Bulletin: CA000021

Dear Associates:

It has recently come to our attention that another title company suffered a loss on the limited coverage policy wherein the last deed of record which they reflected did not disclose that the party named did not own 100% of the fee title. The limited coverage policy was issued insuring the validity and enforceability of the lender's lien. Apparently, the last record deed only gave to the named grantee a 50% interest and therefore the coverage under the policy was suspect as to their remaining 50% interest. Please advise the title officers issuing the limited coverage policies that they must check the tax rolls for the last assessed owner against the last deed of record to satisfy themselves that the last deed of record vests 100% of the interest. If they are uncertain that the last deed of record grants the named grantee therein the 100% interest, either a full ALTA loan policy should be written which, of course, will be supported by a complete search of the chain of title or further investigation be made before issuing the limited coverage policy. If you have any questions, please consult your underwriter.