Bulletin: CA000002

Date:
May 17, 1991
To:
All California Issuing Offices
RE:
Recorded Document Certificate Guarantee

Dear Associates:

You may be asked to issue a title search for discovery of potential hazardous waste sites by clients who are investigating the prior ownership and uses of subject property in order to facilitate an innocent land owner or purchaser defense which may be available under the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (CERCLA). Please see referenced form at the end of this bulletin. You should use these agreements in an attempt to protect your company from unlimited abstractor's liability. This form is a certificate and not a guaranty, and in no way extends liability to the Underwriter.

If you have a client who requests a CLTA Recorded Document Guarantee form, it is available in California at our filed rate (currently $1,000). The limit of liability will be $25,000.00.

Both the Certificate and Guarantee forms allow for a choice on page two, paragraphs 3a and 3b, between documents posted in the title plant or documents recorded in the county records. It is much preferable to issue only under 3a - Documents posted in the Title Plant, because 3b - Documents Recorded in the County Records is a much broader and more expensive search which is required of you.

Please be sure to use the application with the Certificate or Guarantee to expressly limit your liability on any environmental search. By not using these or similar forms limiting liability, you could place your company at great risk.

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:
CLTA Recorded Document Guarantee (05/16/90) 27