Bulletin: NC2011002

Dear Associates:

In response to an increase in survey, boundary and access claims STG is revising its coverage for survey matters in loan policies. We may continue to give survey coverage by Short Form Loan Policy, Expanded Coverage Loan Policy, Short Form Expanded Coverage Loan Policy, or other Loan policy with extended coverage (deletion of survey exception) and/or ALTA Endorsements 4-06, 5-06 or 9 series may be given without a survey if the property is:

1. an improved single family residential property, and
2. the insured land is a platted lot (not portion of one or more lots) with reference to a recorded plat book and page, and
3. the loan policy does not exceed $5 million.

The following exception should be used in owner and lender policies that do no meet the specifications for survey coverage:

"Encroachments, overlaps, boundary line disputes, or other matters which would be disclosed by an accurate survey or inspection of the premises."

Specifically, a survey will be required to give survey coverage in Lender policies in the following situations unless prior approval of underwriter is obtained:

1. Insured property is rural, commercial, or agricultural properties.
2. Any properties with metes and bounds description not further complemented by recorded lot and block designations.

Where a survey is required for lender survey coverage the following requirements must be met:

1. The survey must be less than one year old unless Stewart Underwriting Personnel has approved otherwise. If the survey is not new, a knowledgeable owner must sign an affidavit stating that no changes have occurred, including new fences or other improvements, or subsequent easements. If subsequent improvements have been added, a prior survey will not be acceptable without underwriter approval.

2. The survey must be prepared by a NC Professional Land Surveyor showing improvements, boundaries, corners, easements, and access. A boundary survey is not acceptable for improved land; an inspection survey is not acceptable.

Any prior bulletins relating to survey coverage are replaced by this bulletin.

If you have questions related to this bulletin, please contact your local underwriting personnel or Stewart Legal Services.

For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.