Taxes, Real Property

Standard Exception Topic

TAX


Taxes, Real Property

The Company generally does not insure tax titles unless a judicial foreclosure occurred and the owner and foreclosed lienholders were personally served, or unless you also secure a deed from the owner and release from such foreclosed lienholders. You must confirm that all taxes and assessments that are liens on the land are satisfied or excepted (by general or specific exception).

Requirements

Standard Exception Subtopic

TAXR01

STG

10/11/2010
V 1

Possible Retroactive Taxes

Unless all of the land is properly assessed and all the taxes and assessments paid thereon, the Policy when issued will contain the following exception:
“Retroactive assessments for taxes against the land, and all interest and penalties which may accrue.”
Comment: You should use this exception if part of the land or improvements on the land have not been included in assessments (e.g., house not included; abandoned street not assessed).

See Underwriting Manual


Standard Exception Subtopic

TAXR02

STG

10/11/2010
V 1

Payment of Taxes at Closing

The Company requires the payment of all taxes and assessments and any penalties and interest, due and payable at closing.
Comment: You should use this exception if you close the transaction.

See Underwriting Manual


Standard Exception Subtopic

TAXR03

STG

10/11/2010
V 1

Payment of Taxes as of Policy Date

The Company requires the payment of all taxes and assessments and any penalties and interest, due and payable at Date of Policy.
Comment: You should use this exception if you will not close the transaction.

See Underwriting Manual


Standard Exception Subtopic

TAXR04

STG

10/11/2010
V 1

Payment of Prior Taxes

The Company requires the payment of all taxes and assessments and any penalties and interest for the year ______ and prior years.
Comment: This is an alternative method to require the payment of all taxes.

See Underwriting Manual


Standard Exception Subtopic

TAXR05

STG

10/11/2010
V 1

Tax Deed - Administrative (Nonjudicial) Tax Foreclosure or Potential Defect in Judicial Proceeding

The interest of _________________ ("Taxpayer") acquired by deed dated ______, recorded ______________, was subsequently conveyed by Tax Deed dated ____________, recorded ________. The Company requires for its review:

(a) quit claim deed from the Taxpayer and discharge or release of lien from all lienholders of record, if any;
(b) quiet title final judgment extinguishing the interests of the Taxpayer and all lienholders of record, if any, together with all proofs of service supporting this court action; or
(c) certification acceptable to the Company confirming compliance with all applicable state laws and due process requirements relating to the tax foreclosure.

At that time, the Company may make additional requirements or exceptions.

Comment: You should raise this requirement if the tax foreclosure was a summary (nonjudicial) sale in order to confirm that all rights of the taxpayer and other lienholders have been extinguished. You should raise this requirement after a judicial tax foreclosure proceeding if there is any question about the propriety of the foreclosure - e.g., notice to the taxpayer - which might cause the foreclosure to be defective. If appropriate, you may modify the initial recital to conform to your jurisdiction's tax foreclosure procedures. For example, you may wish to reference a "Judgment of Foreclosure in favor of a governmental unit" instead of a "Tax Deed" if that is the mechanism used to transfer title from the Taxpayer.

A certification confirming compliance with applicable foreclosure procedures (referenced in section (c) above) may be relied upon to satisfy this requirement only if:

(1) your state has issued a Bulletin authorizing such use, and
(2) the certification is provided by a source acceptable to STGC.

A certification from the following source(s) is/are acceptable:

Tax Title Services
600 Anton Blvd, 11th Floor
Costa Mesa, CA 92626
Phone: (714) 371-4041
Fax: (714) 371-4189
E-mail: dschumacher@taxtitleservices.com

Please refer to the specific Bulletin issued for your state, or contact your state, district or division counsel. If no Bulletin has been issued for your state, please delete section (c).

See Underwriting Manual


Standard Exception Subtopic

TAXR06

STG

10/11/2010
V 1

Delinquent Assessments

The payments for _____________ assessments are now delinquent. The amount necessary to bring the payments current is: $________ and any penalties and interest, if paid by ____________.
Comment: This requirement describes specific, known delinquent assessments.

See Underwriting Manual


Standard Exception Subtopic

TAXR07

STG

10/11/2010
V 1

Awaiting Tax Report

For Informational Purposes Only: A report on taxes and assessments has been ordered. The Company will send a tax supplement when it is received.
Comment: This note may be used if a tax search has not yet been secured.

See Underwriting Manual


Standard Exception Subtopic

TAXR08 OR

STG

10/11/2010
V 1

Property Transferred to “tax-exempt government transferee” - Oregon

The county clerk will require the instrument that conveys fee title to a tax-exempt government transferee be accompanied by a certificate issued by the county assessor attesting that all charges against real property as of the date of recording have been paid pursuant to Chapter 96, Oregon Laws 2015 (House Bill 2127).


