Bulletin: SLS2020005

Dear Associates:

The closure of a recording office due to the Coronavirus Pandemic may affect the ability to perform searches and/or record the recordable transaction documents. 

In our prior Bulletin SLS2020002, we required the following to be included in all commitments and preliminary reports issued on and after March 16, 2020:

The Company reserves the right to raise exceptions and requirements or determine that it will not issue a title policy based upon the details of the transaction, the review of the closing documents, and changes in recording and title searching capabilities resulting from the COVID-19 virus. 

The above language was designed to account for the possibility that a recording office might close between the date of issuance of the commitment or preliminary report and the closing. The above language was required to be added only to commitments and preliminary reports  It was not intended to appear on any title insurance policy or to diminish or affect the coverage under any policy.  

Please note the following, as of today:

1. You are not required to insert the above language in commitments or preliminary reports. 

2. If you are able to close because the Requirements and our Guidelines have been satisfied, please require the following:

A. Coronavirus Acknowledgment. Attached is a document acknowledging the potential delay in recording due to recording office closures. Please have this signed by all insureds at or prior to closing, in all situations where you may not be able to record the recordable documents, i.e., where eRecording is unavailable and the recording office is closed or may close. It doesn’t need to be acknowledged. You may accept an emailed version of the text in an email from a representative of an Institutional Lender. Please deliver a copy to the new owner/buyer, lender and seller, if any.

B. Gap Indemnity Agreement. Please also obtain a Gap Indemnity from the seller in a sale transaction and the borrower in a refinance transaction.

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

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