BLANK TITLE INSURANCE COMPANY
MORTGAGE FORECLOSURE GUARANTEE
AMOUNT OF INSURANCE: $10,000.00
GUARANTEE NO. ____________
TITLE NO. _________________
SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE LIMITS OF LIABILITY AND OTHER PROVISIONS OF THE CONDITIONS AND STIPULATIONS HERETO ANNEXED AND MADE A PART OF THIS GUARANTEE
BLANK TITLE INSURANCE COMPANY, a corporation, herein called the Company, GUARANTEES ______________ , herein called the Assured, against loss not exceeding the liability amount stated above which the Assured shall sustain by reasons of any incorrectness in the assurance which the Company hereby gives that, according to the public records, on the date stated below:
(1) Title to the land is vested of record in:
(2) The necessary parties defendant to foreclose the mortgage set forth in Schedule "B" are those set forth in Schedule "C".
(3) All liens or encumbrances affecting the land subsequent to the recording of the mortgage to be foreclosed, which are filed or recorded in those records in the County Clerk's Office, and in counties having a Register in the Register's Office, established by state statute for the purpose of imparting constructive notice of matters relating to real property to purchasers for value and without knowledge are listed in Schedule "D".
(4) The records of the taxing authority show that all taxes and assessments which are a lien against the land have been paid as of the date herein, except for those taxes and assessments which are shown as open on the Tax Search.
Annexed to this Guarantee are the following schedules:
Schedule A: Description of Mortgaged Land
Schedule B: Mortgage(s) to be foreclosed and any
consolidations, modifications and assignments thereof of record
Schedule C: Necessary Parties Defendant
Schedule D: Exceptions to title subsequent to the recording of the
mortgage to be foreclosed and other information
Schedule E: Tax Search
DATED: __________________
BLANK TITLE INSURANCE COMPANY
BY:_______________________
TIRSA MORTGAGE FORECLOSURE GUARANTEE (9/1/93)
MORTGAGE FORECLOSURE GUARANTEE
EXCLUSIONS, CONDITIONS, STIPULATIONS AND MISCELLANEOUS PROVISIONS
1. Definition of Terms
The following terms when used in this Guarantee mean:
(a) "land": the land described, specifically or by
reference, in the Guarantee and improvements affixed thereto
which by law constitute real property:
(b) "date": the effective date;
(c) "the Assured": the party or parties named as the
Assured in this Guarantee, or in a supplemental writing executed
by the Company:
(d) "mortgage": mortgage, deed of trust, trust deed, or
other security instrument.
(e) "necessary party defendant": Those persons or
entities who are necessary parties defendant pursuant to New York
State Real Property Actions and Proceedings Law, Section 1311,
except that searches have not been made for, and this Guarantee
does not cover, General Assignments, Orders Appointing Receivers,
and Petitions in Bankruptcy against judgment creditors and minor
lienors. Searches for Financing Statements under the Uniform
Commercial Code have been made only in the office of the
Recording Officer of the County in which the land is situated,
and only for those indexed against the land.
2. Exclusions from Coverage of This Guarantee
The Company assumes no liability for loss or damage by reason of
the following:
(a) Defects, liens, encumbrances, adverse claims against the
title or other matters (1) created, suffered, assumed or agreed
to by one or more of the Assured; or (2) resulting
(b) Taxes or assessments which are not shown as
existing liens by the records of any taxing authority that levies
taxes or assessments on real property, and taxes shown as paid on
the Tax Search which, subsequent to the date hereof, are
reinstated due to non-collection of funds or otherwise;
(c) Unpatented mining claims; reservations or exceptions in
patents or in Acts authorizing the issuance thereof; water
rights, claims or title to water, land under water; and land
lying in the bed of streets;
(d) Title to any property beyond the lines of the land expressly
described in Schedule A, or title to streets, roads, avenues,
lanes. ways or waterways on which such land abuts, or the right
to maintain therein vaults, tunnels, ramps or any other structure
or improvement; or any rights or easements therein;
(e) Any federal, state, or municipal lien or charge which may be
filed in an office of the federal government, state government,
or local municipal government, or any department, agency, or
division of them, other than the office of the taxing authority,
unless the lien or charge is also filed or recorded in the County
Clerk's office, and in counties having a Register, in the
Register's office;
(f) Any person or entity whose interest in the land may be
disclosed by an accurate survey of the land or by an inspection
of the premises;
(g) No searches for deaths of any necessary parties defendant
have been made, except as to those listed on Schedule
"C" as "Record Owner", and as to such
persons, searches have only been made in the office of the Clerk
of the Surrogate Court in which the land is located.
3. Prosecution of Actions
(a) The Company shall have the right to institute and prosecute
any action or proceeding or do any other act which, in its
opinion, may be necessary or desirable to establish or confirm
the matters herein guaranteed; and the Company may take any
appropriate action under the terms of this guarantee whether or
not it shall be liable thereunder and shall not thereby concede
liability or waive any provision hereof.
(b) In all cases where the Company does so institute and
prosecute any action or proceeding, the Assured shall permit the
Company to use, at its option, the name of the Assured for such
purpose. Whenever requested by the Company, the Assured shall
give the Company all reasonable aid in prosecuting such action or
proceeding, and the Company shall reimburse the Assured for any
expense so incurred.
