Bulletin: MU000024

Dear Associates:

Sometimes the language of escrow instructions we receive (or title instructions) is too broad, too undefined, too unrelated to our escrow or title functions so that we will have to decline to agree to the language as it appears in the escrow or title instructions.

For example: If you receive language in escrow instructions like the language which follows, do not agree to comply with the duties imposed by the language. See underwriting personnel for guidance. Here's and example of language too broad in meaning - under ordinary circumstances:

"4. Please also help us verify that the [buyer] will be receiving good and marketable title. If you know of liens, encumbrances, clouds, assessments, restrictions, coventnats or conditions, whether of record or not, which are enforceable against the property and which the Title Company does not intend to mention as exceptions to coverage under the final policy of title insurance, you must notify us so we can make an independent judgment of whether title to the property is marketable."

The difficulty with this instruction is understanding the meaning of simple works like (1) "verify": (2) "good" (3) "If you know of..." (4) "clouds" (5) "enforceable" etc.
If you have doubts about the meaning of the language in escrow instructions or tile instructions and/or what inferences might conceivably be drawn from the language in either, telephone our underwriting personnel.