Exceptions

Standard Exception Subtopic

TAXX01

ALTA

10/11/2010
V 1

Additional Taxes Because of Improvements

Any possible additional tax assessment and any penalties and interest, because of construction and improvements.
Comment: If improvements have not been properly included in the current or prior years’ assessments, you should add this exception.

Standard Exception Subtopic

TAXX02

ALTA

10/11/2010
V 1

Subsequent Taxes Because of Change in Use

Subsequent assessments or taxes and any penalties and interest, due to any change in the land usage or loss of exemption.
Comment: You should use this exception if the land has been allowed special taxation or exemption and a change in use would cause retroactive assessments.

Standard Exception Subtopic

TAXX03

ALTA

10/11/2010
V 1

Retroactive Taxes

Retroactive assessments for taxes against the land, and all interest and penalties which may accrue.
Comment: You should use this exception if the land (or improvements) or a portion of the land (e.g., an abandoned road) has not been included in tax assessments.

Standard Exception Subtopic

TAXX04

ALTA

10/11/2010
V 1

Taxes for Calendar Year

Taxes and assessments for the year(s) _______ plus any penalties and interest which may accrue.
Comment: You may use this exception for taxes assessed for a calendar year.

Standard Exception Subtopic

TAXX05

ALTA

10/11/2010
V 1

Taxes For Fiscal Year

Taxes and assessments for the fiscal year ending _______, plus any penalties and interest which may accrue.
Comment: You may use this exception for taxes assessed for a fiscal year.

Standard Exception Subtopic

TAXX06

ALTA

10/11/2010
V 1

Taxes Paid Through Quarter

Lien for ____________ taxes and any penalties and interest. Taxes paid through _______ quarter.
Comment: You may use this exception to insure payment of taxes through a stated quarter.

Standard Exception Subtopic

TAXX07

STG

10/11/2010
V 1

Taxing District

The land is in ______________________ district and is subject to the payment of taxes or assessments levied by said district.
Comment: You should use this exception for information if the land is in a district disclosed in the public records.

See Underwriting Manual


Standard Exception Subtopic

TAXX08

STG

10/11/2010
V 1

Taxing District (Refer to Recording Date)

The land is in _________________________ district as reflected by the notice recorded _________________ and is subject to the payment of taxes or assessments levied by said district.
Comment: This is an alternative exception to use for information if the land is in a district disclosed in the public records.

See Underwriting Manual


Standard Exception Subtopic

TAXX09

STG

10/11/2010
V 1

Notice of Postponed Taxes

A lien to secure all sums due for postponed real property taxes and any penalties and interest, on said land, evidenced by a notice of lien recorded ________________.
Comment: You may use this exception if a notice of lien to secure postponed taxes (e.g., because of special use) is recorded.

See Underwriting Manual


Standard Exception Subtopic

TAXX10

STG

10/11/2010
V 1

City and County Taxes

General and Special City and/or County taxes, including any assessments collected with taxes, to be levied for the fiscal year 19___ - 19___ which are a lien not yet payable.
Comment: You may use this exception for city and county taxes if they are not otherwise excepted in a more general tax exception.

See Underwriting Manual


Standard Exception Subtopic

TAXX11

STG

10/11/2010
V 1

Taxes and Assessments Due Subsequent to Policy Date

Taxes and assessments that become due and payable subsequent to Date of Policy.

Comment: This is a general exception to subsequent taxes and assessments.

 

 

See Underwriting Manual


Standard Exception Subtopic

TAXX12

STG

10/11/2010
V 1

Taxes Not Yet Due

All taxes for 199___ and subsequent years, which are a lien not yet payable.
Comment: This is a general exception for taxes not yet payable.

See Underwriting Manual


Standard Exception Subtopic

TAXX13

STG

10/11/2010
V 1

Redemption Rights

Rights of redemption in favor of _______________________ in connection with the suit to foreclose lien reflected by Deed recorded _______________ for a period of __________________ after ______________________________.
Comment: You may use this exception if the Company is willing to insure a tax foreclosure and if redemption rights have not expired.

Note: You may add additional local exceptions here. Please consult with our underwriting personnel in preparing appropriate provisions.

See Underwriting Manual


Standard Exception Subtopic

TAXX14 MI

STG

10/11/2010
V 1

Retroactive Revaluation - Michigan

Taxes and assessments that become a lien against the Land after Date of Policy. The Company assumes no liability for tax increases occasioned by retroactive revaluation, changes in the land usage or loss of any principal residence exemption status for the Land.

Comment: In commercial transactions or in those instances where the property is determined to be non-homestead, the exception may be modified to remove the wording "...or loss of any principal residence exemption status...". Otherwise, the rest of the exception should remain the same.