Bulletin: CA2019004

Dear Associates:

In connection with a request for the issuance of title insurance, the use of an Owner’s Affidavit is encouraged to obtain information that would not otherwise be available about the owners and about the title to the property. An Owner’s Affidavit is also helpful in confirming information that is in question. Many different forms of Owner’s Affidavits are available - some good, some not so good; Stewart Title Guaranty Company (STG) has updated its Owner’s Affidavit form and the new form is entitled Owner’s Affidavit and Indemnity (See attached). This Owner’s Affidavit and Indemnity (Affidavit) is the form approved by STG for use by its issuing agents in the State of California.

The Affidavit addresses a number of topics, some traditional affidavit topics, and some newer items developed from recent claim and loss experiences. These topics include, but are not limited to, construction-related topics, mechanic's liens, improvements, PACE/HERO programs, possession matters, property rights like mineral or water rights, endorsements related to encroachments, utility liens, HOA liens and CC&R violations, and Affiant’s knowledge of actual or potential liens, assessments, claims and litigation.

The Affidavit contains an indemnity provision. STG will rely upon the information in the Affidavit for its issuance of title insurance and the Affidavit will assist STG in defending against claims, or pursuing claims on behalf of, the insured.

STG recommends securing a completed Owner's Affidavit and Indemnity on every purchase transaction. The attached Affidavit form is the only form that should be used; it replaces any prior Owner’s Affidavits. Any changes to this form require prior written approval from an STG California Underwriter. 

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

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