Bulletin: CO000022

Dear Associates:

It has been brought to our attention that not all issuing offices in Colorado are obtaining written closing instructions signed by all parties when closing a transaction. Title Insurance Regulation 3-5-1(VII)(G) states as follows: "No title entity shall provide closing and settlement services without receiving written instructions from all necessary parties". However, no official form for these closing instructions was promulgated by the Colorado Division of Insurance.

The Colorado Real Estate Commission created Rule F-17 for its Realtor licensees. Rule F-17 states as follows:

When it is appropriate for a broker to prepare closing instructions in connection with the closing of a real estate transaction, the broker shall use the form captioned "Closing Instructions" effective September 1, 1995.

A copy of the Real Estate Commission approved form is attached. Although the Real Estate Commission has recommended that its Realtor licensees have this form filled out and signed at the time the contract is entered into, as a title entity providing closing services we recommend that this form be completed and signed at the time of closing and the original be retained in your file. Concurrently, we are seeking clarification from the Colorado Division of Insurance as to the specific form of closing instructions required by Title Insurance Regulation 3-5-1(VII)(G) if different from that form contemplated in Rule F-17.

Your underwriting contract does not cover these matters. Therefore, you must make the final decision on the specific form of closing instructions to be collected at closing.