Bulletin: AR2008002

Dear Associates:

The new Title Insurance Act 684 of 2007, and associated rules 87 and 88, which went into effect January 1, 2008 (please refer to Stewart Bulletins AR2007001 and AR2008001); contain one very important aspect of the new law we would like to bring to your attention. Section 14 of Rule 87, which deals with insured closing letters, requires an insured closing letter to be offered to the lender and buyer on each and every transaction you close. There will be no more blanket insured closing letters.You may, if you choose, also offer this coverage to the seller.

If it is a cash transaction then you should offer this coverage to the buyer. If the buyer declines, we would recommend that you have something in writing in your escrow file where they sign off declining this coverage. There will be a $25.00 charge for each letter issued. You should show this charge on your HUD and collect it at closing. Please understand that the lender and buyer may be shown on the same letter. You will be billed on a monthly basis for each letter issued. As you will note, the full $25.00 must be remitted to the Company and cannot be split with the Agent.

You may access the Act and Rules at www.insurance.arkansas.gov, which is the Department of Insurance website; from there, go to the Legal Division and the information can be accessed through the Insurance Law Legal Division heading.

Please feel free to call Kim Majors at 1-800-530-8237 for any additional information you may require.

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