North Carolina Standard Exceptions and Requirements
R.E.P. Topic by Practice (Question)
R.E.P. Topic by Practice (Question)
Please identify the standard exceptions and requirements that are customarily used in your state.
REQUIREMENTS
Every Commitment
The Proposed Insured must notify the Company in writing of the name of any party not referred to in this Commitment who will obtain an interest in the Land or who will make a loan on the Land. The Company may then make additional Requirements or Exceptions.
Pay the agreed amount for the estate or interest to be insured.
Pay the premiums, fees, and charges for the Policy to the Company.
The Company requires the payment of all taxes and assessments and any penalties and interest, due and payable at closing.
Documents satisfactory to the Company that convey the Title or create the Deed of Trust to be insured, or both, must be properly authorized, executed, delivered, and recorded in the Public Records.
If the closing is a consumer or residential matter, the closing must be supervised by a licensed North Carolina attorney. A Certification of North Carolina Attorney must be obtained.
Receipt of premium and final title opinion from a non-employee, non-agent Stewart approved North Carolina licensed attorney (along with copies of the executed and recorded warranty deed and first three pages and signature pages of the deed of trust, if applicable) to issue a final policy. NCGS 58-26-1
Receipt of applicable NCLTA forms below (or substantially similar form approved by Company prior to closing), completed, executed and notarized, as follows:
NO RECENT (last 120 days) OR CONTEMPLATED CONSTRUCTION:
NCLTA FORM 1 (Owner Affidavit) from every seller (on sale) or borrower (on refinance) who has not contracted for recent or contemplated improvements on the Land or for a construction loan.
RECENTLY COMPLETED IMPROVEMENTS:
Non-MLA project
MLA project:
(1) Receipt of proof satisfactory to the Company that prior to closing or prior to first contracting for construction (whichever occurs first),
a. A Lien Agent was designated on the LiensNC.com website, AND
b. The Appointment of Lien Agent was posted at the Land.
(2) NCLTA FORM 5 (Owner Affidavit) from every Owner; AND
(3) NCLTA FORM 6 (MLA Lien Waiver) from every PLC-MLA.
CONSTRUCTION CONTEMPLATED OR IN PROCESS:
Non-MLA project
MLA project:
(1) Receipt of proof satisfactory to the Company that prior to closing or prior to first contracting for construction (whichever occurs first):
a. A Lien Agent was designated on the LiensNC.com website, AND
b. The Appointment of Lien Agent was posted at the Land;
(2) NCLTA FORM 5 (Owner Affidavit) from every Owner; AND;
(3) NCLTA FORM 6 (MLA Lien Waiver) or NCLTA FORM 7 (MLA Subordination of Liens) from every PLC-MLA.
MLA NOT Appointed Prior to Contracting for Labor Services or Materials
In all cases in which an MLA was required but not (timely) appointed, prior approval and terms of coverage (if any) by Company underwriting counsel is required.
Attorney certification that any and all homeowners' association dues and assessments, if any, are paid current.
Buyer/borrower's spouse, if any, to execute Deed of Trust.
Seller's spouse, if any, to execute deed.
The Commercial Real Estate Broker Lien Act applies to a sale or lease of commercial real estate; therefore, disclosure by the seller and buyer (lessor and lessee) or by the borrower when there is no sale required, in affidavit form stating (1) whether or not broker’s services have been engaged with regard to the management, sale, purchase, lease, or other conveyance of any interest in the Property and (2) whether or not a notice of lien for any such services have been received. Where the possibility of a right to file a broker’s lien exists, satisfaction (waiver, estoppel statement and payment) of such a lien right must occur prior to or at closing. If not so satisfied, an exception to any such right to a broker’s lien will appear in Schedule B of the Policy.
Note: You must provide the STG Privacy Notice(s) to individuals (including buyers, sellers, and borrowers) who are buying or selling their home or obtaining a loan on their home, at the earliest to occur of the following: (A) with the title insurance commitment, if you deliver a commitment to them for an owner's or loan policy; (B) at the time of closing, if you perform closing or escrow services, and you have not previously provided the STG Privacy Notice to them; (C) with the title policy, if you issue a title policy to them, and you have not previously provided the STG Privacy Notice to them.
Standard Exceptions:
- Rights or claims of parties in possession not shown by the public records.
- Easements, or claims of easements, not shown by the public records.
- Any lien, or right to a lien, for services, labor or materials heretofore or hereafter furnished, imposed by law and not shown by public records.
- Rights of dower, homestead or other marital rights of the spouse, if any, of any individual insured.
- Taxes or special assessments which are not shown as existing liens by the public records.
Such state of facts as would be disclosed by a current, accurate survey and inspection of the insured premises.