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MANUAL OF RATES AND CHARGES

 

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August 1, 1997

(Republished January 3, 2000)

Amended through March 3, 2003

 

 

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New Jersey Land Title Insurance Rating Bureau

 

Jos. M. Clayton, Jr., General Manager

Edward C. Eastman, Jr., Deputy Manager

100 Willowbrook Road, Building I

Freehold, New Jersey 07728

732 - 683 - 9660

Fax 732 - 462 - 8955

 

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Distributed by

Chicago Title Insurance Company

Ticor Title Insurance Company

Security Union Title Insurance Company

Iselin, New Jersey

Members of NJLTIRB

 

 

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This Manual contains the rates, fees and charges approved by the Commissioner of Banking &Insurance for all applications or orders for title insurance received on or after August 1, 1997, together with amendments through March 3, 2003.

 

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THIS MANUAL IS THE MANUAL OF RATES AND CHARGES OF THE NEW JERSEY LAND TITLE INSURANCE RATING BUREAU, AN UNINCORPORATED ASSOCIATION, OPERATING PURSUANT TO N.J.S.A. 17:46B-46 AS A TITLE INSURANCE RATING ORGANIZATION ON BEHALF OF ITS MEMBERS AND SUBSCRIBERS.  THE NEW JERSEY LAND TITLE INSURANCE RATING BUREAU IS DULY LICENSED BY THE COMMISSIONER OF BANKING AND INSURANCE AS A RATING ORGANIZATION.  THE RATES AND CHARGES FOR TITLE INSURANCE CONTAINED HEREIN HAVE BEEN APPROVED BY THE COMMISSIONER OF BANKING AND INSURANCE IN ACCORDANCE WITH THE TITLE INSURANCE ACT OF 1974, N.J.S.A. 17:46B-1 ET SEQ., AS AMENDED.  NO RATES OR CHARGES FOR TITLE INSURANCE MAY BE  MADE BY ANY MEMBER OF THE RATING BUREAU OR ITS AGENTS EXCEPT THOSE CONTAINED OR AUTHORIZED IN THIS MANUAL OR CONTAINED IN DEVIATION FILINGS MADE BY INDIVIDUAL MEMBER COMPANIES AND APPROVED BY THE COMMISSIONER OF BANKING AND INSURANCE.

 

THE CAPTIONS, HEADINGS, TITLES AND EXAMPLES APPEARING THROUGHOUT THIS MANUAL ARE INTENDED FOR INFORMATIONAL PURPOSES ONLY, AS A COURTESY TO THE READER(S) HEREOF.  THE SAME ARE NOT INTENDED TO CONSTITUTE A DEFINITIVE STATEMENT AS TO THE CONTENT OF EACH SECTION SO IDENTIFIED.  IN THE EVENT OF A CONFLICT BETWEEN THE CAPTION, HEADING, TITLE OR EXAMPLE AND THE ACTUAL TEXT OF A SECTION OR SECTIONS, THE LATTER SHALL CONTROL.

 

 

THE DESCRIPTIONS OF THE COVERAGE AFFORDED BY VARIOUS ENDORSEMENTS AND OTHER FORMS APPEARING THROUGHOUT THIS MANUAL ARE INTENDED FOR INFORMATIONAL PURPOSES ONLY, AND ARE NOT INTENDED TO CONSTITUTE A DEFINITIVE STATEMENT AS TO THE CONTENTS OF, OR COVERAGE AFFORDED BY, SUCH ENDORSEMENTS AND OTHER FORMS.  IN THE EVENT OF A CONFLICT BETWEEN THE DESCRIPTION FOUND IN THIS MANUAL AND THE ACTUAL TEXT OF AN ENDORSEMENT OR OTHER FORM, THE LATTER SHALL CONTROL.

 

 

 

 

 

 

MEMBERS OF THE

NEW JERSEY LAND TITLE INSURANCE RATING BUREAU

 

AMERICAN PIONEER TITLE INSURANCE COMPANY

CHICAGO TITLE INSURANCE COMPANY

COMMONWEALTH LAND TITLE INSURANCE COMPANY

COMMONWEALTH LAND TITLE INSURANCE CO. OF NJ

FIDELITY NATIONAL TITLE INSURANCE COMPANY OF N.Y.

FIRST AMERICAN TITLE INSURANCE COMPANY

INVESTORS TITLE INSURANCE COMPANY

LAWYERS TITLE INSURANCE CORPORATION

NATIONAL TITLE INSURANCE OF NEW YORK

NEW JERSEY TITLE INSURANCE COMPANY

OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY

SECURITY UNION TITLE INSURANCE COMPANY

STEWART TITLE GUARANTY COMPANY

THE SECURITY TITLE GUARANTEE CORPORATION OF BALT.

