Title insurance applications or title commitments should not be accepted or issued for a nominal amount, such as $1,000 or $2,500.
The showing of a nominal amount in a title commitment creates many disadvantages for the Company in the areas of liability, risk and compensation.
A reasonable effort should be made to determine the value of the property or the size of the expected transaction. This should be done at the time an application is presented or prior to the issuance of the commitment.
If the proper information is not furnished or if it appears that the amount suggested by the applicant is substantially less than the actual value of the property, the following procedure must be followed:
- The words "To Be Agreed Upon" must be inserted in the space assigned for the amount of the policy to be issued.