Bulletin: NJ2022004

Dear Associates:

The Somerset County Clerk’s office experienced a ransomware attack on May 24, 2022, that has resulted in all computer systems being shut down. As a result, all Land Records after 1977 are not accessible to be searched. In addition, all recording of land documents is also shut down. The County Surrogates Office is similarly affected. The County is working diligently to resolve this issue but does not have an estimated resolution date. The New Jersey office of Stewart Title Guaranty Company sent out an email on May 25, 2022, alerting our agents and providing instructions stating that all closings in Somerset County were to be suspended until further notice. This bulletin replaces NJ2022003.

As of the date of this bulletin, the Land Records still cannot be searched. The County’s IT department is working on getting access to the searchers in the next few days.

As of Monday June 6, 2022, the County has resumed e-recording only. Everything has been kept in chronological order since the shut down and they are working on the oldest instruments first in order to get them recorded.

Also, as of June 8, 2022, the County has started working on the instruments that have been delivered to the County Clerk’s Office (either via USPS / FedEx / UPS or walk in.) Those documents have also been saved in chronological order and the clerk’s office is working to record those as well.

However, for transactions where a commitment was already issued prior to May 20, 2022, with a satisfactory title search, agents may close under the following circumstances:

1. The policy will not exceed $3 million;

2. You secure Stewart’s customary title affidavit or a similar affidavit from the current owner;

3. In addition to the customary title affidavit, You must also secure Stewart’s GAP Indemnity Agreement (signed by both Buyer and Seller). The GAP Indemnity agreement can be found on Virtual Underwriter and can be accessed by clicking here.

4. The title examination does not show that the seller, purchaser or borrower is subject to any outstanding involuntary or statutory liens (such as judgment liens, tax liens, or mechanic's liens) or lawsuits;

5. The insured mortgage is not a construction mortgage and there has been no recent construction; and

6. You determine that the closing instructions of the proposed insured lender and purchaser provide, or as clarified, acknowledge that recording and the return of the original deed and mortgage will be delayed until the county or other recording office is open.

7. You have the ability to e-record in the County using an e-recording software. The e-recording software must acknowledge receipt of the documents at the County with a time stamp.

We will continue to monitor the situation and provide updates accordingly. If you have any questions, including those about transactions that have recently closed or were scheduled to close soon, please call or email one of our Underwriting Counsels to discuss.

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

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