REQUIREMENTS
(DATED: March 31, 2011)
TABLE OF CONTENTS
ACCESS...... 5
AFFIDAVITS...... 5
AFFIRMATIVE COVERAGE LIMITATION...... 6
ARCHITECTURAL CONTROL...... 6
ASSIGNMENT OF RENTS AND LEASES/RELEASE...... 6
ASSOCIATION LIENS...... 6
SCHEDULE B, PART II, EXCEPTIONS...... 7
BANKRUPTCY...... 7
BUSINESS TRUST...... 8
CHURCHES...... 8
CONDOMINIUMS...... 10
CONSIDERATION (LACK OF)...... 10
CORPORATIONS AND CORPORATE STATUS...... 10
AMENDMENTS...... 10
MERGERS...... 11
ALIEN CORPORATION...... 11
FOREIGN (NON-DOMESTIC OUT OF STATE) CORPORATION...... 11
NON-PROFIT CORPORATION...... 11
GENERAL...... 12
DEATH CERTIFICATES...... 12
DEEDS...... 12
DEED-PERSONAL REPRESENTATIVES...... 12
DEED RECITALS-BEACH FRONT MANAGEMENT ACT...... 13
DEED RECITALS-DEEDS IN LIEU...... 13
DEED IN LIEU...... 13
DEED DELIVERY...... 13
DEED-GENERAL PARTNERSHIPS...... 13
DEED-LIMITED PARTNERSHIPS...... 14
DEED-FOREIGN LIMITED PARTNERSHIPS...... 14
DEED-LIMITED LIABILITY PARTNERSHIPS...... 15
DEED-LIMITED LIABILITY COMPANY...... 16
DEED-TRUSTEE...... 16
OUTSTANDING INTEREST...... 16
DISCLOSURES & POLICY AVAILABILITY...... 17
ENCROACHMENTS/PROJECTIONS...... 17
EXCLUSIONS FROM COVERAGE - CONDITIONS AND STIPULATIONS...... 17
FOR EXCLUSION...... 17
FOR CONDITIONS AND STIPULATIONS...... 17
FEDERAL TAX LIENS...... 17
FIRPTA (UNDERWRITING BULLETIN SE-44)...... 18
FORECLOSURE...... 18
FURTHER REQUIREMENTS...... 19
GAP INSURANCE...... 19
GOVERNMENT RESOLUTIONS...... 19
GUARDIANSHIP...... 19
HOMEOWNERS ASSOCIATIONS...... 20
INDEMNIFICATION...... 20
JOINT VENTURES……………………………………………………………………………..20
JUDGMENTS...... 20
LEASES...... 21
RECORDATION OF LEASE...... 21
GENERAL...... 21
LIENS...... 22
LIMITED LIABILITY COMPANIES/PARTNERSHIPS...... 22
LIS PENDENS...... 22
LITIGATION/DISMISSAL...... 22
MINORS TAKING TITLE, MORTGAGING OR CONVEYING...... 23
MOBILE HOMES...... 23
MORTGAGES...... 23
ASSUMPTIONS, PARTIAL RELEASES & SATISFACTIONS...... 23
MORTGAGES-LIMITED LIABILITY COMPANY...... 24
MORTGAGES-LIMITED LIABILITY PARTNERSHIPS...... 24
MORTGAGES-LIMITEDPARTNERSHIPS...... 25
MORTGAGE-TRUSTEE...... 25
PARTNERSHIPS...... 26
GENERAL PARTNERSHIPS...... 26
LIMITED PARTNERSHIPS...... 26
QUIET TITLE SUITS...... 27
RELEASES (MISC)...... 27
ROAD ACCESS (LACK OF)...... 27
STANDARD EXCEPTIONS - DELETION...... 27
OWNERS POLICY...... 28
STATE TAX LIENS...... 28
STREET ABANDONMENT...... 28
SURVEYS...... 28
TAXES...... 29
ESTATE...... 29
REAL ESTATE...... 29
TAX COMPLIANCE...... 29
TO BE DETERMINED...... 29
TRUSTS...... 30
UCC-1 FINANCING STATEMENT/TERMINATION...... 30
ACCESS
1ACCEvidence satisfactory to the Company that there is a right of access to and from the land.
