Bulletin: CA000021

Date:
April 10, 1995
To:
All California Issuing Offices
RE:
Limited Coverage Policies

Dear Associates:

It has recently come to our attention that another title company suffered a loss on the limited coverage policy wherein the last deed of record which they reflected did not disclose that the party named did not own 100% of the fee title. The limited coverage policy was issued insuring the validity and enforceability of the lender's lien. Apparently, the last record deed only gave to the named grantee a 50% interest and therefore the coverage under the policy was suspect as to their remaining 50% interest. Please advise the title officers issuing the limited coverage policies that they must check the tax rolls for the last assessed owner against the last deed of record to satisfy themselves that the last deed of record vests 100% of the interest. If they are uncertain that the last deed of record grants the named grantee therein the 100% interest, either a full ALTA loan policy should be written which, of course, will be supported by a complete search of the chain of title or further investigation be made before issuing the limited coverage policy. If you have any questions, please consult your underwriter.

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 Short Form Loan Policy (SFLP) 1994