4. Notice of Loss - Limitation of Action
A statement in writing of any loss or damage for which it is
claimed the Company is liable under this Guarantee shall be
furnished to the Company within sixty days after such loss or
damage shall have been determined, and no right shall accrue to
the Assured under this Guarantee until thirty days after such
statement shall have been furnished, and no recovery shall be had
by the Assured under this Guarantee unless action shall be
commenced thereon within two years after expiration of said
thirty day period. Failure to furnish such statement of loss or
damage or to commence such action within the time hereinbefore
specified, shall be a conclusive bar against maintenance by the
Assured of any action under this Guarantee.
5. Option to Pay, Settle or Compromise Claims
The Company shall have the option to pay or settle or compromise
for or in the name of the Assured any claim which could result in
loss to the Assured within the coverage of this Guarantee, or to
pay the full amount of this Guarantee or, if this Guarantee is
issued for the benefit of a holder of a mortgage, the Company
shall have the option to purchase the indebtedness secured by
said mortgage. Such purchase, payment or tender of payment of the
full amount of the guarantee shall terminate all liability of the
Company hereunder. In the event, after notice of claim has been
given to the Company by the Assured, the Company offers to
purchase said indebtedness, the owner of such indebtedness shall
transfer and assign said indebtedness and the mortgage securing
the same to the Company upon payment of the purchase price.
6. Limitation of Liability - Payment of Loss
(a) The liability of the Company under this Guarantee
shall be limited to the amount of actual loss sustained by the
Assured because of reliance upon the assurances herein set forth,
but in no event shall such liability exceed the amount of the
liability stated on the face page hereof,
(b) The Company will pay all costs imposed upon the Assured in
litigation carried on by the Company for the Assured, and all
costs and attorney's fees in litigation carried on by the Assured
with the written authorization of the Company, but in no event
shall such liability exceed the amount of liability stated on the
face page hereof.
(c) No claim for damages shall arise or be maintainable under
this Guarantee (1) if the Company after having received notice of
an alleged additional necessary party defendant, removes the
defect, lien or encumbrance on the land held by the additional
necessary party defendant within a reasonable time after receipt
of such notice, or (2) if the Company after having received
notice of an alleged additional necessary party defendant, takes
such steps that it deems proper for the purpose of perfecting the
title, whether by foreclosure, re-foreclosure, strict foreclosure
or otherwise, and in such action or actions to plead subrogation
whenever the Company deems it necessary, or (3) for liability
voluntarily assumed by the Assured in settling any claim or suit
without written consent of the Company.
(d) All payments under this Guarantee, including attorney's fees
as provided for in paragraph 6(b) hereof, shall reduce the amount
of the liability hereunder pro tanto, and no payment shall be
made without producing this Guarantee for endorsement of such
payment unless the Guarantee be lost or destroyed, in which case
proof of such loss or destruction shall be furnished to the
satisfaction of the Company.
(e) When liability has been definitely fixed in accordance with
the conditions of this Guarantee, the loss or damage shall be
payable within thirty days thereafter.
7. Subrogation Upon Payment or Settlement
Whenever the Company shall have settled a claim under this
Guarantee, all right of subrogation shall vest in the Company
unaffected by any act of the Assured, and the Company shall be
subrogated to and be entitled to all rights and remedies which
the Assured would have had against any person or property in
respect to such claim had this Guarantee not been issued. If the
payment does not cover the loss of the Assured, the Company shall
be subrogated to such rights and remedies in the proportion which
said payment bears to the amount of said loss. The Assured, if
requested by the Company, shall transfer to the Company all
rights and remedies against any person or property necessary in
order to perfect such right of subrogation, and shall permit the
Company to use the name of the Assured in any transaction or
litigation involving such rights or remedies.
8. Guarantee Entire Contract
Any action or actions or rights of action that the Assured may
have or may bring against the Company arising out of the subject
matter hereof must be based on the provisions of this Guarantee,
No provision or condition of this Guarantee can be waived or
changed except by a writing endorsed or attached hereto signed by
the President, or a Vice President of the Company.
9. Notices, Where Sent
All notices required to be given the Company and any statement in
writing required to be furnished the Company shall be addressed
to it at:
10. Failure to Disclose
This Guarantee shall be null and void if the Assured, it's
attorney or agent makes any untrue statement with respect to any
material fact or suppresses or fails to disclose any material
fact or if any untrue answers are given to the Company to
material inquiries before the issuance of this Guarantee.
11. Purpose of Guarantee
(a) This Guarantee is made for and accepted by the Assured upon
the express understanding that it is to be used only for the
foreclosure of the mortgage(s) described in Schedule
"B" or for the taking of a deed in lieu of foreclosure.
(b) If a deed in lieu of foreclosure is taken, the Company shall
not be liable should the deed be attacked by the grantor, his
successors or creditors, for inadequacy of consideration or as to
the capacity of the record owner to execute such a deed or for
any other reason.
11 Miscellaneous Provisions
(a) Other than for purposes of establishing the vested owner of
record of the land and for setting forth liens against a purchase
money mortgagor, no search for defects in title, liens,
restrictive covenants or any other encumbrance existing or
created prior to the date of the mortgage has been made.
(b) No report on streets or searches for violations in Municipal
or other governmental departments have been made; nor have
searches been made for corporation franchise taxes or license
fees, Federal and State inheritance, transfer or estate taxes.
Upon request, the Company will obtain a report from the State Tax
Commission on corporation franchise taxes and license fees upon
payment of an additional fee, but no responsibility for the
correctness of such reports will be assumed by the Company.
(c) The premium herein includes one continuation of title, which
shall be done solely for the purpose of establishing additional
necessary parties defendant. The tax search shall not be updated
except for an additional charge.