AFFIDAVITS
AF1Satisfactory proof in affidavit form establishing that died intestate in the year , leaving as his/her sole heir(s) at law; that said heir(s) were sui juris on the date of their conveyance to ; and that there are no debts due the estate of said .
AF2We will require proof by affidavit, which refers to the land, that _____ has/have never been adjudicated bankrupt nor incompetent and has/have never had any judgments, tax liens or liens of any nature whatsoever filed against him/her.
AF3Affidavit, in recordable form, from _____, setting forth facts sufficient to establish that the transaction to be insured herein is at “arms length,” for adequate and fair consideration (appraised valuation).
AF4Non-identity affidavit, from _____, setting forth facts sufficient to establish that he/she is not one and the same as _____, for whom incompetency proceedings were brought under Case No. _____ in the Office of the Probate Court for _____County.
AF5Affidavit executed by current owner(s) of the land on a form to be supplied by the Company stating that there have been no improvements to the land within the past 90 days which could give rise to a construction lien and that there are no accounts or claims pending and unpaid which could constitute a lien against the land. The affidavit will also state that affiant has no knowledge of any natural person or legal entity who has or could have a claim of right, interest or lien adverse to the Insured.
AF6Non-identity affidavit, from _____, setting forth facts sufficient to establish
that he/she is not one and the same person as that person who is the
subject of the _____, recorded in the Office of the Clerk of Court/RMC/Register of Deeds for _____ County in _____ Book _____, Page _____.
AF7South Carolina Surveyor’s Affidavit certified to WFG National Title Insurance Company prepared by a registered land surveyor acceptable to the Company, stating the following: OPT1: The land described in Deed Book _____, Page _____, is adjacent to and contiguous with the lands described in Schedule A, and no overlap exists between said land and the land described in Schedule A. OPT2: The parcels of land described in Schedule A are contiguous, with no overlaps or gaps between the parcels.
AFFIRMATIVE COVERAGE LIMITATION
AFFCWith respect to exception _____, Schedule B, the loan policy to be issued will contain affirmative coverage as shown in the attached specimen endorsement (Exhibit ___).
ARCHITECTURAL CONTROL
ACC/Obtain approval of construction plans and specifications from the
Architectural Control Committee pursuant to the recorded in the
Office of the Clerk of Court/RMC/Register of Deeds for County in Book , Page .
ASSIGNMENT OF RENTS AND LEASES/RELEASE
ARL1Release of Assignment of Rents and Leases from to , dated ,
recorded , in the Office of the Clerk of Court/RMC/Register of Deeds for
County in Book , Page .
ARL2Release of Conditional Assignment of Rents and Leases, in favor of _____,
recorded in the Office of the Clerk of Court/RMC/Register of Deeds for
_____County in _____ Book _____, Page _____.
ARL3Partial Release of Conditional Assignment of Rents and Leases, in favor of
_____, recorded in the Office of the Clerk of Court/RMC/Register of Deeds
for _____County in _____ Book _____, Page _____.
ARL4Assignment of Rents and Leases by _____ to _____, dated _____, recorded
_____, in the Office of the Clerk of Court/RMC/Register of Deeds for _____
County in _____ Book _____, Page _____.
ARNNOTE: THIS COMPANY RESERVES THE RIGHT TO MAKE ADDITIONAL REQUIREMENTS AS NECESSARY.
ASSOCIATION LIENS
ASL1Proof of payment of any Homeowners / Horizontal Property RegimeAssociation liens and/or assessments.
