- March 30, 1992
- All Florida Offices and Agents
- Right of Entry/Oil, Gas and Mineral Reservations Non-Use Commitment
Stewart Title Guaranty Company and all underwriters have received a notice dated March 24, 1992, from the Department of Insurance by way of Wally Senter, Title Insurance Coordinator, which states that the position of the Department of Insurance of the subject matter is as follows:
"When only a 'non-use commitment' is recorded on a parcel of land and the right of entry has not been released to an oil, gas and mineral reservation, it is considered a statutory violation to not delete paragraph 3. (b) of the Florida Form 9 Endorsement and make an exception on Schedule B.
The 'non-use commitment' is not considered a release of the reservation, even though there may be substantial development, but merely a limitation to the right of entry."
The reason for this is that the non-use commitment is not a full and unequivocal release of the right to enter but is conditional and the right to enter may revest.
Therefore, the Insurance Commissioner is simply and correctly requiring that a Form 9 Endorsement issued in such as instance be excepted from as to this non-use commitment.
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.