TICOR TITLE INSURANCE COMPANY

TRANSNATION TITLE INSURANCE COMPANY

UNITED GENERAL TITLE INSURANCE

 


TABLE OF CONTENTS

 

 

      1.      DEFINITIONS...........................................................................................        1

        

 

      2.      METHODS OF OPERATION..................................................................        4

 

 

      3.      GENERAL RULES..................................................................................        6

 

 

      4.      SCHEDULE OF RATES.........................................................................     14

 

 

      5.      EXAMINATION CHARGES.....................................................................     21

 

 

      6.      CLOSING OR SETTLEMENT CHARGES...........................................     24

 

 

      7.      MISCELLANEOUS CHARGES..............................................................     27

 

        

      8.      RESERVED FOR FUTURE USE..........................................................     29

 

 

      9.      GOVERNMENT OR CHARITABLE TRANSACTIONS........................     30

 

 

   10.      ENDORSEMENTS..................................................................................     32

 

APPENDIX B EXAMPLES

 

SECTION 3.2.1.......................................................................................................    A-1

SECTION 3.3.4.......................................................................................................    A-2

SECTION 3.4...........................................................................................................    A-3

SECTION 4.2...........................................................................................................    A-5

SECTION 4.3...........................................................................................................    A-6

SECTION 4.5...........................................................................................................    A-7

SECTION 4.6.1....................................................................................................... A-10

INDEX TO ENDORSEMENTS

 

ENDORSEMENT                                                                         SECTION                NJRB

 

ALTA 1 -        Streets or Other Municipal                                     10.14                    5-36

                       Assessments - NJ Modifications

 

ALTA 3 -        Zoning                                                                       10.20                    5-44

 

ALTA 3.1 -    Zoning - Completed Structures                            10.21                    5-45

 

ALTA 4.1 -    Condominium                                                            10.7                    5-28

 

ALTA 5.1 -    Planned Unit Development                                     10.8                    5-29

 

ALTA 6 -        Variable Rate Mortgage                                            10.2                    5-12

 

ALTA 6.1 -    Variable Rater Mortgage                                          10.1                    5-11

 

ALTA 6.2 -    Variable Rate Mortgage - Negative                        10.3                    5-13

                       Amortization   

 

ALTA 7 -        Manufactured Housing                                           10.39                    5-64

 

ALTA 8.1 -    Environmental Liens                                                 10.6                    5-17

 

ALTA 9 -        Restrictions, Encroachments & Minerals           10.10                    5-30

 

ALTA 9.1 -    Unimproved lands                                                  10.22                    5-62

 

ALTA 9.2 -    Improved Lands                                                      10.22                    5-63

 

ALTA 10 -     Assignment of Mortgage                                        10.16                    5-38

 

ALTA 10.1 -  Assignment of Mortgage - Continued                 10.17                    5-39

                     Priority                                                                                                      

 

ALTA 11 -     Mortgage Modification                                            10.37                    5-53

 

ALTA 12 -     Aggregation (Tie-in)                                                10.31                    5-56

 

ALTA 13 -    Leasehold                                                                  10.43                    5-67

 

ALTA 13.1 - Leasehold Loan                                                       10.43                    5-68

 

Arbitration Endorsement                                                              10.42                    5-18

 

Assignment of Mortgage - Updated Policy                                10.25                    5-48

 

Construction Loan Special Policy Endorsement                     10.38                    5-10

 

Convertible Adjustable Rate Mortgage                                        10.9                    5-23

 

Creditor=s Rights Exclusion - Owners                                      10.23                    5-46

 

Creditor=s Rights Exclusion - Loan                                           10.24                    5-47

 

Fairway Endorsement - Partnership                                          10.27                    5-51

 

Fairway Endorsement - LLC                                                        10.28                    5-52

                                                                             

FNMA Balloon Mortgage                                                               10.11                    5-31

 

Interest Rate Swap                                                                        10.34                    5-59

 

First Loss - Contingent Loss                                                       10.33                    5-58

 

Last Dollar - Application of Mortgage Payments                      10.32                    5-57

 

Modifiable Mortgage Option Endorsement                               10.40                    5-65

 

Non-Imputation                                                                              10.19                    5-43

 

Revolving Loan                                                                                 10.4                    5-21

 

Reverse Annuity Mortgage                                                           10.13                    5-33

 

Secondary Mortgage Market                                                        10.12                    5-32

 

Shared Appreciation                                                                      10.35                    5-60

 

Subdivision                                                                                     10.36                    5-61

 

Successors and Transferees Coverage Endorsement         10.41                    5-66

 

Survey Endorsement                                                                       10.5                    5-01

 

Survey Endorsement - Without Survey                                       10.15                    5-37

 

Mezzanine Financing Endorsement                                        10.44                 5-69

 

Going Concern Endorsement                                                  10.45                 5-70

 

             1         DEFINITIONS

 

1.1_           "Insured" is the party to whom coverage is extended by the terms of the policy.

 

         1.2         "Insurer" is a title insurance company which is a member or subscriber of the New Jersey Land Title Insurance Rating Bureau, which is a rating organization or bureau within the meaning of N.J.S.A. 17:46B-46.

                                                                                                                                                           

         1.3         "Approved Attorney" means an attorney-at-law admitted to practice in the State of New Jersey who is not an employee of a title insurance company or agent, who is approved by an insurer and upon whose examination of title and report thereon the insurer or agent may issue a policy of title insurance.

