VA Decedents Requirements

Commitment Requirement for Decedent’s Estate Transfer:

A title insurance commitment for the sale of real estate from a decedent’s estate to a bona fide purchaser [simply defined as a party paying market value for the property and without knowledge of any possible claims against the estate - e.g., not an heir “buying out” the other heirs], must include the appropriate following language:

Intestate Decedent (no will admitted to probate):

The property to be insured is subject to the following exceptions to coverage due to the death of _______________________________ on ________________________________.

(1) possible debts of said decedent or against said decedent’s estate;

(2) possible federal and/or state estate and/or inheritance taxes;

(3) possible discovery and probate of the last will of said decedent.                                                                                  

Such matters shall appear as exceptions in any policy issued hereunder, unless an Indemnity and Escrow Agreement and one of the following are furnished to, reviewed by, and accepted by the Company. The Company reserves the right to make further requirements after review of same. The Company must be provided an Indemnity and Escrow Agreement in the form attached and:

(a) a corporate surety bond covering the net proceeds of the sale, which bond shall run in favor of the Company; or,

(b) a cash escrow of the net proceeds of the sale; or,

(c) payment to the Company of an extra-hazardous premium at the rate of $2.00/$1,000 of the Amount of Coverage stated in Schedule A, with a minimum payment of $250.00.

Testate Decedent (will admitted to probate):

The property to be insured is subject to the following exceptions to coverage due to the death of _______________________________ on _______________________. 

(1) possible debts of said decedent or against said decedent’s estate;

(2) possible federal and/or state estate and/or inheritance taxes;

(3) possible appeal from the order admitting the will of said decedent to probate;

(4) possible suit to impeach the will of said decedent;

(5) possible discovery and probate of a later will of said decedent;

(6) possible augmented estate interest.

Such matters shall appear as exceptions in any policy issued hereunder, unless an Indemnity and Escrow Agreement and one of the following are furnished to, reviewed by, and accepted by the Company. The Company reserves the right to make further requirements after review of same. The Company must be provided an Indemnity and Escrow Agreement in the form attached and:

(a) a corporate surety bond in the amount of the net proceeds of the sale, which bond shall run in favor of the Company; or,

(b) a cash escrow of the net proceeds of the sale; or,

(c) payment to the Company of an extra-hazardous premium at the rate of $2.00/$1,000 of the Amount of Coverage stated in Schedule A, with a minimum payment of $250.00.

 

 

Procedures and requirements when dealing with deceased owner

 

REQUIREMENTS:

Always Use:

1. Supply company with death certificate of _________________. The company hereby reserves the right to make additional requirements/exceptions after review of said death certificate.

2. Supply satisfactory evidence as to payment of Federal Estate and State Inheritances Taxes, if any, due on the estate of _________________.

In addition, use either 3. A., for intestate cases (without a will), or 3. B., for testate cases (with a will):

3.   A. The property to be insured is subject to the following exceptions to coverage due to the death of _________________, on __________:

1)   possible debts of said decedent, or against said estate;

2)   possible federal and state estate and/or inheritance taxes;

A corporate surety bond covering the open estate of said decedent must be furnished to Stewart Title Guaranty Company and approved by it prior to closing in the amount of $(net proceeds), or, in lieu thereof, extra-hazardous risk premium being paid to Stewart Title Guaranty Company, in the amount of $2.00/$1,000 of the SALES PRICE.

B. The property to be insured is subject to the following exceptions to coverage due to the death of _________________, on __________:

1)   possible debts of said decedent, or against said estate;
2)   possible federal and state estate and/or inheritance taxes;
3)   possible appeal from the order admitting probate of the last will and testament of said decedent;
4)   possible suit to impeach the said will of decedent;

Include the following language:

4.   Company must be provided:

1.   A corporate surety bond covering the open estate of said decedent naming Stewart Title Guaranty Company as loss payee, approved by Company prior to closing in the amount of $(net proceeds);

OR

2.   Extra-hazardous risk premium paid to Stewart Title Guaranty Company, in the amount of $2.00/$1,000 of the SALES PRICE and execution by seller of Company’s Indemnity Agreement;

OR

3.   Escrow of the net proceeds of sale for a period of one year from date of death and execution by seller of Company’s Indemnity and Escrow Agreement.

Options as to bond payments:

Pay STGC $2.00/$1,000 based on sales price

□   Remit $2.00/$1,000 to Stewart Title Guaranty Company
□   Remit on a separate register and include the owner's policy number

Pay bonding company their rate (usually $5.00/$1,000, based on the proceeds amount)

□   One bonding company you may contact:
□   Scott Insurance

                        Bond Department
                        1-800-365-0101

 

 

No guidelines are available for this form at this time.