COMMONWEALTH LAND TITLE INSURANCE COMPANY

Transcription

1 COMMONWEALTH LAND TITLE INSURANCE COMPANY TITLE INSURANCE RATES AND CHARGES FOR THE STATE OF MAINE EFFECTIVE: NOVEMBER 12, 2012 (Unless Otherwise Specified Herein)

2 TABLE OF CONTENTS SECTION TITLE INSURANCE RATES FOR OWNER'S OR LEASEHOLD POLICIES... 1 SECTION TITLE INSURANCE RATES FOR MORTGAGES (LOAN POLICIES... 1 SECTION SIMULTANEOUS ISSUANCE OF OWNER'S AND LOAN POLICIES... 3 SECTION SIMULTANEOUS ISSUANCE OF ALTA HOMEOWNER S POLICY OF TITLE INSURANCE FOR A ONE-TO-FOUR FAMILY RESIDENCE AND LOAN POLICIES... 4 SECTION TITLE INSURANCE PREMIUMS FOR REFINANCE TRANSACTIONS... 5 SECTION MODIFICATION OF AN INSURED MORTGAGE... 5 SECTION SURVEY COVERAGE... 6 SECTION GENERAL... 6 SECTION INTERIM TITLE INSURANCE BINDERS OR COMMITMENTS... 6 SECTION CENTRALIZED REFINANCE RATES... 7 SECTION PREMIUM CHARGE FOR EXTRA-HAZARDOUS RISK... 8 APPENDIX A APPENDIX B i

3 Rates quoted in this schedule are for title insurance only and do not include charges for searches, abstracts, attorney s fees, escrow or closing services. SECTION 1 TITLE INSURANCE RATES FOR OWNER'S OR LEASEHOLD POLICIES 1.1 An owner s policy, insuring fee simple estate, will not be issued for less than the full value of the premises. A. An owner s policy issued at the time of the purchase of the property shall be based on the full consideration, including the aggregate unpaid principal sum of any mortgage(s) or other liens, claims, taxes and any other municipal charge not being paid. A policy may be issued in an amount in excess of the full consideration where agreed to by the Insurer and the Insured. B. Where an owner desires that an owner s policy be issued after acquisition of title, the rate shall be based upon any amount the owner may request but not less than the present fair market value of the property as of the time the owner s policy is issued. C. When the lender insured under a loan policy acquires title to the land by foreclosure or by voluntary conveyance in extinguishment of the debt and requests owner s title insurance, such lender may be issued an owner s policy and the applicable charge shall be based upon the fair market value of the property at the time the owner s policy is issued. An owner s policy, insuring a leasehold estate, will not be issued for less than the insurable interest of the lessee. 1.2 The premium charge for original owner s or leasehold insurance policy shall be: 1. Regular ALTA Owner s Policy: Up to and including $1,000,000 of insurance coverage $3.00/$1, Over $1,000,000 of insurance coverage $0.45 to $3.00/$1, ALTA Homeowner s Policy of Title Insurance for a One-to-Four Family Residence: Up to and including $1,000,000 of insurance coverage $3.50/$1, Over $1,000,000 of insurance coverage $1.50 to $3.00/$1, Minimum Premium: $ Note: To compute an insurance rate on a fractional thousand of insurance, such fractional thousand is rounded upward to the next highest thousand. SECTION 2 TITLE INSURANCE RATES FOR MORTGAGES (LOAN POLICIES) 2.1 The word mortgage shall be construed to mean any instrument commonly used in any given jurisdiction to secure a loan on real estate. A. A loan policy of title insurance shall be written in an amount equal to the face amount of the insured mortgage, unless paragraph B, below, applies. B. In the following special situations, a loan policy shall be written: 1

