- December 29, 1994
- All California Issuing Offices and Agents
- California Insurance Code Section 1241.30
NOTE: This Law Is Effective January 1, 1995
This act provides that when issuing a preliminary report constituting an offer to issue an owner's policy of title insurance, a preliminary report must incorporate the following statement in bold type on the front page of the preliminary report.
Please read the exceptions shown or referred to below and the exceptions and exclusions set forth in Exhibit A of the preliminary report carefully. The exceptions and exclusions are meant to provide you with notice of matters which are not covered under the terms of the title insurance policy and should be carefully considered.
It is important to note that this preliminary report is not a written representation as to the condition of title and may not list all liens, defects, and encumbrances affecting title to the land.
This act specifically states that it does not modify any of the provisions of Section 12340.11 of the Insurance Code which defines "preliminary reports", "commitments", and "binders".
The revised preliminary report coversheets and standard exception/exclusion pages filed by CLTA are available through the reference to this CLTA Preliminary Report as shown below. Please amend your forms accordingly. There is no need to have different language on preliminary reports which contemplate only lender's insurance. Please amend your preliminary reports for all purposes. Contact your Stewart Title Guaranty representative should you have any questions.
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.