- April 07, 1999
- All Colorado Issuing Offices
- Written Closing Instructions
It has been brought to our attention that not all issuing offices in Colorado are obtaining written closing instructions signed by all parties when closing a transaction. Title Insurance Regulation 3-5-1(VII)(G) states as follows: "No title entity shall provide closing and settlement services without receiving written instructions from all necessary parties". However, no official form for these closing instructions was promulgated by the Colorado Division of Insurance.
The Colorado Real Estate Commission created Rule F-17 for its Realtor licensees. Rule F-17 states as follows:
When it is appropriate for a broker to prepare closing instructions in connection with the closing of a real estate transaction, the broker shall use the form captioned "Closing Instructions" effective September 1, 1995.
A copy of the Real Estate Commission approved form is attached. Although the Real Estate Commission has recommended that its Realtor licensees have this form filled out and signed at the time the contract is entered into, as a title entity providing closing services we recommend that this form be completed and signed at the time of closing and the original be retained in your file. Concurrently, we are seeking clarification from the Colorado Division of Insurance as to the specific form of closing instructions required by Title Insurance Regulation 3-5-1(VII)(G) if different from that form contemplated in Rule F-17.
Your underwriting contract does not cover these matters. Therefore, you must make the final decision on the specific form of closing instructions to be collected at closing.
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:
- CO000011 Real Estate Commission Approved Closing Instructions
- MU000024 Escrow/Title Instructions Language
- NL000037 This bulletin number intentionally omitted.
- NL000040 Closing Instructions\Closing Representation
- NL000045 Receipting for Money You Do Not Have
- Underwriting Manual:
- 5.16 Escrow Closings
- Exceptions Manual:
- CO Closing Instructions 1995