4 1. In an amount equal to the value of the premises, if the face amount of the insured mortgage exceeds the value of the premises; 2. In the amount allocated by the insured: i. if the principal indebtedness is secured by mortgages on multiple premises, ii. the aggregate of the values of all the premises securing the principal indebtedness exceeds the amount of the principal indebtedness, and iii. the sum of the allocated values equals the ratio of each allocated value to the value of the premises to which it applies to the same ratio for all other premises securing the principal indebtedness; 3. In an amount that exceeds the amounts calculated in accordance with paragraph A or B(1) or B(2), if the insured requests that amount of insurance include interest, additional interest, shared appreciation interest or other amount which is secured by the insured mortgage but not included in the principal amount of the mortgage. The term premises as used in this manual means (i) the land and improvements on the land if the policyholder owns the land with its improvements, or (ii) title to the land with its improvements is encumbered by the insured mortgage. If title to the improvements has been severed from title to the land and it is vested in someone other than the owner of the land, or if the insured mortgage encumbers only title to the land or title to the improvements, then the term premises shall mean the severed interest as it is described in Schedule A of the policy. 2.2 The premium charge for mortgage title insurance shall be: 1. Regular ALTA Loan Policy: Up to and including $1,000,000 of insurance coverage $1.75/$1, Over $1,000,000 of insurance coverage $0.40 to $1.75/$1, ALTA Expanded Coverage Residential Loan Policy: Up to and including $1,000,000 of insurance coverage $2.50/$1, Over $1,000,000 of insurance coverage $1.25 to $2.50/$1, Minimum Premium: $ Note 1: When an ALTA Expanded Coverage Residential Loan Policy is issued, there is no additional charge for the following endorsements: ALTA Form 4-06, ALTA Form 5-06, ALTA Form 6-06, ALTA Form , ALTA Form and, ALTA Form Note 2: To compute an insurance rate on a fractional thousand of insurance, such fractional thousand is rounded upward to the next highest thousand. 2.3 Simultaneous Junior Mortgages. When a junior mortgage is insured simultaneously with a senior mortgage covering identical property, the rate applicable to the loan policy insuring the junior mortgage shall be the same as the rate applicable to the loan policy insuring the senior mortgage. 2

5 SECTION 3 SIMULTANEOUS ISSUANCE OF OWNER'S AND LOAN POLICIES 3.1 When an owner s policy and a loan policy covering identical land are issued simultaneously, the rates applicable for the owner s policy shall be the regular owner s rates. A. Owner's (or leasehold owner's) and loan (or leasehold loan) policies issued at the same time: 1. Residential property: The premium for the loan policy so simultaneously issued will be $50.00 for the amount of insurance not in excess of the owner s policy. 2. Commercial property: The premium for the loan policy so simultaneously issued will be $ for the amount of insurance not in excess of the owner s policy. Note: Commercial transactions include any property interest other than transactions involving one-to-four family residential, owner-occupied property. Owner-occupied property includes, but is not limited to, a vacation property used primarily for residential purposes by the owner. The premium on the amount of the loan policy exceeding the owner s policy is calculated at the title insurance rates for mortgages in the applicable category. The title must be continued down to a date which will include the filing for record of both the deed to the mortgagor and the mortgage itself. Both policies must bear the same effective date and the owner s policy must show the mortgage(s) and lease(s), if any, as exceptions. In the case when an existing owner s policy is being endorsed to increase the coverage during a refinance transaction, a loan policy will be issued at the simultaneous issue rate up to the amount of the increased coverage, and any additional loan amount in excess of the increased owner s coverage will be at the regular loan rate. B. Two or more loan policies: Charge the scheduled simultaneous issue fee ($100 for commercial transactions, $50 for residential transactions) for each mortgage to be insured, so long as the combined total of the loan liability does not exceed the amount of the owner's liability. If the combined total loan liability exceeds the amount of the owner's liability, then the appropriate rates for loan policies set out herein shall apply to the amount exceeding the amount of the owner's liability, together with the simultaneous issue fee ($100 for commercial transactions, $50 for residential transactions). Note 1: In addition to the premium charged for simultaneous issued polices as noted above, charges for endorsements and deletion of the survey exception on the basis of an affidavit must be added where appropriate, and when a regular owner s policy is issued, any endorsements issued with the loan policy will be at the regular rate. Note 2: The simultaneous issue rate does not apply in the case of the issuance of a standard owner s policy and an ALTA Expanded Coverage Residential Loan Policy. The regular premium rates for each policy apply in this situation. 3

