THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.
Bulletin: NJ000020
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Bulletin: NJ000020
Dear Associates:
This Bulletin will supplement Underwriting Bulletin No. NJ000010 issued April 25, 1995. Enclosed is a copy of the Supreme Court of New Jersey, Administrative Determinations Relating to the 1995 Report of the Civil Practice subcommittee on UPLC Opinion 26, dated October 16, 1996 ("Administrative Determinations"). As noted therein, the Court asked its Civil Practice Committee to recommend practical methods for carrying out Opinion 26. The Civil Practice Committee established a subcommittee. The enclosed Administrative Determinations is the Supreme Court's response to a number of issues raised by the subcommittee.
The Supreme Court replaced the interim Notice appended to Opinion 26 with the following Notice which is captioned, "TO BUYER AND SELLER READ THIS NOTICE BEFORE SIGNING THE CONTRACT," a copy of which is attached hereto as Exhibit A. Exhibit A is the new form of Notice.
As stated in Underwriting Bulletin No. NJ000010, it is strongly suggested that the title officer document the settlement file by having the parties sign an acknowledgment of receipt of the Notice. The acknowledgment of receipt should be added to the bottom of the Notice in a form similar to that attached hereto as Exhibit B. Exhibit B is the new form of Notice with the acknowledgment of receipt language added.
At the time of Bulletin No. NJ000010, it was unclear how to proceed in the event it was discovered at the settlement that the Notice had not been given. This question is addressed at issue No. 3 on page 5 of the Administrative Determinations. The subcommittee asked, "Can non-compliance with Opinion 26 be cured prior to closing?" The Court's response is as follows: "The Court is satisfied that non-compliance in the requirements of In Re Opinion 26 can and should be cured between the contract and the closing. Written confirmation of the cure would appear to be a reasonable measure."
In the event it is determined prior to closing that the Notice had not been given as required by Opinion 26, we suggest that the settlement agent have the Buyer and Seller sign and date a confirmation of the cure which should be added to the Notice. A suggested form of written confirmation to cure is attached hereto as Exhibit C. Exhibit C is the new form of Notice with the confirmation to cure language added.
EXHIBIT A
TO BUYER AND SELLER
READ THIS NOTICE BEFORE SIGNING THE CONTRACT
The law requires real estate brokers to give you the following information before you sign this contract. It requires us to tell you that you must read all of it before you sign. The purpose is to help you in this purchase or sale.
1) As a real estate broker, I represent the seller, not the buyer. The title company does not represent either the seller or the buyer.
2) You will not get any legal advise unless you have your own lawyer. Neither I nor anyone from the title company can give legal advice to either the buyer or the seller. If you do not hire a lawyer, no one will represent you in legal matters now or at the closing. Neither I nor the title company will represent you in those matters.
3) The contract is the most important part of the transaction. It determines your rights, risks, and obligations. Signing the contract is a big step. A lawyer would review the contract, help you to understand it, and to negotiate its terms.
4) The contract becomes final and binding unless your lawyer cancels it within the following three business days. If you do not have a lawyer, you cannot change or cancel the contract unless the other party agrees. neither can the real estate broker nor the title insurance company change the contract.
5) Another important service of a lawyer is to order a survey, title report, or other important reports. The lawyer will review them and help to resolve any questions that may arise about the ownership and condition of the property. These reports and survey can cost you a lot of money. A lawyer will also prepare the documents needed to close title and represent you at the closing.
6) A buyer without a lawyer runs special risks. Only a lawyer can advise a buyer about what to do if problems arise concerning the purchase of this property. The problems may be about the seller's title, the size and shape of the property, or other matters that may affect the value of the property. If either the broker or the title company knows about the problems, they should tell you. But they may not recognize the problem, see it from your point of view, or know what to do. ordinarily, the broker and the title company have an interest in seeing that the sale is completed, because only then do they usually receive their commissions. So, their interests may differ from yours.
7) Whether you retain a lawyer is up to you. It is your decision. The purpose of this notice is to make sure that you have the information needed to make your decision.
Date________________________ Buyer(s)______________________________
Date________________________ Seller(s)______________________________
Date________________________ Selling Broker__________________________
Notice required by the New Jersey Supreme Court by its Administrative Determinations Relating to the 1995 Report of the Civil Practice Subcommittee on UPLC Opinion 26, dated October 16, 1996.
EXHIBIT B
TO BUYER AND SELLER
READ THIS NOTICE BEFORE SIGNING THE CONTRACT
The law requires real estate brokers to give you the following information before you sign this contract. It requires us to tell you that you must read all of it before you sign. The purpose is to help you in this purchase or sale.
