SC Disclosure Form 1

STEWART TITLE GUARANTY COMPANY

DISCLOSURE FORM NOTICE OF AVAILABILITY OF OWNER'S COVERAGE

Notice is hereby given that your mortgage lender is requiring issuance of a Mortgagee Title Insurance Policy, as described on the following page, which policy WILL NOT provide title insurance protection to you in the event of a defect in the title to the real estate that you are acquiring, including, but not limited to forgeries, missing heirs, unpaid taxes, etc..

In accordance with the requirements of Regulation 69-18, Code of Laws of South Carolina, 1976, you are hereby notified of your RIGHT AND OPPORTUNITY to obtain simultaneously with said Mortgagee Policy, an Owner's Title Insurance Policy that provides insurance to you as to the status of your title, for the amount of the total purchase price, together with the cost of any improvements that you may anticipate making. Such Owner's Policy will be issued in the amount of the total purchase price if you so desire for the ADDITIONAL premium as stated on the following page.

If you request owner's coverage, it will be issued upon payment of the premium and satisfaction of any requirements contained in the commitment issued to you and/or your lender. Your Owner's Policy will contain certain standard exceptions and exclusions from coverage. The policy will also except certain matters revealed in a search of the public records, including your mortgage(s).

AUDIT INFORMATION

Stewart Title Guaranty Company will issue a policy of title insurance through its agent in regards to your real estate transaction. Said policy and other documents issued may create certain risks to Stewart as to matters of title and with respect to the disbursement of the closing proceeds. Periodically, Stewart Title Guaranty Company will perform an audit to determine whether the agent is following Stewart's policies and procedures. As a part of the audit procedure, Stewart will select at random several files and trust account records. All audit information is retained by Stewart in strict confidence. By executing this Disclosure Form, you are consenting to an audit by Stewart of all records related to your real estate transaction.

Please complete and sign this Disclosure Form on the following page.

TITLE INSURANCE FINANCIAL INTEREST DISCLOSURE

Pursuant to Section 38-75-960(A) of the Code of South Carolina and the Real Estate Settlement Procedures Act (RESPA), _______________________________________, a producer of title insurance business, or associate of such producer, hereby advises that it has a financial interest in ______________________________, a title insurance agent or agency for STEWART TITLE GUARANTY COMPANY.

ACKNOWLEDGMENT

The undersigned is a purchaser or mortgagor who has been referred by the above-named producer of title business or associate of such producer to the above-named title agent. The undersigned acknowledges the financial interest of such producer as stated herein and further acknowledges that:

1.I hereby consent to an audit by Stewart Title Guaranty Company of the records related to this transaction as explained on the reverse side hereof.

2.I have read the disclosure on the reverse side hereof and I understand that a Mortgagee title insurance policy is required by my lender and that the mortgagee policy does not provide title insurance coverage for my separate ownership interest.

3.I have been given the opportunity to purchase an Owner's title insurance policy with the title insurance company of my choice to protect my separate ownership interest.

4.I understand that upon the issuance of a policy of title insurance, a commission of _____ per cent of the premium will be paid to or retained by the above-named title agent for services related to the issuance of the policy.

5.The Mortgagee policy insuring my lender will be in the face amount of $____________ with a premium in the amount of $_____________.

6.(CHECK ONE)

a. _____ I would like to obtain an Owner's policy of title insurance for the total purchase price for an additional premium in the amount of $___________.

b. _____ I do not want to obtain an Owner's policy.

DATE: _____________________

Borrower/Purchaser

Borrower/Purchaser