6 SECTION 4 SIMULTANEOUS ISSUANCE OF ALTA HOMEOWNER S POLICY OF TITLE INSURANCE FOR A ONE-TO-FOUR FAMILY RESIDENCE AND LOAN POLICIES 4.1 When an ALTA Homeowner s Policy of Title Insurance for a One-to-Four Family Residence and a loan policy covering identical land are issued simultaneously, the rates applicable for the owner s policy shall be the ALTA Homeowner's Policy of Title Insurance for a One-to-Four Family Residence rates. A. ALTA Homeowner's Policy of Title Insurance for a One-to-Four Family Residence and any loan policies issued at the same time: Residential property only: The premium for the loan policy so simultaneously issued will be $50.00 for the amount of insurance not in excess of the ALTA Homeowner's Policy of Title Insurance for a One-to-Four Family Residence. The premium on the amount of the loan policy exceeding the ALTA Homeowner's Policy of Title Insurance for a One-to-Four Family Residence is calculated at the title insurance rates for mortgages in the applicable category. The title must be continued down to a date which will include the filing for record of both the deed to the mortgagor and the mortgage itself. Both policies must bear the same effective date and the owner s policy must show the mortgage(s), if any, as exceptions. In the case when an existing ALTA Homeowner's Policy of Title Insurance for a One-to-Four Family Residence is being endorsed to increase the coverage during a refinance transaction, a loan policy will be issued at the simultaneous issue rate up to the amount of the increased coverage, and any additional loan amount in excess of the increased owner s coverage will be at the loan rate for mortgages in the applicable category. B. ALTA Homeowner's Policy of Title Insurance for a One-to-Four Family Residence and two or more loan policies: Charge the scheduled simultaneous issue fee of $50 for each mortgage to be insured, so long as the combined total of the loan liability does not exceed the amount of the ALTA Homeowner s Policy of Title Insurance for a One-to-Four Family Residence insurance liability. If the combined total of the loan liability exceeds the amount of the owner's liability, then the appropriate rates for loan policies set out herein shall apply to the amount exceeding the amount of the owner's liability, together with the simultaneous issue fee of $50. Note 1: When an ALTA Homeowner s Policy of Title Insurance for a One-to-Four Family Residence is issued, there is no additional charge on the loan policy for the Secondary Mortgage Market Endorsement, or for the following endorsements included by reference in the ALTA Expanded Coverage Residential Loan Policy, when the coverage is provided: ALTA Form 4-06; ALTA Form 5-06; ALTA Form 6-06; ALTA Form ; ALTA Form ; and, ALTA Form This applies whether the standard or ALTA Expanded Coverage Residential Loan Policy is being issued simultaneously with the ALTA Homeowner s Policy of Title Insurance for a One-to- Four Family Residence. Note 2: In addition to the premium charged for simultaneous issued polices and those specific endorsements as noted above, charges for other endorsements and deletion of the survey exception on the basis of an affidavit must be added where appropriate, and when an ALTA Homeowner s Policy of Title Insurance for a One-to-Four Family Residence is issued, any endorsements issued with the loan policy other than the Secondary Mortgage Market, ALTA Form 4-06; ALTA Form 5-06; ALTA Form 6-06; ALTA Form ; ALTA Form ; and, ALTA Form 9-06 will be at the regular rate. 4

