WFG Wiki - User contributions [en]

Mutual Indemnification Agreements

2021-12-09T22:24:06Z

Rachelrichardson: /* States with Treaties */

===What is a "Treaty"===

A handful of states have Mutual Indemnification Agreement (sometimes referred to as a “Treaty”), to which WFG National Title Insurance Co. is a party. These are a standing offer of indemnification given by each insurer who is party to the Treaty to every other party to the agreement. Each offers to protect the other party from loss or damage resulting from certain, very specific, usually narrow, types of title defects which may have been missed or not cured at the time the prior insurer insured a transaction. Coverage under a Treaty is never available if the prior insurer took a proper exception for the matter in their policy.

===What Can a Treaty Resolve===

Reliance on a Treaty is sometimes a solution to allow a current transaction to close without curing an underlying title defect. It does not “Fix” or “Cure” the underlying problem, so, depending on the issue, this “solution” may not be beneficial or acceptable to your customer, nor does reliance on a treaty necessarily protect a WFG agent from possible claims by their customer.

Because this is an extension of the liability of the prior insurer, the categories covered are generally narrow, including things like mortgages not satisfied of record, or not satisfied by the record holder of the mortgage (HELOCS are often excluded from the Treaty); inability to confirm authority of corporate officers and those operating under powers of attorney from record sources; whether all formalities were followed and due process given in foreclosures or other title litigation; lack of witnesses and acknowledgement defects (in states where these are cured by statute with the passage of time) and other title defects.

===What to Check when Relying on a Treaty===

In issuing a WFG policy, WFG agents (and in the West, our direct operations) are authorized to rely on any applicable Treaties without the need for specific approval by the Underwriting Department, upon confirming:

*Both WFG and the insurer that issued the prior policy are parties to the Treaty. (not all underwriters are parties to every treaty)
*The property to be insured is within the state covered by the Treaty.
*You have possession of (and keep in your files) a copy of the title policy insuring the current owner in some prior transaction, confirm that policy was issued after the defect in question was placed of record, and that the prior policy took no exception for that defect.
*The agent has confirmed that the defect in question is covered by the Treaty, does not exceed any dollar limits and that there is strict compliance with all of the Treaty’s requirements, conditions, and limitations.
*So that there is no question later about whether the defect was known and disclosed to the customer, and so WFG is on notice of potential recoveries under a Treaty, language similar to the following should be included in any WFG commitment and policy issued in reliance on the Treaty:

<blockquote>Note:
The title search revealed [describe the defect including any recording information]. No exception to coverage is being taken for this matter based on the indemnities provided in [________________Mutual Indemnification Agreement] and Title policy #XXXXX issued by [Company]. </blockquote>

*A copy of the prior company’s policy should be attached to the WFG policy when the WFG policies are submitted.

===Caution===

Treaties are highly technical, with lots of provisos and conditions. If you read it wrong, or don’t fully understand it – you as the agent may be taking on significant liability. In relying on a Treaty, you are insuring over a known title defect, and if the treaty doesn’t apply, you may be doing so without any protection from the prior insurer (and perhaps even releasing the prior insurer from liability); so if you have questions about the applicability of a treaty to a specific transaction, please contact the WFG underwriter in the state for your property.

The following Title Insurance Companies are now defunct and their policies may no longer be relied upon under any MIA:
* '''Guaranty Title and Trust Company'''
* '''Law Title Insurance Company'''
* '''National Attorneys’ Title Assurance Fund, Inc.'''
* '''New Jersey Title Insurance Company''' (signatory on NY and NJ MIA)
* '''Southern Title Insurance Company''' (signatory on GA MIA)
* '''Washington Title Insurance Company''' (signatory on NY MIA)

