- January 04, 2013
- All Michigan Issuing Offices
- Bank of America - REO/Title Affidavit Forms
Please find attached, the Owner’s/Servicer’s Affidavit and Certificate of Domestic Status forms, which forms Bank of America, N.A. (BANA) proposes to use on its REO sales. In the form, BANA represents and certifies to the title company as follows:
- That there exist no unrecorded agreements entered into by BANA affecting the property.
- That there were no materials supplied nor labor or work performed for the benefit of BANA for which payment was not timely made.
- That BANA is not a foreign corporation, partnership, trust nor estate for purposes of FIRPTA or the Internal Revenue Code and Income Tax Regulations.
The form also indemnifies the named title company against loss sustained as a result of:
- Any reliance made on the representations made in the Affidavit/Certificate.
- The filing of any lien by a contractor or materialsman for work or materials contracted for by BANA.
- The recording of any Federal or State tax lien, or creditor’s judgment lien against BANA during their period of ownership of the property.
When insuring an REO sale out from BANA, and upon submission of an executed Affidavit/Certificate indemnifying Stewart Title Guaranty Company, you may rely on the Affidavit to remove state tax liens for failure of BANA to have revoked the Homestead tax status for the property. Please consult with a Michigan underwriter regarding other liens, such as judgment liens or federal or state tax liens.
Please note that the form does not cover the other items normally found in a Seller’s/Owner’s Affidavit such as parties in possession, unrecorded easements or claims of easements, overlaps, boundary line disputes or matters that would be disclosed by an accurate survey or an inspection of the property. Thus, we must leave on those pre-printed or “standard exceptions” when issuing an ALTA 2006 Owner’s Policy. To remove the pre-printed or standard exceptions, or to issue the ALTA Homeowner’s Policy of insurance, independent verification of those items must be made by the Agent or Affiliate before insuring.
If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.
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