7 SECTION 5 TITLE INSURANCE PREMIUMS FOR REFINANCE TRANSACTIONS 5.1 A refinance loan rate shall be given whenever mortgage insurance is applied for within three years after the date of any unpaid institutional first mortgage of record or within three years of the effective date of an owner s policy of title insurance insuring the current owner of the property, provided that (a) the property being mortgaged is the same as that described in the unpaid mortgages of record or the current owner s policy, (b) there has been no change in the ownership of the property since the date of the unpaid mortgage(s) of record or the effective date of the current owner s policy, and (c) the greater of the face amounts of all unpaid institutional mortgages or existing current owner s policy which liability amount does not exceed $1,000, The refinance loan rate shall be 60% of the applicable scheduled rate up to the greater of face amounts of all unpaid institutional mortgage(s) of record dated within three years preceding the mortgage insurance application or the face amount of the existing policy insuring the current owner. Any amount financed in excess of the face amounts of all unpaid mortgages of record or in excess of the current owner s policy amount, whichever is greater, shall be charged at the full loan rate. For the purpose of the refinance rate, no change in ownership shall occur when title is conveyed between the parties identified as mortgagors in the prior unpaid mortgage(s) of record. 1. Regular ALTA Loan Policy: Up to and including $1,000,000 of insurance coverage $1.05/$1, Over $1,000,000 of insurance coverage $0.40 to $1.05/$1, ALTA Expanded Coverage Residential Loan Policy: Up to and including $1,000,000 of insurance coverage $1.50/$1, Over $1,000,000 of insurance coverage $1.25 to $1.50/$1, Minimum Premium: $ NOTE 1: Where the greater of the face amounts of all unpaid institutional mortgages or existing current owner s policy amount does exceed $1,000,000.00, see the applicable sections above relating to Mortgage Rates in excess of $1,000, NOTE 2: In addition to the premium charged for refinances as noted above, charges for endorsements to standard loan policies and deletion of the survey exception on the basis of an affidavit must be added where appropriate. SECTION 6 MODIFICATION OF AN INSURED MORTGAGE 6.1 Whenever a mortgage previously insured by the Company is modified to extend the maturity date of the indebtedness, increase interest rate, completely restate the terms, substitute a borrower(s), or otherwise amend its provisions, an endorsement to the existing policy extending coverage through the date of recordation of the modification and showing an amount of insurance equal to the unpaid principal balance may be issued, provided that (a) the property described in the modified mortgage is the same as that described in the original mortgage previously insured by the Company, and (b) receipt of a certificate of title approved by the Company, covering the period from the date of the prior policy through the date of recordation of the mortgage modification. The rate of $0.50 per $1,000 shall be based on the unpaid principal balance of the loan immediately prior to the modification, for which there will be a charge of at least $ Any increase in liability will be calculated at the full rate applicable for loan policies. 5

8 SECTION 7 SURVEY COVERAGE 7.1 For policies insuring single family residential property the survey exception may be deleted provided the Company is furnished the appropriate executed Residential Affidavit Survey. A. Regular ALTA Loan Policy & ALTA Expanded Coverage Residential Loan Policy: The fee for the coverage is $ B. ALTA Homeowner s Policy of Title Insurance for a One-to-Four Family Residence: The fee for the coverage is $ Check with the Company for availability for the particular transaction. 7.2 For policies insuring commercial property, the survey exception may be deleted provided the Company is furnished the appropriate executed Commercial Survey Affidavit. Check with the Company for availability for the particular transaction. Regular ALTA Loan Policy: The fee for the coverage is $ SECTION 8 GENERAL 8.1 Special Risks. All rates quoted herein are minimum risk rate premiums. The Company reserves the right to charge additional amounts in cases where unusual insurance risks are assumed or unusual services performed in the transaction. 8.2 Commercial Transactions. Commercial transactions include any property interest other than transactions involving one-to-four family residential, owner-occupied property. Owner-occupied property includes, but is not limited to, a vacation property used primarily for residential purposes by the owner. 8.3 Open Ended Mortgages. The face amount of the policy to which the applicable rate applies is based on the maximum amount which may be disbursed under the open-end provision. 8.4 Mortgage Modifications. The rate for increased coverage on a loan policy by virtue of a recorded mortgage modification provided by endorsement shall be calculated at the rates set forth in Section 2 applicable to the increase in coverage, and not calculated based on the cumulative policy amount. See Section 6, above, for other charges in connection with mortgage modifications. 8.5 Endorsements. Rates applicable to endorsements appear in Appendix B and C. SECTION 9 INTERIM TITLE INSURANCE BINDERS OR COMMITMENTS 9.1 An Interim Title Insurance Binder or Commitment is issued to show the liens, defects and objections to the title to be paid or removed before a policy can be issued, and the exceptions, if any, which will appear in the policy when issued. It is also a binding obligation of the Company to issue its policy when the requirements of the binder or commitment have been complied with and premiums and fees have been paid. No liability shall attach until premiums and fees have been paid. When an Interim Title Insurance Binder or Commitment is required for the closing of any transaction, the Company s charge is the premium on the policy committed for at the applicable title insurance rates. If the transaction falls through, and no policy is issued, the charge will be 6