ASL2The Company requires a subordination agreement from the Homeowners / Horizontal Property Regime Association of its lien for maintenance assessments, subordinating such rights to the mortgage to the proposed insured.
SCHEDULE B, PART II, EXCEPTIONS
BP2The Policy when issued will contain the following matters on Schedule B-II:
BANKRUPTCY
BK1Payment, satisfaction and cancellation of record of the following judgments:
1.
In the alternative, we will require certified copies of the Petition in Bankruptcy, the Schedule of Liabilities showing said judgments, and the Discharge of the Debtor, in Case No. , in re . In addition thereto, we will require a copy of the Order issued under 11 USC Section 522 (f), proof of notice to the holders of said judgments, proof that said judgments are not debts which are excepted from discharge by 11 USC Section 523, or proof that the assets used to purchase the land were exempted in or acquired subsequent to said bankruptcy proceedings.
BK2A certified copy of the Order of Cancellation and Discharge of the following Judgments, issued by the Court(s) which entered each Judgment, together with a certified copy of the Order of Discharge in Bankruptcy, Case No. in re :
1. Final Judgment
BK3Examination of Bankruptcy Case No. , in re: . The Company reserves the right to make further requirements as it may deem necessary.
BK4A certified copy of the Order to sell the land free and clear of all liens pursuant to 11 USC Section 363.
BK5Evidence satisfactory to the Company that the sale and conveyance of the land has been approved by the Bankruptcy Court having jurisdiction in the bankruptcy of _____, and that the following procedure has been followed:
a.Pursuant to notice to all creditors and parties in interest, the Bankruptcy Court has issued its order authorizing the specific transfer to the proposed insured.
b.The order was uncontested and there has been no objection to jurisdiction of the court.
c.No notice of appeal has been filed, no stay has been granted during the appeal period, and at least ten (10) days have elapsed since issuance of the order.
d.The order was final, under the procedural rules in effect in the district, and no approval or consent of the Federal District Court is required.
e.The Court confirmed the sale, or confirmation was unnecessary.
f.A copy of the Bankruptcy Court order authorizing the sale was recorded in the County land records concurrently with (or as an exhibit to) the deed to the proposed insured.
BUSINESS TRUST
BTR1Obtain and record in the Office of the ______for ______County, South
Carolina, the Trust Agreement referred to in instrument recorded in the
Office of the ______for ______County in ______Book ______, Page ______,
and any amendments thereto, together with satisfactory evidence that
said Trust is in full force and effect. A verified copy of the trust agreement must also be filed with the Secretary of State pursuant to Section 33-53-10,
South Carolina Code of Laws, 1976, as amended.
CHURCHES
The following requirements pertaining to conveyance of church land have general application, and must be revised to conform with the facts in each particular transaction.
A.WHERE INDEPENDENT CHURCH HAVING NO REGULAR FORM OF GOVERNMENT APPLIES FOR A LOAN
In the absence of anything to the contrary, the church is presumed to have a congregational form of government. Therefore, regardless of whether the title was acquired in the name of the trustees or in the name of the church itself, it would vest as a matter of law in the trustees.
CH1Obtain the passage of a resolution by the congregation at a regular or special meeting convened by reasonable notice from the pulpit of the church, authorizing the making of the loan and giving of the mortgage should be executed by all the trustees pursuant to the resolution, and it is also well to have the Pastor of the church join in the execution of the instrument.
B.INCORPORATED BODY
Where the members of the society constitute the incorporated body, consent of the corporation is necessary for the sale of church property by trustees, and the trustees acting without consent of the corporation have no title to convey and their deed executed under such circumstances is void.
1.Resolutions - General - Loan
CH2A certified copy of appropriate church resolutions passed in a business meeting assembled, authorizing the borrowing of money and encumbrance of the land as security therefore, and designating the appropriate church officers to execute the loan instruments, together with a Certificate of the Clerk of the Church identifying the persons so designated.
