- July 16, 2008
- All North Carolina Issuing Offices
- Underwriting Reminder
When insuring a transaction where the seller, buyer or borrower is a corporation please remember to verify the authority of the person with whom you are dealing by contacting the corporate office. This is an area that can cause frauds resulting in large losses due to the general size of these transactions. This is especially true if the corporation is an out-of-state corporation and is being represented by a local "agent". In some cases, the agent may have no authority whatsoever and the corporation is not aware of the transaction.
This works on the same principle that Lynn Wilburn described in his TIPS presentation this year where you have someone trying to borrow money against property that is owned by an out-of-state owner and the title agent/attorney does not meet with the representative or does not verify the authority of the individual to sell or mortgage the property.
In other words, be suspicious of any such transaction and ask questions so as to avoid potential fraud.
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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.