- November 01, 1994
- All Maryland Policy Writing Agents
- Revised Policy Regarding Deletion of Survey Exception from Lenders Title Insurance Policies on Properties in Maryland
This Bulletin supersedes District Bulletin 93-01 dated April 20, 1993 in its entirety.
Effective immediately, Stewart will no longer require a satisfactory location survey in order to issue its loan policies without the so-called survey exception on 1-4 family residential properties located in Maryland provided that the buyers/borrowers execute an affidavit available through the forms reference at the end of this bulletin and pay a special risk premium in the amount of $50.00. Construction loan policies are not covered by this Bulletin.
This policy applies to both transfers (new as well as previously owned homes) and refinances. It applies to properties improved by free standing dwellings as well as townhomes and to lots of up to 25 acres in area.
If the loan policy to be issued is our standard (long form) ALTA 1992 and no survey is obtained you must issue the survey endorsement available through the forms reference at the end of this bulletin. However, if you issue one of the various short form policies available from Stewart, no endorsement need be issued.
$25.00 of each special risk premium collected must be remitted to Stewart through this office.
When policies are reported to this office, a copy of the completed affidavit and endorsement (where applicable) must be attached.
I want it understood that just because Stewart will no longer require a satisfactory location survey in order to issue Lenders Title Policies with survey coverage does not mean that location surveys no longer have a place in residential real estate transactions. On the contrary, informed buyers will continue to insist on them for their own protection and all buyers should be encouraged to obtain one. Also, be sure to check with lenders to make sure they have not required a survey in their loan commitment letter or closing instructions. You can expect that due to pressure from investors, some lenders will continue to require location surveys regardless of our policy in this regard.
All questions or requests for clarification should be directed to the undersigned.
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.