9 25% of the foregoing charge, with a minimum charge of $ for residential transactions and $ for commercial transactions. This charge shall not apply if a purchaser of a one-to-four family residential property fails to complete the purchase because of his or her inability to obtain financing for the property described in the commitment. SECTION 10 CENTRALIZED REFINANCE RATES 10.1 Centralized Refinance Rate I The charge for a loan policy issued in connection with loan transactions which meet the criteria set forth below shall be as follows: Centralized Amount of Insurance Refinance Rate I $1 - $250,000 $360 $250,001 - $500,000 $540 $500,001 - $750,000 $660 $750,001 - $1,000,000 $800 $1,000,001 - $1,250,000 $925 $1,250,001 - $1,500,000 $1,000 $1,500,001 - $2,000,000 $1,075 $2,000,001 - $3,000,000 $1,300 The Centralized Refinance Rate I applies only to loan transactions which meet the following criteria: 1. The loan is not in excess of $3,000,000; 2. The loan is secured by a mortgage or deed of trust encumbering real property improved with a one-to-four family residential dwelling unit or residential condominium unit; 3. The loan proceeds must be used to refinance an existing loan secured by the same property; 4. Electronic and paperless order opening and electronic and paperless delivery of the preliminary report or commitment; and 5. The new policy coverage is ALTA in form (including an ALTA Loan Policy or ALTA Short Form Residential Loan Policy) with streamlined searching providing for generic exceptions for CC&Rs, easements, minerals, mineral rights or survey matters. Note 1: Not applicable to construction loans or loan policies issued concurrently with owner s policies. Note 2: Where the applicable rate(s) and form(s) is filed, or otherwise authorized to be issued, coverages provided under the following endorsements will be included at no additional charge upon request of the lender at the time of policy issuance: ALTA 4-06, ALTA 5-06, ALTA 6-06, ALTA , ALTA 9-06, ALTA and ALTA All other endorsements shall be charged in accordance with this manual. Note 3: No agent or underwritten title company may offer this rate unless expressly authorized in writing by the Company s management to do so for each lender Centralized Refinance Rate II The charge for a loan policy issued in connection with loan transactions which meet the criteria set forth below shall be as follows: 7

10 Centralized Refinance Amount of Insurance Rate II $1 - $250,000 $320 $250,001 - $500,000 $400 $500,001 - $750,000 $460 $750,001 - $1,000,000 $520 $1,000,001 - $1,250,000 $630 $1,250,001 - $1,500,000 $750 The Centralized Refinance Rate II applies only to loan transactions which meet the following criteria: 1. The lender must enter into an agreement with either the Company s centralized processing units or with an agent or underwritten title company authorized by the Company in writing to offer this rate which specifies, among other matters, a maximum cancellation rate and the methods of order opening and tracking; 2. Electronic and paperless order opening and electronic and paperless delivery of the preliminary report or commitment; 3. The loan is not in excess of $1,500,000.00; 4. The loan is secured by a mortgage or deed of trust encumbering real property improved with a one-to-four family residential dwelling unit or residential condominium unit; 5. The loan proceeds must be used to refinance an existing loan secured by the same property; 6. The loan transaction must be initiated and coordinated through a centralized point of contact with the originating lender; 7. Orders must be opened with the Company s centralized processing units or with an agent or underwritten title company authorized by the Company to offer this rate; 8. Cancelled orders must not exceed the maximum cancellation rate established by the Company s centralized processing units or by an agent or underwritten title company authorized by the Company to offer this rate; and 9. ALTA Short Form Residential Loan Policy must be issued. Note 1: Not applicable to construction loans or loan policies issued concurrently with owner s policies. Note 2: There is no additional charge for any endorsements customarily issued concurrently with a policy priced pursuant to this Section when requested at the time of policy issuance. Note 3: In order to offer this rate, an agent or underwritten title company, and any office thereof offering this rate, must have a multi-state presence, must process transactions in a centralized electronic environment, and must perform the management functions otherwise required of the Company s centralized processing divisions under the provisions of this Section. In addition, no agent or underwritten title company may offer this rate unless expressly authorized in writing by the Company s management to do so for each lender. SECTION 11 PREMIUM CHARGE FOR EXTRA-HAZARDOUS RISK 11.1 In addition to any other charges set forth in this manual, the Company may charge an additional extra-hazardous risk premium in any case where, in the opinion of the Company, there exists an increased, extraordinary, and/or unusual risk with respect to the issuance of its policy or policies 8

