Bulletin: GA2025001

Dear Associates:

The State Bar of Georgia has adopted Title Standards which define a complete title exam to confirm marketable title to be 50 years or more. The Marketable Title Act has a 40-year search requirement. It is local custom and practice to follow the Title Standards 50-year search requirement.

Stewart Title Guaranty Company over the years has released various bulletins that allow shorter search periods depending on the type of property and type of policy being issued. Recently we have had questions concerning the scope of the search required in Georgia. This bulletin is intended to summarize and modify our search requirements in Georgia for various properties and policies.

I. For commercial properties, all searches should be 50 years or more (i.e., deed in chain of title must be traced back to 50 years or older) consistent with the Title Standards in Georgia, unless:

(A) You have a starter policy that contains specific Schedule B title exceptions, even if the starter policy was issued by another title insurance company. However, if the starter policy is a loan title policy the exam must go back one year behind that policy if an owner’s title policy will be issued in the new transaction, or

(B) You may use a prior commitment for title insurance from a prior transaction that actually closed and is otherwise approved by our underwriters, with specific title exceptions to begin your search, even if the prior commitment was issued by another title insurance company. However, you should go back one year behind the commitment date when a commitment is used as a starter. You should not assume that the requirements of the commitment were satisfied without additional sufficient evidence.

II. For residential properties, all searches should be 50 years or more (i.e., deed in chain of title must be traced back to 50 years or older) consistent with the Title Standards in Georgia, unless:

(A) You have a starter policy that contains specific Schedule B title exceptions, even if the starter policy was issued by another title insurance company. However, if the starter policy is a lender’s title policy the exam must go back one year behind that policy if an owner’s title policy will be issued in the new transaction, or

(B) You may use a prior commitment for title insurance from a prior transaction that actually closed and is otherwise approved by our underwriters, with specific title exceptions to begin your search, even if the prior commitment was issued by another title insurance company. However, you should go back one year behind the commitment date when a commitment is used as a starter. You should not assume that the requirements of the commitment were satisfied without additional sufficient evidence, or

(C) For property located in a residential subdivision you may search from the date the property was acquired by the developer provided the transaction you are insuring is not the first lot conveyed in the subdivision, but in no event shall the search period be less than 7 years absent underwriter approval. In the event the search period is shortened by this method, you must either:

i. Locate a policy for another piece of property that was acquired by the developer in the same deed as the subject property in the subdivision that includes specific Schedule B exceptions and include any exceptions listed in that policy that predates the deed into developer, or
ii. Include as an exception in the policy (other than short form lender’s title policy which includes a similar exception in the jacket): Covenants, conditions, restrictions, easements and/or servitudes of record.

(D) You may use a homeowner’s policy that does not include specific exceptions of record as a starter provided:

i. You are issuing a homeowner’s policy that includes in Schedule B an exception for covenants, conditions, restrictions, easements and/or servitudes of record, or
ii. You are issuing a short form loan policy, or
iii. You are issuing a long form owner’s policy or loan policy that includes in Schedule B an exception for covenants, conditions, restrictions, easements and/or servitudes of record.

(E) As to short form residential loan policy only:

i. One bona fide purchaser (for purposes of this bulletin defined as an arm’s length sale between unrelated parties) provided grantee in that deed gave a purchase money mortgage to an institutional lender, or
ii. Search back two bona fide purchasers, or
iii. Update from a short form residential policy or other policy that does not contain specific Schedule B exceptions.

When the search period is shortened by any of the above methods, lien indexes should be checked just as if a full search was conducted in regards to the names that show up on the shortened title exam period, i.e., 7 years judgments, 10 years federal tax liens and liens in favor of Georgia Department of Revenue and 20 years for judgments in favor of the U.S. Additionally, property taxes and other government charges must be checked in the same manner as if a full search had been conducted in regard to names that show up on the limited search period.

You may not use as a starter:

I. A short form policy or a short form commitment that does not contain specific Schedule B exceptions for an owner’s or loan policy that will have specific title exceptions, or
II. Limited coverage/home equity/junior loan/foreclosure policy or guarantee as a starter, or
III. A policy that insures a leasehold estate as a starter for a policy in which fee estate is to be insured.

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

For online viewing of this and other bulletins, please log onto www.vuwriter.com.