1) As a real estate broker, I represent the seller, not the buyer. The title company does not represent either the seller or the buyer.
2) You will not get any legal advise unless you have your own lawyer. Neither I nor anyone from the title company can give legal advice to either the buyer or the seller. If you do not hire a lawyer, no one will represent you in legal matters now or at the closing. Neither I nor the title company will represent you in those matters.
3) The contract is the most important part of the transaction. It determines your rights, risks, and obligations. Signing the contract is a big step. A lawyer would review the contract, help you to understand it, and to negotiate its terms.
4) The contract becomes final and binding unless your lawyer cancels it within the following three business days. If you do not have a lawyer, you cannot change or cancel the contract unless the other party agrees. neither can the real estate broker nor the title insurance company change the contract.
5) Another important service of a lawyer is to order a survey, title report, or other important reports. The lawyer will review them and help to resolve any questions that may arise about the ownership and condition of the property. These reports and survey can cost you a lot of money. A lawyer will also prepare the documents needed to close title and represent you at the closing.
6) A buyer without a lawyer runs special risks. Only a lawyer can advise a buyer about what to do if problems arise concerning the purchase of this property. The problems may be about the seller's title, the size and shape of the property, or other matters that may affect the value of the property. If either the broker or the title company knows about the problems, they should tell you. But they may not recognize the problem, see it from your point of view, or know what to do. Ordinarily, the broker and the title company have an interest in seeing that the sale is completed, because only then do they usually receive their commissions. So, their interests may differ from yours.
7) Whether you retain a lawyer is up to you. It is your decision. The purpose of this notice is to make sure that you have the information needed to make your decision.
Acknowledgment of Receipt of Notice
To:_______________________________________(Agent's Name)
Re: Title No.
Property Address:
This will acknowledge that a written copy of the above notice (or one substantially similar) was attached as the cover page of the contract of sale in this transaction and received by me prior to my signing the contract of sale. Further I was advised by the realtor to read it before signing the contract of sale.
Date________________________ Buyer(s)______________________________
Date________________________ Seller(s)______________________________
Date________________________ Selling Broker__________________________
EXHIBIT C
Property Address:
TO BUYER AND SELLER
READ THIS NOTICE BEFORE SIGNING THE CONTRACT
The law requires real estate brokers to give you the following information before you sign this contract. It requires us to tell you that you must read all of it before you sign. The purpose is to help you in this purchase or sale.
1) As a real estate broker, I represent the seller, not the buyer. The title company does not represent either the seller or the buyer.
2) You will not get any legal advise unless you have your own lawyer. Neither I nor anyone from the title company can give legal advice to either the buyer or the seller. If you do not hire a lawyer, no one will represent you in legal matters now or at the closing. Neither I nor the title company will represent you in those matters.
3) The contract is the most important part of the transaction. It determines your rights, risks, and obligations. Signing the contract is a big step. A lawyer would review the contract, help you to understand it, and to negotiate its terms.
4) The contract becomes final and binding unless your lawyer cancels it within the following three business days. If you do not have a lawyer, you cannot change or cancel the contract unless the other party agrees. neither can the real estate broker nor the title insurance company change the contract.
5) Another important service of a lawyer is to order a survey, title report, or other important reports. The lawyer will review them and help to resolve any questions that may arise about the ownership and condition of the property. These reports and survey can cost you a lot of money. A lawyer will also prepare the documents needed to close title and represent you at the closing.
6) A buyer without a lawyer runs special risks. Only a lawyer can advise a buyer about what to do if problems arise concerning the purchase of this property. The problems may be about the seller's title, the size and shape of the property, or other matters that may affect the value of the property. If either the broker or the title company knows about the problems, they should tell you. But they may not recognize the problem, see it from your point of view, or know what to do. ordinarily, the broker and the title company have an interest in seeing that the sale is completed, because only then do they usually receive their commissions. So, their interests may differ from yours.
7) Whether you retain a lawyer is up to you. It is your decision. The purpose of this notice is to make sure that you have the information needed to make your decision.
A written copy of the above Notice to Buyer and Seller (or one substantially similar) was not attached as the cover page of the contract of sale in this transaction and received by me prior to my signing the contract of sale. However, I have now read the above Notice and fully understand all of the rights and dangers expressed in this Notice and wish to proceed with this transaction.
Date________________________ Buyer(s)______________________________
Date________________________ Seller(s)______________________________
Date________________________ Selling Broker__________________________
References
- Bulletins Replaced:
- None
- Related Bulletins:
- Underwriting Manual:
- None
- Exceptions Manual:
- None
- Forms:
- None