2.Resolutions - General - Sale or Purchase
CH3A certified copy of appropriate church resolutions passed in a business meeting assembled, authorizing the (purchase or conveyance) of the land, and designating the appropriate church officers to execute the necessary instruments, together with a Certificate of the Clerk of the Church, identifying the persons so designated.
3.Baptist - General
CH4A certified copy of the resolutions of the congregation of Baptist Church authorizing the (Trustees - Deacons) to consummate the transaction and execute the instrument to be insured, together with a Certificate of the Clerk of the Church identifying the present (Trustees - Deacons) of the church who must execute the instrument to be insured.
4.Baptist - Loan
CH5A Certified copy of the resolution adopted by the congregation of Baptist Church, while in business session assembled, authorizing the procurement of the loan and the execution of the instrument incidental thereto, by the (Trustees - Deacons) of Baptist Church, together with a Certificate of the Clerk of the Church identifying the present (Trustees - Deacons) of the Church who must execute the instrument to be insured.
5.Methodist - Sale - General
CH6The deed from Methodist Church must be executed pursuant to proper resolutions adopted at a special meeting of the Quarterly Conference of said Methodist Church, called and held pursuant to the Discipline of The Methodist Church.
6.Methodist - Sale - Specific
CH7A certified copy of the resolution of Quarterly Conference of Methodist Church approving the sale of the land for a stipulated price and directing the Trustees to execute and deliver an appropriate deed, and to receive the purchase money. The resolution should recite, and the Clerk or Secretary of the Quarterly Conference should include in the certificate, a statement to the effect that due notice of the meeting of the Quarterly Conference was given by announcement from the pulpit at a regular church service at least ten (10) days prior to the meeting.
The Pastor of the Church and the District Superintendent having jurisdiction thereof, must assent to the sale at the price and on the terms specified, and such assent must be evidenced by the signatures of said officials on the deed to the purchaser.
The deed to the purchaser should contain appropriate recital of the foregoing resolution and of the approval of the Pastor and District Superintendent.
7.Presbyterian - General
CH8A resolution of the congregation of Presbyterian Church authorizing the Trustees to consummate the transaction and execute the instrument to be insured, together with a Certificate of the Clerk of the Church identifying the present Trustees of the church, who must execute the instrument to be insured.
CONDOMINIUMS
CD1Proof of compliance with the requirements of the Master Deed for Horizontal Property Regime regarding the sale and transfer of the land.
CD2Proof that the Condominium Assessments on this unit are current.
CD3A Subordination Agreement from the Condominium Homeowners Association of its lien for maintenance assessments, subordinating such rights to the mortgage to the proposed insured.
CD4Certificate of Approval from the Condominium Home Owners Association pursuant to the Master Deed for Horizontal Property Regime.
CD5NOTE: STANDARD ALTA CONDOMINIUM ENDORSEMENT (ALTA 4) WILL BE ATTACHED TO AND MADE A PART OF THE FINAL LOAN POLICY.
CONSIDERATION (LACK OF)
CONSSatisfactory evidence must be furnished to the Company evidencing
adequate consideration for the conveyance from _____ to _____ by Deed
recorded in the Office of the Clerk of Court/RMC/Register of Deeds in Book _____, Page _____, to which only minimum documentary stamps were affixed.
CORPORATIONS AND CORPORATE STATUS
AMENDMENTS
CA1Recordation in the Office of the ______for ______County of certified copy
of the Articles of Incorporation of ______changing the name of the
corporation to ______.
MERGERS
CA8Recordation in the Office of the ______for ______County of certified copy
of the Articles of Merger reflecting the change in name of ______to
______.
ALIEN CORPORATION
CA3Proof that was in corporate good standing as of and is in good standing through the date of execution of the from the country of origin. If said Corporation has not obtained a permit from the Department of State to do business in South Carolina, then we will require that the Articles of Incorporation and any amendments thereto, be recorded. (Verified English translation is needed). We will further require satisfactory proof consistent with the foregoing as to the authority of the party executing the . Should any executing party be other than a natural person, we will require proof of corporate good standing as well as documentation of authority to execute on its behalf.
