Bulletin: NL000039

Dear Associates:

Easements: We have had a number of losses on commercial and apartment tracts where easements for sanitary and storm sewers, easements for water lines, and easements for utility lines have not been excepted in our policy (some of these are recorded and missed and some are unrecorded). These are particularly dangerous on commercial and apartment tracts. We have some protection on residential properties because these are usually shown on the recorded plat when the subdivision is laid out.

In connection with all commercial and apartment sites, whether in the downtown or outlying areas (you can usually recognize the commercial and apartment sites because they usually sell for a higher amount per square foot than residential), please call the city hall and the utility companies to see if they have any easement lines in the property which you are planning to insure. (Some cities do not have this information.)

In some other cities, we find that the city maintains a map of all easements (many of which are not of record) and we have a copy made of these maps and keep them in the office. This solution may be helpful to you.

The manager (or someone he delegates) should personally okay the title report on commercial and apartment sites.

Restrictions: If there are no restrictions against commercial use and we are insuring in effect that the property can be used for commercial purposes, the manager (or someone he delegates) should personally okay this.

This procedure will save you many unhappy customers, a great deal of time, and money.