- February 07, 2002
- All New York State Office Counsel, Managers and Agents
- New Recommended Practices
The New York State Land Title Association has updated its Recommended Practices, effective immediately. Significant changes have been made to certain of the practices and I would urge everyone concerned to review the updated practices as soon as possible. As always, the purpose of the document is to provide a set of standards to be used by those in the industry to "...simplify and expedite the title examination and underwriting process". Adhere to the stated standards whenever possible, but not to the exclusion of the exercise of independent judgment, when appropriate.
Also note that the new publication is actually titled "Recommended Practices and Forms" (emphasis added). The forms referenced are letters of indemnity which have been amended to add language clarifying (hopefully) the continuing liability of the issuer of a performance, conditional performance or special mortgage or lien payoff letter where the recipient has issued its own indemnity letter to the next insurer. In other words, if you omitted an open mortgage on the basis of a performance letter from insurer "A" and that mortgage remains open, we will respond to a clearance request on that same mortgage by issuing our own letter of indemnity and not by referring the prospective insurer back to company "A". In addition, the new special mortgage and lien payoff letter form now makes clear that it is applicable where we are asked to respond to the situation where the proceeds of the insured mortgage were used to payoff a lien (for example, a judgment) other than an existing mortgage.
The new Recommended Practices and Forms is available by e-mail; by logging on to our website at http://www.stewartnewyork.com (on the home page of the website, click on Underwriter Resources) or by request only, by first class mail. The Recommended Practices are in the Adobe Acrobat format. The request a copy, please e-mail me at firstname.lastname@example.org or Courtney Chambliss in our Agency Dept. at email@example.com . Both Courtney and I may be reached by phone at (800) 433-0014.
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.