Bulletin: NY000118

Dear Associates:

From time to time, this office receives correspondence from attorneys representing homeowner associations, water pumping plants or sewer treatment facilities, who have in the past, routinely sent out letters, "shotgun style", to title insurers, notifying them of a potential lien in favor of such Associations or Treatment Plants for unpaid assessments.

Although we do not condone this type of practice, we do want to make sure that all offices and agents are aware of the lien potential on properties serviced by such entities when it comes to our attention.

Pursuant to the letter, the attorney says that Krissa Corp. has taken an assignment of the right to collect all outstanding pumping station charges due to the STP, which processes sewage from homes in a portion of Richmond County bounded by Arden Avenue, Arthur Kill Road, and the West Shore Expressway. If you would like a copy of the letter from the attorney who says he represents Krissa Corp., the owner of the Village Green Sewage Treatment Plant ("STP"), in Richmond County, New York, please contact our New York City office. The entities or developments serviced by STP are:

Huguenot Hill Homeowners Association, Elmwood at Huguenot Hills, Avon at Huguenot, Island Condo and Dome Property Management.

The assessments were imposed pursuant to various Declarations of Covenants affecting these homes and which the attorney claims, are enforceable liens superior to the lien of any mortgage.

If you have a title application on property that is serviced by STP, it is suggested that you except the terms, covenants, conditions and provisions contained in the "Declarations" affecting the premises, note that there is a provision in the Declaration which says that unpaid assessments will be a lien against the property, and require proof that all assessments have been paid to the date of closing. A letter from STP setting forth the amount due (which should be collected and paid at closing) or stating that all assessments have been paid to date of closing, should be obtained and delivered to the Title Agent or Company.

Should you have any questions, please contact the undersigned.