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Basic Manual Of Title Insurance, Section III

Effective November 1, 2024 (Order 2024-8851)

R-6. Subsequent Issuance of Mortgagee Policy

1. Subsequent to Owner Policy – When a Mortgagee Policy( ies) is requested, subsequent to the issuance of an Owner Policy which excepted to the Vendor’s Lien, the premium will be one-half the Basic Rate. The lien to be insured should be as initially developed, and excepted to in the Owner Policy, and not an extension or rearrangement thereof. Such Mortgagee Policy( ies) shall be issued in the quantity of the current unpaid balance of said indebtedness. The Company shall be provided such proof as it may need validating such overdue balance, that the insolvency is not in default which there has been no velocity of maturity. THIS RULE MAY NOT BE APPLIED in connection with the issuance of a series of Mortgagee Policies issued by factor of notes being assigned to specific units in connection with a master policy covering the aggregate indebtedness, including improvements. Individual Mortgagee Policies must be provided at the Basic Rates.

2. Subsequent to Mortgagee Policy – When a Mortgagee Policy( ies) is requested, for any factor whatsoever, on a lien currently covered by an existing Mortgagee Policy( ies), but not on a renewal or extension thereof, the brand-new policy remaining in the amount of the present overdue balance of the indebtedness, the premium for the brand-new policy shall be at the Basic Rate, however a credit for three-tenths (3/10) of said premium may be permitted.
3. Subsequent to Mortgagee Policy – When an insolvent insurance provider is positioned in long-term receivership by a court of competent jurisdiction and a Mortgagee Policy( ies) is asked for on a lien currently covered by an existing Mortgagee Policy( ies) of said insolvent insurance company, but not on a loan to take up, renew, extend or satisfy an existing lien, the brand-new policy remaining in the amount of the current unsettled balance of the insolvency, the premium for the brand-new policy shall be at the fundamental rate, however a credit for one-half of said premium will be allowed, unless such credit would reduce the premium to less than the minimum Basic Rate, in which case the rate will be the minimum Basic Rate. The insured will surrender the existing Mortgagee Policy( ies) to the Company when placing the order for a brand-new Mortgagee Policy( ies). The date of Policy for the brand-new policy( ies) shall be the very same Date of Policy as the existing Mortgagee Policy( ies).

R-7. Mortgagee Policies Covering First and Subordinate Liens Issued Simultaneously

When a Mortgagee Policy is provided on a First Lien, and other policy( ies) is provided on Subordinate Lien( s), produced in the same deal, covering the exact same land or a portion thereof, the premium for the First Lien policy shall be calculated on the total of the combined liens; the premium for each Subordinate Lien policy will be $5.00.

R-8. Loan Policy on a Loan to Take Up, Renew, Extend or Satisfy an Existing Lien( s)

When a Loan Policy is released on a loan that completely uses up, restores, extends, or pleases several existing liens that are already guaranteed by one or more existing Loan Policies, the Policy must be in the quantity of the note of the new loan. The premium for the new Loan Policy is decreased by a credit. The credit is determined as follows:

1. Calculate the Basic Premium on the composed reward balance of the existing loan or the initial amount of that loan, whichever is less; and
2. Multiply by the percentage listed below for the time from the existing Loan Policy date to the new Loan Policy date: 1. 50% when 4 years or less;
2. 25% when more than 4 years however less than eight years; or

The premium for the new Loan Policy is the Basic Premium less the credit; but not less than the minimum Basic Premium.

The credit does not use if any residential or commercial property not covered in the existing Loan Policy( ies) is included in the new Loan Policy.

When the existing Loan Policy( ies) consisted of more than one chain of title, and the brand-new Loan Policy also includes several of the initial chains of title, the minimum Basic Premium must be charged for each additional chain of title. (See Rate Rule R-9 for the meaning of „extra chain.“)

When 2 or more new Loan Policies are released on numerous loans to completely take up, renew, extend, or please an existing lien insured by a single Loan Policy, the premium for each brand-new Loan Policy, is the Basic Premium. The credit computed above need to be used to the premium for the biggest Loan Policy. A credit should be given even if not all of the brand-new loans are insured or if just one of the brand-new loans is guaranteed.

THIS RULE MAY NOT BE APPLIED in connection with the issuance of a series of Loan Policies issued by factor of notes being apportioned to individual systems in connection with a master policy covering the aggregate insolvency, consisting of enhancements. Except as otherwise offered in this guideline, private Loan Policies should be released at the Basic Rate.

R-9. Additional Chains of Title

In case more than one chain of title is included in the issuance (including determination of insurability of gain access to) of any policy, the Company will charge the minimum policy Basic Premium Rate for each extra chain. For purpose of using this guideline, adjoining parcels of land in one county shall be treated as one chain, provided record title to the land and record title to the access is vested in one owner at the time application is made. Each noncontiguous parcel having a separate chain will be dealt with as a different chain, except where two or more lots in the exact same platted subdivision, and having the very same plat recording date, come from the very same owner, then such will be treated as one chain. If the parcels of land lie in more than one county, there are different chains of title in each county. No additional chain charge may be produced decision of insurability of access to land located within a neighborhood, provided: (i) the subdivision lies in just one county, and (ii) the plat of the subdivision has been lawfully approved by an authorized governmental entity, is properly tape-recorded, and the roadways shown thereon have actually been committed for public usage or for making use of the owners of lots located in the subdivision.

R-10. Owner’s Policies – City Subdivision, Acreage Subdivisions, Industrial Tracts

Rate Rule R-10 is rescinded, efficient September 1, 2013, due to obsolescence.