11 of title insurance or endorsements related thereto. Such charge shall be quoted upon request and shall be based on the specific risk inherent to the requested insurance coverage. 9

12 1. ALTA U.S. Policy 2. ALTA Owner s Policy 3. ALTA Loan Policy 4. ALTA Short Form Residential Loan Policy 5. ALTA Homeowner s Policy of Title Insurance APPENDIX A SCHEDULE OF TITLE INSURANCE POLICY FORMS 6. ALTA Expanded Coverage Residential Loan Policy 7. ALTA Short Form Expanded Coverage Residential Loan Policy 10

13 APPENDIX B SCHEDULE OF TITLE INSURANCE RESIDENTIAL ENDORSEMENT FORMS Change Endorsement $25.00 Date Down Endorsement $25.00 Secondary Mortgage Market Endorsement $25.00 ALTA 3-06 Zoning Endorsement - Vacant Land ALTA Zoning Endorsement Completed Structure Up to and including $1,000,000 of insurance coverage $.75/$1, Over $1,000,000 of insurance coverage $.15 to $.75/$1, ALTA 4-06 Condominium Endorsement $25.00 ALTA 5-06 Planned Unit Development Endorsement $25.00 ALTA 6-06 Variable Rate Mortgage Endorsement $25.00 ALTA Variable Rate Mortgage Negative Amortization Endorsement $25.00 ALTA Manufactured Housing Endorsement $25.00 ALTA Environmental Protection Lien Endorsement (residential loan policy only) $25.00 ALTA Restrictions, Encroachments, Minerals Endorsement $25.00 ALTA Leasehold Owner s Endorsement $25.00 ALTA Leasehold Loan Endorsement $25.00 ALTA Future Advance-Reverse Mortgage Endorsement $25.00 ALTA Subdivision Other Residential Endorsements not listed above $25.00 APPENDIX C SCHEDULE OF TITLE INSURANCE COMMERCIAL ENDORSEMENT FORMS ALTA U.S. Policy Date Down Endorsement $ Change Endorsement $ Date Down Endorsement $ ALTA 3-06 Zoning Endorsement - Vacant Land ALTA Zoning Endorsement Completed Structure Up to and including $1,000,000 of insurance coverage $.75/$1, Over $1,000,000 of insurance coverage $.15 to $.75/$1, ALTA 4-06 Condominium Endorsement $ ALTA 5-06 Planned Unit Development Endorsement $ ALTA 6-06 Variable Rate Mortgage Endorsement $ ALTA Environmental Protection Lien Endorsement (commercial loan policy only) $ ALTA Restrictions, Encroachments, Minerals Endorsement $ ALTA Leasehold Owner s Endorsement $ ALTA Leasehold Loan Endorsement $ ALTA Future Advance-Reverse Mortgage Endorsement $ ALTA Non-Imputation, Full Equity Endorsement(Owner) 11

14 ALTA Non-Imputation, Additional Insured Endorsement (Owner) ALTA Non-Imputation, Part. Equity Transfer Endorsement (Owner) ALTA First Loss Endorsement (Loan) ALTA Survey, Same As Endorsement $ ALTA Subdivision Endorsement Other Commercial Endorsements not listed above $