Basic Manual Of Title Insurance Section III
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Effective November 1, 2024 (Order 2024-8851)
R-6. Subsequent Issuance of Mortgagee Policy
1. Subsequent to Owner Policy - When a Mortgagee Policy( ies) is requested, subsequent to the issuance of an Owner Policy which excepted to the Vendor's Lien, the premium will be one-half the Basic Rate. The lien to be guaranteed should be as originally developed, and excepted to in the Owner Policy, and not an extension or rearrangement thereof. Such Mortgagee Policy( ies) will be released in the quantity of the present overdue balance of stated insolvency. The Company shall be provided such evidence as it may require validating such unpaid balance, that the indebtedness is not in default which there has been no acceleration of maturity. THIS RULE MAY NOT BE APPLIED in connection with the issuance of a series of Mortgagee Policies released by factor of notes being allocated to private systems in connection with a master policy covering the aggregate indebtedness, including enhancements. Individual Mortgagee Policies should be issued at the Basic Rates.
2. Subsequent to Mortgagee Policy - When a Mortgagee Policy( ies) is asked for, for any factor whatsoever, on a lien already covered by an existing Mortgagee Policy( ies), but not on a renewal or extension thereof, the new policy being in the amount of the current unsettled balance of the indebtedness, the premium for the new policy will be at the Basic Rate, but a credit for three-tenths (3/10) of stated premium may be allowed.
3. Subsequent to Mortgagee Policy - When an insolvent insurance company is put in irreversible receivership by a court of qualified jurisdiction and a Mortgagee Policy( ies) is asked for on a lien already covered by an existing Mortgagee Policy( ies) of said insolvent insurance company, but not on a loan to use up, restore, extend or satisfy an existing lien, the new policy remaining in the amount of the existing unpaid balance of the insolvency, the premium for the brand-new policy will be at the fundamental rate, but a credit for half of stated premium shall be permitted, unless such credit would decrease the premium to less than the minimum Basic Rate, in which case the rate shall be the minimum Basic Rate. The insured shall surrender the existing Mortgagee Policy( ies) to the Company when positioning the order for a brand-new Mortgagee Policy( ies). The date of Policy for the brand-new policy( ies) will be the same Date of Policy as the existing Mortgagee Policy( ies).
R-7. Mortgagee Policies Covering First and Subordinate Liens Issued Simultaneously
When a Mortgagee Policy is issued on a Very first Lien, and other policy( ies) is provided on Subordinate Lien( s), created in the very same deal, covering the same land or a part thereof, the premium for the First Lien policy will be computed on the overall of the combined liens; the premium for each Subordinate Lien policy shall be $5.00.
R-8. Loan Policy on a Loan to Take Up, Renew, Extend or Satisfy an Existing Lien( s)
When a Loan Policy is provided on a loan that fully takes up, renews, extends, or satisfies several existing liens that are currently insured by one or more existing Loan Policies, the brand-new Loan Policy must remain in the amount of the note of the brand-new loan. The premium for the new Loan Policy is minimized by a credit. The credit is calculated as follows:
1. Calculate the Basic Premium on the composed reward balance of the existing loan or the initial amount of that loan, whichever is less; and
2. Multiply by the percentage listed below for the time from the existing Loan Policy date to the new Loan Policy date: 1. 50% when four years or less;
2. 25% when more than 4 years but less than eight years; or
The premium for the brand-new Loan Policy is the Basic Premium less the credit; however not less than the minimum Basic Premium.
The credit does not use if any residential or commercial property not covered in the existing Loan Policy( ies) is included in the brand-new Loan Policy.
When the existing Loan Policy( ies) consisted of more than one chain of title, and the brand-new Loan Policy likewise consists of one or more of the initial chains of title, the minimum Basic Premium needs to be charged for each extra chain of title. (See Rate Rule R-9 for the definition of "additional chain.")
When two or more brand-new Loan Policies are released on several loans to totally take up, restore, extend, or satisfy an existing lien guaranteed by a single Loan Policy, the premium for each brand-new Loan Policy, is the Basic Premium. The credit computed above should be applied to the premium for the biggest Loan Policy. A credit must be given even if not all of the new loans are insured or if only one of the new loans is insured.
THIS RULE MAY NOT BE APPLIED in connection with the issuance of a series of Loan Policies released by factor of notes being allocated to specific units in connection with a master policy covering the aggregate indebtedness, including improvements. Except as otherwise offered in this rule, individual Loan Policies should be released at the Basic Rate.
R-9. Additional Chains of Title
In case more than one chain of title is involved in the issuance (including determination of insurability of access) of any policy, the Company shall charge the minimum policy Basic Premium Rate for each additional chain. For function of using this rule, adjoining tracts in one county will be treated as one chain, offered record title to the land and record title to the access is vested in one owner at the time application is made. Each noncontiguous parcel having a separate chain will be treated as a separate chain, other than where two or more lots in the exact same platted neighborhood, and having the very same plat recording date, belong to the exact same owner, then such shall be treated as one chain. If the tracts depend on more than one county, there are separate chains of title in each county. No additional chain charge might be made for determination of insurability of access to land located within a subdivision, provided: (i) the subdivision lies in only one county, and (ii) the plat of the subdivision has actually been legally authorized by an authorized governmental entity, is appropriately tape-recorded, and the roadways shown thereon have actually been devoted for public use or for the usage of the owners of lots located in the subdivision.
R-10. Owner's Policies - City Subdivision, Acreage Subdivisions, Industrial Tracts
Rate Rule R-10 is rescinded, efficient September 1, 2013, due to obsolescence.
