STG Home Owner's Title (HOT) Policy Guideline 1996
Explanation:This policy is issued only under the following circumstances:
Do not issue this Policy if the land is commercial or if the improvements were recently built or if the property is unimproved land.
This policy is similar to the Short Form Loan Policy. It contains standard policy coverage and standard exceptions. You do not need to add specific exceptions on the Addendum unless the exceptions revealed by the examination do not comply with our instructions. The standard Schedule B exceptions are taxes not yet due; covenants, conditions, and restrictions; easements; minerals rights; and survey issues.
This policy contains a number of coverages that make it attractive to the insured: it is easy to read; it insures against mechanic's liens for prior work; it contains zoning and survey coverage; it continues if the land is conveyed to a family trust; it provides affirmative insurance as to mineral interests; and it contains additional inflation coverage (50%).
Underwriting Requirements:Do your normal title examination.
Verify that the transaction is a resale of an existing home, not a new home.
Have the seller verify that there were no repairs or other construction within the last year.
Have the seller verify that no one else is occupying or renting the land (or except to the lease or contract), that the land does not violate zoning laws or restrictions, and that the seller knows of no encroachments or survey issues.
Determine that all taxes, charges, and assessments are paid current and are not yet due and payable.
Determine that all condominium or homeowner's assessments are paid current and are not yet due and payable.
Determine that the only easements are normal utility easements along the boundary of the land or servicing the home; if pipeline or other easements exist, you should issue the standard ALTA Owner's Policy.
You may issue if there are outstanding minerals, royalties, and mineral leases.
If you know of any encroachments, conflicts in boundaries, or survey problems on the land or common to the subdivision, do not issue this policy.
You must show any mortgages, liens, lis pendens, or notices of environmental matters on the addendum. If the examination reveals exceptions to title other than the subdivision restrictions, utility easements, or minerals, you must show them on the addendum.
Do not issue this policy if you know that the existing improvements violate zoning laws or if the restrictions prohibit the current improvements.
We have printed special commitment inserts that may be used if you intend to issue this policy. If you use our special commitment inserts for the HOT Policy, you only need to add specific exceptions on the commitment to outstanding liens or other matters that the examination reveals and that these guidelines require to be shown in the Addendum to the HOT Policy.
The underwriting guidelines contained herein have been provided for general reference. The facts, circumstances, and location of the subject property should be considered when determining the issuance of the requested form or endorsement. Please note that all of the forms and endorsements included in this system may not be available in all states. Accordingly, please contact the appropriate Stewart Title Guaranty Company underwriting personnel in order to determine availability.
Compliance with the underwriting guidelines contained herein in no way obligates Stewart Title Guaranty Company to issue any form or endorsement.
This guideline applies to the following form(s):