- October 12, 2012
- All Massachusetts Issuing Offices
- Clarification Regarding Premium Calculations/Rate Schedule and First-Time Homebuyer Discount
As a clarification to the premium calculations contained in our Rate Schedule effective 8/1/2011 (MA Rate Book - August 1, 2011), please note that the rates set forth in the Rate Schedule apply to all 1-4 family residential transactions up to $2 million and are the rates that all Issuing Offices are required to charge the consumer. Rates over $2 million are negotiable. Please contact our Legal Department for premium rates over $2 million.
The Rate Schedule may also be used and is preferable for commercial transactions. However, in the event a negotiated rate is necessary, please contact our Legal Department.
First-Time Homebuyer Discount:
A first-time homebuyer discount in the amount of 10% is available and shall apply to the total premium for policies issued in connection with a 1-4 family residential purchase transaction by a first-time homebuyer only when issuing an Enhanced owner’s policy.
A first-time homebuyer shall mean an individual or individuals who are purchasing a primary residence and have not owned a home during the last three years.
The 10% discount will be collected from Stewart's portion of the premium and will not affect the premium retained by the agent.
When remitting a policy where the first-time homebuyer discount was applied, the remitted policy must be accompanied by a copy of the First-Time Homebuyer Confirmation Form signed by the buyer(s). For a copy of the First-Time Homebuyer Confirmation Form, click here.
If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.
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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.