- January 17, 1995
- All Policy Issuing Agents, Offices and Approved Attorneys - Utah
- Release Demand Letters
One of the matters that we reviewed in our last series of agent reviews related to the process of obtaining reconveyances and releases. We found that many settlement agents are using transmittal letters for payoff checks rather than demand letters. If you are issuing our policies based upon the strength of the payoff statement and transmittal letter, we believe that much stronger language should be used generally to accomplish this purpose. For your convenience, I enclose a copy of the type of demand letter that uses this type of language.
Please consider this issue and review your procedures in this important area. In the event of a claim under an issued policy, the language used by the settlement agent can be very important to our swift and inexpensive disposition of the matter.
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.