 

         1.4         "Title Insurance Agent" shall mean a person or entity as defined in N.J.S.A. 17:46B-1(i) and who  holds a valid license from the State of New Jersey and a contract with an Insurer to prepare and issue Commitments and Policies on its behalf.

 

         1.5         "Preliminary Certificate and Report of Title", "Interim Title Insurance Binder", "Interim Binder", or "Binder" is an approved attorney's preliminary certification of title, which has been duly countersigned by the insurer or agent and represents a commitment to issue a title insurance policy.  In no event shall such a binder be used as a substitute for a title insurance policy.

 

         1.6         "Commitment", as used herein, is the agreement of an insurer to issue its policy or policies of title insurance to a proposed insured, as owner or mortgagee of an estate or interest in the land described therein, all subject to the provisions set forth in the Schedules and Conditions and Stipulations of said commitment.  The commitment sets forth the requirements, including payment of premium and charges, that must be complied with prior to the issuance of the policy or policies.

 

         1.7         "Charges for Title Insurance", as used herein, are all the rates and charges as approved by the Commissioner of Banking and Insurance pursuant to N.J.S.A. 17:46B-41, et seq.

 

         1.8         "Examination Charge" is the charge made for the process of abstracting and searching or causing an abstract or search to be made of the appropriate public records for those matters affecting title to a specific parcel of land, examining the results thereof, and issuing a commitment to insure based on such title examination.

 

         1.9         "Underwriting Rate" is that charge made by an insurer or its agent for the liability undertaken under the policy and is based on the amount of insurance shown in the policy.

 

       1.10         "Settlement Charge" is that charge imposed by an insurer or its agent for attendance at a real estate closing and, when applicable, for making disbursements on behalf of the participants and recording the documents.

 

 

             2         METHODS OF OPERATION

 

         2.1         "Company or Agent Procedure":  Under this procedure the insurer or its agent examines the title and issues its commitment for insurance.  In some instances the insurer or agent may perform certain services relating to the closing or settlement.  The charges under this procedure shall consist of the applicable fees, charges and rates as contained herein and approved by the Commissioner of Banking and Insurance.

 

         2.2         "Approved Attorney Procedure":  Under this procedure the approved attorney certifies the title to the insurer or its agent on a preliminary report of title based upon the approved attorney's examination of title.  "Examination" for the purpose of this section is the process of abstracting and searching or causing an abstract or search to be made of the appropriate public records for those matters affecting title to a specific parcel of land, examining the results thereof, and reporting such results and conclusions to the insurer or its agent on a preliminary report of title.  The insurer or its agent in reliance upon such report may issue an interim binder and the approved attorney may conduct a settlement or closing based upon such report and interim binder.  Subsequently, the insurance policy shall be issued by the insurer or its agent based upon the approved attorney's final certificate of title.  In certain cases an approved attorney may submit only a final certificate of title to the insurer or its agent, and based upon such certificate the insurer or its agent may issue the title insurance policy.  The charge for insurance under this procedure shall be the underwriting rate based on the insurance liability assumed in the particular transaction and, when applicable, the other approved fees, rates and charges.

 

 

             3         GENERAL RULES

 

         3.1         OWNER'S INSURANCE - BASIS FOR CALCULATING UNDERWRITING RATES

 

      3.1.1         POLICY ISSUED AT THE TIME OF ACQUISITION OF PROPERTY

                        The underwriting rate for an owner's policy issued at the time of the acquisition of the property shall be based upon an amount not less than the full consideration, including the aggregate unpaid sum of any mortgage or other assumed liens.

 

      3.1.2         POLICY ISSUED AT A TIME OTHER THAN AT ACQUISITION OF TITLE

                        When an owner's policy is issued at a time other than at acquisition of title, the applicable underwriting rate shall be based upon  at least the then present fair market value of the property as established to the satisfaction of the insurer at the time the owner's policy is issued.

 

      3.1.3         CONVERSION OF ESTATE INSURED

(1)             When the insured under a loan policy acquires title to the land by foreclosure or by voluntary conveyance in extinguishment of the debt and the insured requests owner's title insurance, such insured or the designee for the benefit of such insured may be issued an owner's policy, and the rate shall be the applicable underwriting reissue rate up to the face amount of such former policy.  The underwriting rate for insurance in excess of the face amount of the former policy shall be determined by the applicable bracket of the basic underwriting  rate. (NOTE: The approved form of loan policy continues the protections contained therein, as a loan policy, in favor of any insured who acquired all or any part of the estate or interest in the land described in the policy by foreclosure,  conveyance in lieu of foreclosure, or other legal manner in discharge of the insured mortgage.)

(2)                 When the insured lessee, contract vendee or optionee acquires the fee estate and an owners policy of title insurance or endorsement is requested insuring the acquisition of the fee interest, the rate shall be the applicable underwriting reissue rate up to the face amount of such former policy.  The underwriting rate for insurance in excess of the face amount of the former policy shall be determined by the applicable bracket of the basic underwriting rate.

 

      3.1.4         RATES CALCULATED TO WHOLE DOLLARS

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