Source: http://www.titleinsurancenj.com/pages/re-info-for-attorneys.aspx?vtype=2&article=317
Timestamp: 2018-07-20 06:19:17
Document Index: 743327352

Matched Legal Cases: ['§3', '§3', '§10', '§10', '§10', '§10', '§3', '§10', '§3']

Rating Bureau Activity: Rate Manual Revised
The New Jersey Land Title Insurance Rating Bureau [“NJLTIRB”] has received approval from the Dept of Banking and Insurance [“NJ DOBI”] for changes to the Rate Manual, effective October 1, 2014. These include revisions to the wording of four existing sections, and the addition of three new sections, as discussed below.
Existing Sections Revised.
§3.1.1 (“Policy Issued at Time of Acquisition of Property”). This section is revised to clarify that when property is acquired for nominal consideration, the amount of insurance is based on the fair market value of the property.
§3.1.3(a) (“Conversion of Estate Insured”). This section is revised to clarify that where an insured lender acquires title to the mortgaged property and desires to obtain an owner’s policy, the amount of insurance is based on the fair market value of the property.
§10.73 (ALTA 33-06) (“Disbursement”). This section is revised to conform to the previously revised wording of the endorsement. The endorsement is issued in connection with title continuation searchers for construction advances.
§10.91 (ALTA 12.1-06) (“Aggregation – State Limits – Loan”). This section is revised to clarify that it refers only to land located within New Jersey.
New Sections Added.
New §10.94 discusses ALTA End’t No. 43-06 (Anti-Taint) (NJRB 5-161), which insures a lender against loss of priority in cases where a mortgage secures a debt comprised of two portions: a term loan and a revolving credit loan.
New §10.95 discusses the N.J. Contract Vendee’s End’t (NJRB 5-162), which insures a contract vendee against loss in the event it is unable to obtain a fee simple title upon compli- ance with the terms of the contract. With respect to issuance of an owner’s policy to a contract vendee after acquisition of title, see Rate Manual §3.1.3(b) (“Conversion of Estate Insured”).
New §10.96 discusses the N.J. Option End’t (NJRB 5-163) which insures an optionee against loss in the event it is unable to obtain a fee simple title upon compliance with the terms of the option. With respect to issuance of an owner’s policy to an optionee after acquisition of title, see Rate Manual §3.1.3(b) (“Conversion of Estate Insured”).
The charge for issuance of each of the endorsements discussed above is a sum equivalent to 10% of the cost of the policy. For a discussion of other NJLTIRB activity effective Oct. 1, 2014, see Title Talk No. 89 (Summer 2014).
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