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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 asked for, subsequent to the issuance of an Owner Policy which excepted to the Vendor’s Lien, the premium shall be one-half the Basic Rate. The lien to be insured must be as initially created, and excepted to in the Owner Policy, and not an extension or rearrangement thereof. Such Mortgagee Policy( ies) will be released in the amount of the present unsettled balance of stated insolvency. The Company shall be furnished such evidence as it might need validating such unsettled balance, that the indebtedness is not in default which there has actually 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 allocated to individual systems in connection with a master policy covering the aggregate insolvency, including improvements. Individual Mortgagee Policies should be provided at the Basic Rates.

2. Subsequent to Mortgagee Policy – When a Mortgagee Policy( ies) is requested, for any reason whatsoever, on a lien currently covered by an existing Mortgagee Policy( ies), however not on a renewal or extension thereof, the new policy being in the quantity of the present unsettled balance of the insolvency, the premium for the new policy shall be at the Basic Rate, but a credit for three-tenths (3/10) of said premium may be enabled.
3. Subsequent to Mortgagee Policy – When an insolvent insurance company is placed in irreversible receivership by a court of skilled jurisdiction and a Mortgagee Policy( ies) is requested on a lien currently covered by an existing Mortgagee Policy( ies) of stated insolvent insurer, however not on a loan to take up, restore, extend or satisfy an existing lien, the new policy remaining in the quantity of the existing unsettled balance of the insolvency, the premium for the brand-new policy shall be at the standard rate, but a credit for half of stated premium will be allowed, unless such credit would lower the premium to less than the minimum Basic Rate, in which case the rate shall be the minimum Basic Rate. The insured shall give up the existing Mortgagee Policy( ies) to the Company when putting the order for a brand-new Mortgagee Policy( ies). The date of Policy for the new policy( ies) will 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 Very first Lien, and other policy( ies) is issued on Subordinate Lien( s), created in the very same deal, covering the exact same land or a part thereof, the premium for the First Lien policy shall be computed on the total of the combined liens; the premium for each Subordinate Lien policy shall be $5.00.

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

When a Loan Policy is issued on a loan that fully uses up, renews, extends, or pleases several existing liens that are already guaranteed by one or more existing Loan Policies, the new Loan Policy must remain in the quantity of the note of the brand-new loan. The premium for the brand-new Loan Policy is decreased by a credit. The credit is calculated as follows:

1. Calculate the Basic Premium on the composed benefit balance of the existing loan or the original amount of that loan, whichever is less; and
2. Multiply by the portion 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; however 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 brand-new Loan Policy.

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

When two or more new Loan Policies are provided on multiple 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 must be used to the premium for the biggest Loan Policy. A credit needs to be provided even if not all of the new loans are guaranteed or if only among 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 allocated to private systems in connection with a master policy covering the aggregate insolvency, including improvements. Except as otherwise supplied in this rule, private Loan Policies need to be released at the Basic Rate.

R-9. Additional Chains of Title

In the event more than one chain of title is involved in the issuance (consisting of determination of insurability of gain access to) of any policy, the Company shall charge the minimum policy Basic Premium Rate for each extra chain. For purpose of using this rule, contiguous parcels in one county will 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 different chain will be treated as a different chain, other than where two or more lots in the very same platted neighborhood, and having the exact same plat recording date, come from the very same owner, then such will be dealt with as one chain. If the parcels of land lie in more than one county, there are separate chains of title in each county. No extra chain charge may be produced determination of insurability of access to land located within a subdivision, supplied: (i) the neighborhood lies in only one county, and (ii) the plat of the neighborhood has been lawfully approved by an authorized governmental entity, is duly tape-recorded, and the roadways shown thereon have been dedicated for public usage or for the use of the owners of lots found 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 just as provided in Procedural Rule P-9.

Assignment of Mortgage Endorsement (Form T-3, Endorsement Instruction III): If released within twelve months after the date of the policy, the premium is the minimum Basic Premium Rate.
If released 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 period.
However, the optimal premium collected need to not be more than 50% of the premium for the loan policy quantity based upon the current 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 provided more than twelve months after the date of the policy, the premium is the minimum Basic Premium Rate plus $25.00 for each extra 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 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 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 extra premium is charged for the Loan Policy due to the fact that 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 provided at the time the policy is provided, 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 several Planned Unit Development Endorsements (Form T-17) are released all at once on several Loan Policies covering the exact same land, the premium for the first recommendation is $25.00 and the premium for extra endorsements is $0.00.
Title Manual Main Index|Section III Index

R-12. Commitment for Title Insurance

Applicable only as supplied in Rule P-18 – The Commitment for Title Insurance shall bear no premium in addition to the premium chargeable for the policy or policies provided pursuant thereto, other than that this Rule R-12 shall not apply to any dedication for title insurance coverage released 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 provided in Rule P-16 – A premium charge of an amount equivalent to the minimum policy Basic Premium Rate will be produced issuance of each Mortgagee Title Policy Binder on Interim Construction Loan. Such Binder will be issued for a term of one year. The original Binder may be extended for 6 (6) additional consecutive durations of six (6) months each, not to surpass 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 completely take up, renew, extend or please a lien currently 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 encumbered by a lien covered by a Mortgagee Title Policy Binder on Interim Construction Loan and which lien versus the conveyed 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, however a credit for the premium paid for the Binder shall be permitted to the buyer of the Owner’s Policy as follows: Fifty percent (50%) of the premium spent for the Binder (exclusive of extensions), if the subsequent policy is issued within one (1) year from the date of the original Binder.

Where more than one Policy may be released on a part of the residential or commercial property covered by the Binder, only one credit shall be permitted, being on the first Policy released.

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

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

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

Title Manual Main Index|Section III Index

R-14. Foreclosed Properties

When the owner of the residential or commercial property has obtained very same directly through foreclosure under a mortgage insured 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 acquired stated residential or commercial property be reason of its guarantee or endorsement of a mortgage guaranteed by a Mortgagee Policy, and is selling same, an Owner Policy might be issued on stated sale, or a Mortgagee Policy may be provided on a lien being kept in the deed conveying said residential or commercial property. If just an Owner Policy is released, the charge therefore will be at the Basic Rate on the complete amount of the consideration of said sale. If only a Mortgagee policy is issued, the Basic Rate on the complete amount of the lien will be charged. In either case, the credit of $15.00 on the whole transaction will be allowed. In the occasion an Owner Policy and a Mortgagee Policy are released at the same time on a deal as supplied in Rule R-5, the synchronised problem rate, as well as the credit enabled by this rule, shall apply. The $15.00 credit permitted by this guideline will not use up until the releasing Company is provided the following:

1. At the time the policy or policies are ordered, the seller will transmit to the Company, for its examination and use, such proof as is readily available in the seller’s files, consisting of the Mortgagee Policy covering the lien foreclosed, showing title vested in such seller. This title proof must be maintained in the files of the Company for future referral in the occasion a claim develops under the indemnity agreement set forth in paragraph “b” hereof.