Bulletin: NL000094

RESIDENTIAL TRANSACTIONS

You do not need to check the buyer's name at time of purchase for any matters, such as federal or state judgments, federal or state tax liens, or bankruptcies, under the following circumstances:

You are issuing an owner's title insurance policy to that buyer or a loan policy covering a purchase money mortgage to the lender;

The land is one-to-four family residential property not exceeding 25 acres;

The purchase money mortgage from the buyer to the lender is executed at the same time as the deed to the buyer and is filed for record on the same day as the deed to the buyer; and

The financing is only for purchase money and normal closing costs.

If the financing includes a revolving line of credit or money advanced other than for purchase money and normal closing costs, you should check the buyer's name.

If the buyer later sells or mortgages the land for other purposes, you should do a full check for the applicable time of that party's name.

If you issue a Schedule B Part II to the loan policy (where available), you should check the buyer's name.

You should also determine whether your lender's closing instructions require name checks of the buyer, and you should comply with those instructions. If the lender's instructions prohibit junior liens of any type (not just junior financing), you should do a full check of the buyer's name.

COMMERCIAL TRANSACTIONS

On commercial property, it is customary to check the buyer's name at time of purchase for any matters such as federal or state judgments, federal or state tax liens, or bankruptcies on commercial land. Please call our underwriting personnel if you have any questions concerning this practice.