- October 30, 1991
- All Underwritten Companies
- Religious Corporation
Due to the rash of claims affecting the title industry with respect to third parties contesting the validity of Court Orders Approving the Sale of Real Property from a Religious Corporation, Stewart Title has decided to limit the insurance thereof. Accordingly, the Company has decided to decline to insure any title in which a corporation formed under the Religious Corporation Law, Not-For-Profit Law (Religious Corporation Subsection), or similar state Statute, where such corporation has held title to the subject property within the last 21 years.
Whereas, the Court Order Approving the Sale of the Premises with requisite Corporate Approvals may be presented, the present litigation trend has shown that the risk of challenging the Corporate authority to convey is a real and highly likely one.
However, if there is a specific case that you wish us to consider, please contact the undersigned at your earliest convenience.
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.