- October 19, 2000
- All Issuing Offices
- Checking Buyer's Name
You do not need to check the buyer's name at time of purchase for any matters, such as federal or state judgments, federal or state tax liens, or bankruptcies, under the following circumstances:
You are issuing an owner's title insurance policy to that buyer or a loan policy covering a purchase money mortgage to the lender;
The land is one-to-four family residential property not exceeding 25 acres;
The purchase money mortgage from the buyer to the lender is executed at the same time as the deed to the buyer and is filed for record on the same day as the deed to the buyer; and
The financing is only for purchase money and normal closing costs.
If the financing includes a revolving line of credit or money advanced other than for purchase money and normal closing costs, you should check the buyer's name.
If the buyer later sells or mortgages the land for other purposes, you should do a full check for the applicable time of that party's name.
If you issue a Schedule B Part II to the loan policy (where available), you should check the buyer's name.
You should also determine whether your lender's closing instructions require name checks of the buyer, and you should comply with those instructions. If the lender's instructions prohibit junior liens of any type (not just junior financing), you should do a full check of the buyer's name.
On commercial property, it is customary to check the buyer's name at
time of purchase for any matters such as federal or state judgments, federal
or state tax liens, or bankruptcies on commercial land. Please call our underwriting
personnel if you have any questions concerning this practice.
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.
- Bulletins Replaced:
- Related Bulletins:
- Underwriting Manual:
- 12.28.13 Priorities (Mortgages)
- Exceptions Manual: