STG Installment Contract Purchaser's Endorsement (Contract for Deed) Guideline 1
Explanation:This endorsement is similar to an Option Endorsement. It insures the contract purchaser's right to purchase the title and it may provide limited insurance of priority of the contract over intervening rights.
Underwriting Requirements:(1) A Senior Underwriter must approve the issuance of this endorsement.
(2) The contract must be recorded in the public records. A memorandum may be acceptable if it actually contains an agreement to sell, it is signed by the seller, and it incorporates the terms of the contract.
(3) In order to insure priority of the contract over intervening rights, we must analyze state laws: some states conclude that the seller's interest may not be encumbered (at least by judgment liens) because of equitable conversion, some states recognize absolute priority of the contract, and some states limit the priority to payments before actual (or perhaps constructive) notice of intervening matters.
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):