Effective January 3, 2014 (Order 2806)

R-11. Loan Policy Endorsements

Applicable only as supplied in Procedural Rule P-9.

Assignment of Mortgage Endorsement (Form T-3, Endorsement Instruction III): If issued within twelve months after the date of the policy, the premium is the minimum Basic Premium Rate.
If provided more than twelve months after the date of the policy, the premium is the minimum Basic Premium Rate plus $100.00 for each additional complete or partial twelve-month duration.
However, the maximum premium collected must not be more than 50% of the premium for the loan policy amount based on the present Schedule of Basic Premium Rates
If released within twelve months after the date of the policy, the premium is the minimum Basic Premium Rate.
If issued more than twelve months after the date of the policy, the premium is the minimum Basic Premium Rate plus $25.00 for each extra full or partial twelve-month period.
However, the optimal premium collected must not be more than 50% of the premium for the loan policy amount based upon the current Schedule of Basic Premium Rates.
If the land in the policy is Residential Real Residential or commercial property, the premium is $50.00.
If the land in the policy is not Residential Real Residential or commercial property, the premium is $100.00.
The premium for the Variable Rate Mortgage Endorsement (Form T-33) is $20.00.
The premium for the Variable Rate Mortgage-Negative Amortization Endorsement (Form T-33.1) is: $20.00; or
$ 0.00 if an additional premium is charged for the Loan Policy since of an increased policy quantity.
The premium for the Manufactured Housing Endorsement (Form T-31) is $20.00.
The premium for the Supplemental Coverage Manufactured Housing Unit Endorsement (Form T-31.1) is $50.00.
When issued at the time the policy is issued, the premium is 25.00.
When issued after the date of the policy, the premium is $50.00.
The premium is $25.00.
However, when multiple Planned Unit Development Endorsements (Form T-17) are provided all at once on numerous Loan Policies covering the very same land, the premium for the first recommendation is $25.00 and the premium for additional endorsements is $0.00.
Title Manual Main Index|Section III Index

R-12. Commitment for Title Insurance

Applicable only as provided in Rule P-18 – The Commitment for Title Insurance shall bear no premium in addition to the premium chargeable for the policy or policies released pursuant thereto, except that this Rule R-12 will not use to any dedication for title insurance issued pursuant to Rate Rule R-23, or Rate Rule R-25.

R-13. Mortgagee Title Policy Binder on Interim Construction Loan

1. Applicable just as offered in Rule P-16 – A premium charge of a quantity equivalent to the minimum policy Basic Premium Rate shall be made for issuance of each Mortgagee Title Policy Binder on Interim Construction Loan. Such Binder will be issued for a regard to one year. The original Binder may be extended for 6 (6) additional consecutive durations of six (6) months each, not to go beyond thirty-six (36) months. A premium of $25.00 shall be charged for each successive six (6) month extension.
2. Upon subsequent issuance of: 1. a Mortgagee Policy on a loan to totally take up, restore, extend or please a lien already covered by a Mortgagee Title Policy on Interim Construction Loan, or.
2. an Owner’s Policy on the sale of a residential or commercial property which is overloaded by a lien covered by a Mortgagee Title Policy Binder on Interim Construction Loan and which lien against the communicated residential or commercial property is launched prior to or simultaneous with the sale, the premium for the new policy will be at the standard rate, but a credit for the premium spent for the Binder shall be enabled to the buyer of the Owner’s Policy as follows: Fifty percent (50%) of the premium spent for the Binder (special of extensions), if the subsequent policy is released within one (1) year from the date of the initial Binder.

Where more than one Policy might be released on a part of the residential or commercial property covered by the Binder, just one credit will be enabled, being on the first Policy released.

This Rule shall not use to any Binder released prior to March 1, 1989, in which case no credit is permitted.

Notwithstanding the provision in Rate Rule R-1, it will be permissible to integrate this guideline with Rate Rule R-5 in the calculation of the premium for a Policy. In no event shall the superior collected be less than the regular minimum promulgated rate for a Mortgagee Policy.

The fifty percent (50%) credit shall not use if the Binder covers genuine residential or commercial property which is being improved for improvements other than one to 4 residential systems.

Title Manual Main Index|Section III Index

R-14. Foreclosed Properties

When the owner of the residential or commercial property has actually gotten exact same straight through foreclosure under a mortgage guaranteed by a Mortgagee Policy, or the Secretary of Housing and Urban Development or the Administrator of Veteran’s Affairs, or as their names might be altered from time to time, has actually obtained said residential or commercial property be reason of its warranty or endorsement of a mortgage insured by a Mortgagee Policy, and is offering exact same, an Owner Policy might be provided on said sale, or a Mortgagee Policy might be provided on a lien being maintained in the deed communicating said residential or commercial property. If just an Owner Policy is provided, the charge therefore shall be at the Basic Rate on the full quantity of the factor to consider of stated sale. If only a Mortgagee policy is issued, the Basic Rate on the total of the lien shall be charged. In either case, the credit of $15.00 on the whole transaction will be permitted. In the occasion an Owner Policy and a Mortgagee Policy are released all at once on a transaction as provided in Rule R-5, the synchronised concern rate, in addition to the credit enabled by this guideline, will apply. The $15.00 credit allowed by this rule will not use until the releasing Company is furnished the following:

1. At the time the policy or policies are bought, the seller will transmit to the Company, for its evaluation and usage, such evidence as is available in the seller’s files, including the Mortgagee Policy covering the lien foreclosed, showing title vested in such seller. This title proof should be kept in the files of the Company for future referral in the occasion a claim emerges under the indemnity agreement set forth in paragraph „b“ hereof.