===States with Treaties===

WFG is currently party to Treaties in
*[https://uww.wfgnationaltitle.com/images/e/e8/AL_MIA_w_WFG.pdf Alabama]
**Note: WFG joined the Alabama MIA as Atlantic Title Insurance Company in 2002, and rejoined as WFG in 2020
*[http://uww.wfgnationaltitle.com/images/f/fc/Arkansas_Indemnity_AGreement_Combined.pdf Arkansas]
*[https://uww.wfgnationaltitle.com/images/5/5a/Florida_Fourth_Revised_Treaty_2016_Final.docx Florida]
**[http://uww.wfgnationaltitle.com/images/e/ef/FL_3rd_Rev-MIA_%28dted_11-2011%29_DND.pdf Florida pre-2016 MIA]
*[http://uww.wfgnationaltitle.com/images/2/2d/GA_MIA_Combined.pdf Georgia]
*[https://uww.wfgnationaltitle.com/images/c/cc/IN_Mutual_Indemnification_Agreement_2018.pdf Indiana]
*[http://uww.wfgnationaltitle.com/images/1/12/IL_Intercompany_indemnity_fully_executed.pdf Illinois]
**[http://uww.wfgnationaltitle.com/images/8/8d/Letter_from_First_American_Title.pdf Change of Notification Address for First American]
*[https://uww.wfgnationaltitle.com/images/1/13/MD_Mutual_Indemnity_Agreement_April_1%2C2020.pdf Maryland]
*[https://uww.wfgnationaltitle.com/images/6/6a/Michigan_Mutual_Indemnity_Agreement-_Updated_2019.pdf Michigan]
*[http://uww.wfgnationaltitle.com/images/a/a3/MS_MIA_Combined.pdf Mississippi]
*[http://uww.wfgnationaltitle.com/images/b/b8/NJ_Indemnification_Agreement_Combined.pdf New Jersey]
*[http://uww.wfgnationaltitle.com/images/5/57/NY_Second_Amended_and_Restated_MIA_Combined.pdf New York]
*[http://uww.wfgnationaltitle.com/images/1/14/SC_Mutual_Indemnity_Agreement.pdf South Carolina]
*[[Tennessee MIA]]
*[[Texas - Multiple Agreements]]
*[[Virginia MIA]]

WFG has elected not to join the Mutual Indemnification Agreement in North Carolina.

Mutual Indemnification Agreements

2021-12-09T22:23:21Z

Rachelrichardson: /* States with Treaties */

===What is a "Treaty"===

A handful of states have Mutual Indemnification Agreement (sometimes referred to as a “Treaty”), to which WFG National Title Insurance Co. is a party. These are a standing offer of indemnification given by each insurer who is party to the Treaty to every other party to the agreement. Each offers to protect the other party from loss or damage resulting from certain, very specific, usually narrow, types of title defects which may have been missed or not cured at the time the prior insurer insured a transaction. Coverage under a Treaty is never available if the prior insurer took a proper exception for the matter in their policy.

===What Can a Treaty Resolve===

Reliance on a Treaty is sometimes a solution to allow a current transaction to close without curing an underlying title defect. It does not “Fix” or “Cure” the underlying problem, so, depending on the issue, this “solution” may not be beneficial or acceptable to your customer, nor does reliance on a treaty necessarily protect a WFG agent from possible claims by their customer.

Because this is an extension of the liability of the prior insurer, the categories covered are generally narrow, including things like mortgages not satisfied of record, or not satisfied by the record holder of the mortgage (HELOCS are often excluded from the Treaty); inability to confirm authority of corporate officers and those operating under powers of attorney from record sources; whether all formalities were followed and due process given in foreclosures or other title litigation; lack of witnesses and acknowledgement defects (in states where these are cured by statute with the passage of time) and other title defects.

