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: NV000004
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Bulletin: NV000004
Dear Associates:
Please be advised that an Indemnity Agreement is required from the borrowers on all Construction Loan transactions, in order to issue ALTA policies or may be requested by a lender. This is necessary due to the recent amendments to section 18.2214 of the Nevada Revised Statutes provide that "any person who performs services as an architect, engineer, land surveyor or geologist, in relation to the improvement, property or work of improvement, shall be defined as a Lien Claimant."
As has always been the case in Nevada, if a defined "Lien Claimant" has started work on the project prior to recordation of the mortgage or encumbrance securing financing, then ALL of the "Lien Claimants" who work on the property have established priority over the encumbrance which we have insured. In the past we have relied upon inspections to determine no loss of priority on the site. However, an inspection will not disclose the performance of services by an architect or engineer, and, therefore, we require and approved Indemnity Agreement from the borrowers in order to insure a Construction Loan.
A duplication of the subject Nevada Revised Statutes is included with this memo for your reference.
NRS 108.2214 "Lien claimant" defined.
"Lien claimant" means any person who provides work, material or equipment with a value of $500 or more to be used in or for the construction, alteration or repair of any improvement, property or work of improvement. The term includes, without limitation, every artisan, builder, contractor, laborer, lessor or renter of equipment, materialman, miner, subcontractor or other person who provides work, material or equipment, and any person who performs services as an architect, engineer, land surveyor or geologist, in relation to the improvement, property or work of improvement.
(Added to NRS by 2003, 2588)
NRS 108.225 Priority of liens.
1. The liens provided for in NRS 108.221 to 108.246, inclusive, are preferred to:
(a) Any lien, mortgage or other encumbrance which may have attached to the property after the commencement of construction of a work of improvement.
(b) Any lien, mortgage or other encumbrance of which the lien claimant had no notice and which was unrecorded against the property at the commencement of construction of a work of improvement.2. Every mortgage or encumbrance imposed upon, or conveyance made of, property affected by the liens provided for in NRS 108.221 to 108.246, inclusive, after the commencement of construction of a work of improvement are subordinate and subject to the liens provided for in NRS 108.221 to 108.246, inclusive, regardless of the date of recording the notices of liens.
(Added to NRS by 1965, 1160; A 1993, 2056; 1995, 1506; 2003, 2596)
References
- Bulletins Replaced:
- None
- Related Bulletins:
- Underwriting Manual:
- Exceptions Manual:
- None
- Forms:
- None