Effective January 3, 2014 (Order 2806)
R-11. Loan Policy Endorsements
Applicable just as offered in Procedural Rule P-9.
Assignment of Mortgage Endorsement (Form T-3, Endorsement Instruction III): If issued within twelve months after the date of the policy, the premium is the minimum Basic Premium Rate.
If provided more than twelve months after the date of the policy, the premium is the minimum Basic Premium Rate plus $100.00 for each additional complete or partial twelve-month duration.
However, the optimal premium collected must not be more than 50% of the premium for the loan policy quantity based upon the current Schedule of Basic Premium Rates
If issued within twelve months after the date of the policy, the premium is the minimum Basic Premium Rate.
If released more than twelve months after the date of the policy, the premium is the minimum Basic Premium Rate plus $25.00 for each extra complete or partial twelve-month duration.
However, the maximum premium gathered should not be more than 50% of the premium for the loan policy quantity based upon the present Schedule of Basic Premium Rates.
If the land in the policy is Residential Real Residential or commercial property, the premium is $50.00.
If the land in the policy is not Residential Real Residential or commercial property, the premium is $100.00.
The premium for the Variable Rate Mortgage Endorsement (Form T-33) is $20.00.
The premium for the Variable Rate Mortgage-Negative Amortization Endorsement (Form T-33.1) is: $20.00; or
$ 0.00 if an extra premium is charged for the Loan Policy since of an increased policy amount.
The premium for the Manufactured Housing Endorsement (Form T-31) is $20.00.
The premium for the Supplemental Coverage Manufactured Housing Unit Endorsement (Form T-31.1) is $50.00.
When issued at the time the policy is provided, the premium is 25.00.
When released after the date of the policy, the premium is $50.00.
The premium is $25.00.
However, when several Planned Unit Development Endorsements (Form T-17) are issued all at once on numerous Loan Policies covering the very same land, the premium for the very first endorsement is $25.00 and the premium for extra endorsements is $0.00.
Title Manual Main Index|Section III Index
R-12. Commitment for Title Insurance
Applicable only as offered in Rule P-18 - The Commitment for Title Insurance will bear no premium in addition to the premium chargeable for the policy or policies released pursuant thereto, other than that this Rule R-12 shall not use to any commitment for title insurance coverage issued pursuant to Rate Rule R-23, or Rate Rule R-25.
R-13. Mortgagee Title Policy Binder on Interim Construction Loan
1. Applicable only as offered in Rule P-16 - A premium charge of an amount equivalent to the minimum policy Basic Premium Rate shall be made for issuance of each Mortgagee Title Policy Binder on Interim Construction Loan. Such Binder shall be released for a regard to one year. The initial Binder may be extended for six (6) additional successive durations of 6 (6) months each, not to go beyond thirty-six (36) months. A premium of $25.00 will be charged for each consecutive 6 (6) month extension.
2. Upon subsequent issuance of: 1. a Mortgagee Policy on a loan to fully use up, renew, extend or please a lien already covered by a Mortgagee Title Policy on Interim Construction Loan, or.
2. an Owner's Policy on the sale of a residential or commercial property which is encumbered by a lien covered by a Mortgagee Title Policy Binder on Interim Construction Loan and which lien against the conveyed residential or commercial property is released prior to or simultaneous with the sale, the premium for the new policy will be at the basic rate, however a credit for the premium paid for the Binder will be enabled to the buyer of the Owner's Policy as follows: Fifty percent (50%) of the premium paid for the Binder (unique of extensions), if the subsequent policy is released within one (1) year from the date of the original Binder.
Where more than one Policy might be provided on a part of the residential or commercial property covered by the Binder, only one credit will be permitted, being on the very first Policy provided.
This Rule will not apply to any Binder provided prior to March 1, 1989, in which case no credit is allowed.
Notwithstanding the arrangement in Rate Rule R-1, it will be allowable to combine this guideline with Rate Rule R-5 in the estimation of the premium for a Policy. In no event shall the exceptional collected be less than the regular minimum promulgated rate for a Mortgagee Policy.
The fifty percent (50%) credit will not use if the Binder covers real residential or commercial property which is being improved for enhancements besides one to 4 property units.
Title Manual Main Index|Section III Index
R-14. Foreclosed Properties
When the owner of the residential or commercial property has actually acquired very same directly through foreclosure under a mortgage insured by a Mortgagee Policy, or the Secretary of Housing and Urban Development or the Administrator of Veteran's Affairs, or as their names may be changed from time to time, has gotten said residential or commercial property be factor of its guarantee or recommendation of a mortgage insured by a Mortgagee Policy, and is selling same, an Owner Policy may be provided on stated sale, or a Mortgagee Policy might be released on a lien being kept in the deed conveying said residential or commercial property. If just an Owner Policy is released, the charge therefore shall be at the Basic Rate on the total of the consideration of said sale. If only a Mortgagee policy is provided, the Basic Rate on the total of the lien will be charged. In either case, the credit of $15.00 on the whole deal shall be permitted. In case an Owner Policy and a Mortgagee Policy are issued all at once on a deal as provided in Rule R-5, the simultaneous concern rate, in addition to the credit allowed by this rule, will use. The $15.00 credit allowed by this guideline shall not use until the issuing Company is furnished the following:
1. At the time the policy or policies are purchased, the seller will send to the Company, for its examination and usage, such as is offered in the seller's files, including the Mortgagee Policy covering the lien foreclosed, revealing title vested in such seller. This title proof must be maintained in the files of the Company for future recommendation in the occasion a claim arises under the indemnity contract set forth in paragraph "b" hereof.