Bulletin: NY000611

The purpose of the bulletin is to advise our policy issuing offices of the availability of the TOEPP (TIRSA Owner’s Extended Protection Policy) and the suggested method of underwriting such a policy.  When compared to the 2006 ALTA owners policy, the TOEPP policy provides additional owner’s coverages on a 1-4 family residence where the insured owner is a natural person or a living trust established by a living person for estate purposes.

The premium is 120% of the owner’s rate. An overview of the various additional coverages are outlined below:

Covered Risk 14 (Subdivision Law Violation)

Because of a violation of a subdivision law or regulation existing at Policy Date affecting the Land:

• The insured is unable to obtain a building permit;
• The insured is forced to correct or remove the violation; or,
• Someone else has a legal right to, and does, refuse to perform a contract to purchase the Land, lease it or make a Mortgage loan on it

The deductible is $2,000.00 and the maximum dollar limit of liability is $10,000.00.

Covered Risk 15 (Building Permit):

The cost of the forced removal of the insured’s structures, or any part of them, other than boundary  walls or fences, as existing at Policy Date, because any portion was built without obtaining a building permit from the proper government office.

The deductible is $4,000.00 and the maximum dollar limit of liability is $25,000.00.

Covered Risk 16 (Zoning):

The cost of the forced removal of the insured’s structures, or any part of them, other than boundary walls or fences, as existing at Policy Date, because they violate an existing zoning law or zoning regulation.

The deductible is $4,000.00 and the maximum dollar limit of liability is $25,000.00.

Covered Risk 18 (Encroachment of boundary walls or fences)

The insured is forced to remove its structures, or any part of them, as existing at Policy Date, because they encroach onto your neighbor’s land.

The deductible is $1,500.00 and the maximum dollar limit of liability is $5,000.00.

Stewart requires the following items to be reviewed when issuing a TOEPP Policy:

• Customary review of title evidence required with the issuance of a 2006 ALTA policy.
  • Review of the certificate of occupancy as well as any municipal violation searches to determine if the property as set forth on the survey matches the property listed on the certificate of occupancy.
• Verify that the land is an improved residential 1-4 family lot or a residential condominium unit.
  • Tax search indicates the property is assessed as improved single family or condominium unit.
• Verify that the named insured is a natural person and not a commercial or legal organization or entity.  A natural person may also be a trustee of trust even if the trustee is not a natural person.
• Review of an up to date survey.  An older survey with an inspection can only be used if there are no changes to the structure and/or property lines.
  • Survey review shall include a verification that all improvements are within the record lines and setbacks with no encroachments of improvements or rights or ways/easements belonging to other property.
  • The improvements listed on the certificate of occupancy match the improvements set forth on the survey.
  • The survey shows actual vehicular and pedestrian access to a public road.
• Transaction is arm’s length for full contact price.  Short sales or foreclosure cannot be insured.

If you have any questions regarding this bulletin please contact Stewart Title Insurance Company Legal Services at 212-922-0050.