FOREIGN (NON-DOMESTIC OUT OF STATE) CORPORATION
CA4Obtain and record certified translations of all corporate documents relevant to this transaction (i.e., resolutions, the corporate charter and by-laws, and certificates as to the proper incorporation of _____, a corporation organized under the laws of _____), together with proof as to the continued corporate existence and good standing of said corporation from the acquisition through the conveyance of the land described in Schedule A. The Company reserves the right to make such additional requirements as it may deem necessary.
CA5Satisfactory evidence must be furnished as to the proper incorporation of _____, a _____ corporation, prior to acquisition of the land described in Schedule A, together with proof as to the current status of said corporation in its state of origin. The Company reserves the right to make such additional requirements as it may deem necessary.
CA6Satisfactory evidence must be furnished as to the proper incorporation of _____, a _____ corporation, prior to closing this transaction, together with proof as to the current status of said corporation in its state of origin. The Company reserves the right to make such additional requirements as it may deem necessary.
NON-PROFIT CORPORATION
CA7Satisfactory evidence should be furnished as to the incorporation of _____, a nonprofit corporation organized under the laws of the State of _____, together with proof as to the continued corporate existence and good standing of said corporation from acquisition through conveyance of the land described in Schedule A. In addition, the articles of incorporation together with certified copies of the resolutions of the governing body of said corporation, authorizing the transaction and designating the officers who will execute the instruments, must be furnished. The resolution must set forth the consideration and the terms of the transaction. The Company reserves the right to make such additional requirements as it may deem necessary.
GENERAL
CA2Evidence satisfactory to the Company that all corporations which are parties to the transaction are valid and subsisting under the laws of their respective domiciliary states and that all necessary consents, authorizations, resolutions, notices and corporate actions required under applicable law or corporate by-laws have been conducted, given, or properly waived, such that the actions by the corporations, acting through their duly constituted officers, are valid and binding acts of said corporations. (NOTE: Opinion of counsel for the respective corporations, in form and substance satisfactory to the Company, may be used to satisfy this requirement.)
DEATH CERTIFICATES
DC1We will require a certified copy of the Death Certificate of , to be
recorded in the Office of the Clerk of Court/RMC/Register of Deeds of
County, South Carolina.
DEEDS
DWDWarranty Deed from to conveying the land described under Schedule A herein.
DQCDQuit Claim Deed from _____ to proposed insured, conveying the land described under Schedule A herein.
DGOVRecordation of a deed duly authorized and executed from ______to ______pursuant to South Carolina Code of Laws and City/County of ______ordinances.
DEED-PERSONAL REPRESENTATIVES
DDODProper Deed of distribution from , as Personal Representative of the Estate of , deceased, to .
DPRExecution, delivery and recording of a proper deed from _____, Personal Representative of the Estate of _____, deceased, containing proper recitals as to powers in the deceased’s Will, or pursuant to proper Court Order to Sell, conveying title to the land to _____. The Company reserves the right to make additional requirements based upon a review of the deed and the probate proceeding.
DEED RECITALS-BEACH FRONT MANAGEMENT ACT
DBFMNOTE: This Deed must contain a disclosure of baselines, setback lines, velocity zone, seaward corners of habitable structures and the most recent erosion rates as required by Section 48-39-330 of the South Carolina Code of Laws, 1976, as amended.
DEED RECITALS-DEEDS IN LIEU
DDIL2This deed is an absolute conveyance, the grantor(s) having sold said land to
the grantee for a fair and adequate consideration, in addition to that above
recited, being full satisfaction of all obligations secured by the mortgage (deed of trust) executed by to (as mortgagor) (as mortgagee/trustee)