact the appropriate Stewart Title Guaranty Company underwriting personnel in order to determine availability.
Compliance with the underwriting guidelines contained herein in no way obligates Stewart Title Guaranty Company to issue any form or endorsement.
This guideline applies to the following form(s):