===What to Check when Relying on a Treaty===

In issuing a WFG policy, WFG agents (and in the West, our direct operations) are authorized to rely on any applicable Treaties without the need for specific approval by the Underwriting Department, upon confirming:

*Both WFG and the insurer that issued the prior policy are parties to the Treaty. (not all underwriters are parties to every treaty)
*The property to be insured is within the state covered by the Treaty.
*You have possession of (and keep in your files) a copy of the title policy insuring the current owner in some prior transaction, confirm that policy was issued after the defect in question was placed of record, and that the prior policy took no exception for that defect.
*The agent has confirmed that the defect in question is covered by the Treaty, does not exceed any dollar limits and that there is strict compliance with all of the Treaty’s requirements, conditions, and limitations.
*So that there is no question later about whether the defect was known and disclosed to the customer, and so WFG is on notice of potential recoveries under a Treaty, language similar to the following should be included in any WFG commitment and policy issued in reliance on the Treaty:

<blockquote>Note:
The title search revealed [describe the defect including any recording information]. No exception to coverage is being taken for this matter based on the indemnities provided in [________________Mutual Indemnification Agreement] and Title policy #XXXXX issued by [Company]. </blockquote>

*A copy of the prior company’s policy should be attached to the WFG policy when the WFG policies are submitted.

===Caution===

Treaties are highly technical, with lots of provisos and conditions. If you read it wrong, or don’t fully understand it – you as the agent may be taking on significant liability. In relying on a Treaty, you are insuring over a known title defect, and if the treaty doesn’t apply, you may be doing so without any protection from the prior insurer (and perhaps even releasing the prior insurer from liability); so if you have questions about the applicability of a treaty to a specific transaction, please contact the WFG underwriter in the state for your property.

The following Title Insurance Companies are now defunct and their policies may no longer be relied upon under any MIA:
* '''Guaranty Title and Trust Company'''
* '''Law Title Insurance Company'''
* '''National Attorneys’ Title Assurance Fund, Inc.'''
* '''New Jersey Title Insurance Company''' (signatory on NY and NJ MIA)
* '''Southern Title Insurance Company''' (signatory on GA MIA)
* '''Washington Title Insurance Company''' (signatory on NY MIA)

===States with Treaties===

WFG is currently party to Treaties in
*[https://uww.wfgnationaltitle.com/images/e/e8/AL_MIA_w_WFG.pdf Alabama]
**Note: WFG joined the Alabama MIA as Atlantic Title Insurance Company in 2002, and rejoined as WFG in 2020
*[http://uww.wfgnationaltitle.com/images/f/fc/Arkansas_Indemnity_AGreement_Combined.pdf Arkansas]
*[https://uww.wfgnationaltitle.com/images/5/5a/Florida_Fourth_Revised_Treaty_2016_Final.docx Florida]
**[http://uww.wfgnationaltitle.com/images/e/ef/FL_3rd_Rev-MIA_%28dted_11-2011%29_DND.pdf Florida pre-2016 MIA]
*[http://uww.wfgnationaltitle.com/images/2/2d/GA_MIA_Combined.pdf Georgia]
*[https://uww.wfgnationaltitle.com/images/c/cc/IN_Mutual_Indemnification_Agreement_2018.pdf Indiana]
*[http://uww.wfgnationaltitle.com/images/1/12/IL_Intercompany_indemnity_fully_executed.pdf Illinois]
**[http://uww.wfgnationaltitle.com/images/8/8d/Letter_from_First_American_Title.pdf Change of Notification Address for First American]
*[https://uww.wfgnationaltitle.com/images/1/13/MD_Mutual_Indemnity_Agreement_April_1%2C2020.pdf Maryland]
*[https://uww.wfgnationaltitle.com/index.php/File:Michigan_Mutual_Indemnity_Agreement-_Updated_2019.pdf Michigan]
*[http://uww.wfgnationaltitle.com/images/a/a3/MS_MIA_Combined.pdf Mississippi]
*[http://uww.wfgnationaltitle.com/images/b/b8/NJ_Indemnification_Agreement_Combined.pdf New Jersey]
*[http://uww.wfgnationaltitle.com/images/5/57/NY_Second_Amended_and_Restated_MIA_Combined.pdf New York]
*[http://uww.wfgnationaltitle.com/images/1/14/SC_Mutual_Indemnity_Agreement.pdf South Carolina]
*[[Tennessee MIA]]
*[[Texas - Multiple Agreements]]
*[[Virginia MIA]]

WFG has elected not to join the Mutual Indemnification Agreement in North Carolina.

