- May 08, 1998
- All Issuing Offices
- Losses Caused by Failure of Policy Preparer to Include Matters in Closing Documents
We have sustained many losses where the policy preparer consults only the title opinion or title commitment in drafting the exceptions for the policies. In such cases the preparer fails to examine the deed and other closing documents used at closing to see whether these documents contain any additional restrictive covenants, easements, mineral exceptions, or other exceptions of any character, etc. The exceptions, restrictive covenants, easements, etc. contained in the closing documents are just as valid as any shown in the commitment or title report and need to be excepted in the title policy which is issued.
These exceptions, like all exceptions, should include a reference to the official location of such documents, including any volume, page, and file number.
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.