Bulletin: MD2012006

Dear Associates:

This Bulletin is being issued to remind all Maryland issuing agents that under Maryland Annotated Code, Insurance Article, Section 22-102, there is a requirement to issue a Statutory Notice to Buyer form for ALL residential real estate transactions involving a purchase money mortgage or deed of trust. We suggest that you utilize this form for both purchase and refinance transactions. You must maintain an original, signed statement of receipt for at least three years.

This document must contain the following:

(i) the name of each insured under the policy;

(ii) the face amount of the policy;

(iii) the buyer's right and opportunity to obtain simultaneous title insurance in the buyer's favor;

(iv) the additional premium that will be required for purchase of simultaneous title insurance in the buyer's favor;

(v) that the buyer's title insurance will be subject only to the contingencies and conditions contained in the binder, title report, and policy;

(vi) the buyer's right to review a sample of the form of policy in which the contingencies and conditions will be inserted; and

(vii) a clear statement of the contingencies that must be satisfied to make the buyer's policy effective, if the buyer's policy is not effective on payment of the premium.

Attached is a sample form for use in order to comply with this law.

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.