File:Michigan Mutual Indemnity Agreement- Updated 2019.pdf

2021-12-09T22:22:00Z

Rachelrichardson:

MI Underwriting Summary

2021-08-26T18:40:24Z

Rachelrichardson:

==Search/Exam==
*Minimum Search Requirements -- No Statute. Marketable Title Act – 40 years
*Search Standards
*Plant or other search restrictions -- No

*Foreclosure Checklist --
WARNING – property tax issues -
*Survey Requirements -- No

==UPL==
Attorney involvement is not required for title searches or issuance of policies. However, an attorney must draft “non-form” instruments if the seller is unwilling to act as drafter.
==Vesting==

The following tenancy types are recognized:
* Individual
* Tenancy by the entireties
* Joint tenancy
* Joint tenancy with right of survivorship
* Tenancy in common (default)
* Life estate
* Enhanced life estate (Lady Bird).

Acceptable instruments for transferring ownership on real property: Warranty Deed (either General or Special) however other forms of deeds exist, such as: Covenant Deeds, Quit Claim Deeds, Trustee’s Deeds, Personal Representative Deeds. (Limited Warranty Deeds are prohibited by statute.)

==Witness Requirements==
No longer required.

==Property Tax ==

==Mortgage/Transfer Tax==
No Mortgage Tax. Deed transfer taxes are provided by statute and uniform across the state. The taxes are based upon the total value of the property being conveyed.
The rates are:

$7.50 per thousand for State; plus
$1.10 per thousand for County

==Spousal Joinder Requirements/Homestead==

The non-owning spouse must join in a mortgage other than a purchase money mortgage. The non-owning spouse is not required to join in a purchase money mortgage. A non-owning wife must sign on a deed to sell property to release her Dower interest, but a non-owning husband does not need to join in on a conveyance by the wife.

==Power Of Attorney==

==Construction Liens==

==Foreclosure Review==

==Instrument Requirements ==
* An unrecorded land contract may be valid between the parties, but it is not insurable. Failure to record leaves the buyer completely unprotected, even though they have equitable title in the property. The forfeiture of a land contract often requires foreclosure, and therefore, we require that either the land contract or the Memo of the land contract be recorded to evidence the insurable interest.

==Who May Serve As Trustee On Deed Of Trust==
Mortgages only. Deeds of Trust may not be recognized.

==Time Limitations==
*US Judgment Liens -- 20 years
*State Court Judgment Liens --
*Federal Tax Liens -- 10 years (+ 30 days)
*State Tax Liens --
*Estate Tax Lien -- 10 years
*State Inheritance Tax Liens --
*Mechanics Liens --
*Financing Statements --
*Mortgages --
*HOA Liens --
*Condominium assessments --
*Child Support Liens --

==Odd Stuff==
*Usury coverage through an endorsement is available. The usury statute is MCL § 438.31 et sec.
*Michigan has a dormant Oil & Gas lease law which may eliminate oil and gas (but not other mineral) interests if not of record or actively used for 20 years. Strict requirements apply [http://www.legislature.mi.gov/(S(o4nrmvt2uwzs342e4mw5t4pv))/mileg.aspx?page=GetObject&objectname=mcl-554-291 s. 554.291]. [https://connect.michbar.org/envlaw/reports/deskbook/chapter20#_Toc325551731 OGM Reference]

==Tax Sales==

In general, when a property is purchased on tax sale in Michigan via a Quit Claim deed from the county treasurer only the tax interest in the property is conveyed to the tax sale purchaser. The ownership interest in the property remains vested in the original owner.

We cannot insure a property purchased on tax sale unless the owner of the tax interest has also obtained the ownership interest, giving them fee simple title to the property.

In order for the owner of the tax interest to obtain that ownership interest (to our satisfaction to insure), we need one of two things:

1. Deed from the prior owner.
2. An Order Quieting Title to the tax sale purchaser with all parties properly noticed.