Attachment_1_Statement_of_Work_Specifications.pdf

Attachment 1

AG-2B46-S-16-0018

Title and Closing Agent Specifications/Statement of Work

A. OBJECTIVE:

The objective of this Blanket Purchase Agreement (BPA) is to obtain closing services for acquisition of easements on behalf of the United States of America (USDA), by and through the Secretary of Agriculture, pursuant to Title XII of the Food Security Act of 1985, as amended, 16 U.S.C. 3837.

B. BACKGROUND:

Natural Resources Conservation Service’s (NRCS) easement programs authorize the acquisition of easement rights from willing landowners. NRCS is the lead agency within the USDA charged with administering the Wetland Reserve Program (WRP), Grassland Reserve Program (GRP), Healthy Forest Reserve Program (HFRP), Emergency Watershed Protection Program – Floodplain Easement (EWPP-FPE), and Agricultural Conservation Easement Program (ACEP).

C. SCOPE:

The contractor shall furnish all closing services, including obtaining title insurance from the title insurance company approved by the United States Attorney General. The contractor will perform the same services as in a commercial transaction, including obtaining and recording deeds, and any necessary curative instruments to assure merchantable, insurable title to the easement area in the name of the United States of America, by and through the Secretary of Agriculture.

The closing services will be performed at the NRCS Georgia State Office unless the contractor, NRCS, and landowner agree to a different location. NRCS may provide closing instructions to the contractor to perform those duties at a location other than the NRCS Georgia State Office.

The contractor must coordinate and facilitate the following services:

1. Obtaining and updating chain of title, including copies of all instruments that created rights, interests, or encumbrances on the property.

2. Providing preliminary title commitments and issuing final title insurance policies.

3. Working with landowners to clear exceptions on title to the property.

4. Obtaining signatures on subordination agreements and limited lien waivers.

5. Obtaining signatures on Warranty Easement Deeds.

6. Other services, as necessary, to finalize the easement transaction.

D. STANDARDS AND RESPONSIBILITIES:

The contractor is responsible for having current knowledge of the requirements of Georgia State Law in connection with closing real estate transactions and title clearance. The title insurance company must comply with all Georgia State Laws, including title insurance reserves retirements. The contractor must be an approved closing agent in the State of Georgia.

The contractor must acknowledge that it will comply with all of the requirements set forth in Exhibit A hereto, "Closing Agent Requirements."

The contractor will provide evidence of at least $1 million in liability insurance coverage for errors and omissions and fidelity coverage in the amount of the government's purchase price for the easement on each individual who has access to the funds, or provide information from the title insurance company for which the contractor will close the transaction(s) to the satisfaction forces or provide reimbursement to NRCS for any loss caused by fraud or dishonesty or failure by the attorneys, agents, or employees of the contractor to comply with NRCS's written closing instructions. The ALTA Closing Protection Letter Revised 4/2/2014 is satisfactory to meet this condition of responsibility.

E. CONFLICT OF INTEREST:

A contractor cannot close on an easement purchase for a spouse, children, partners or business associates nor have a financial interest in the real estate to be covered by the proposed easement.

F. DESCRIPTION OF SERVICES TO BE PROVIDED BY THE CONTRACTOR:

The contractor must conduct a title search and obtain the following:

1. Copies of all instruments that created rights, interests, or encumbrances on the proposed easement property.

2. A chain of title, including all deeds referenced in the chain of title.

3. Preliminary title commitment, which must cover both the easement area and access for ingress and egress, and must commit to issuing the final title policy to the “United States of America” on the ALTA U.S. Policy Form 9-28-91, Revised 1-3-2012.

The title search will be for a sufficient period of time for the title company to insure the title without objectionable exceptions, and will determine all owners of record, outstanding mortgages, liens, judgments or pending suits, outstanding tax, claims, easements or rights-of-way of any type, whether oil, gas, and mineral interests have been severed, and any other exceptions that may cloud the title of the easement to be purchased.

Title search services must be provided within 15 business days of receiving the request from NRCS. The contractor will be provided with the name and address of the landowner, proposed easement map, Georgia Department of Assessment and Taxation Real Property Data Search Report and a copy of the deed.

The contractor will forward the Preliminary Commitment of Title Insurance, with attachments and references, to the appropriate Program Manager. The contractor will submit an invoice for the Preliminary Title Work submitted electronically through the U.S. Department of the Treasury’s Invoice Payment Platform System (IPP) website (https://www.ipp.gov).

The final policy should be issued to "United States of America" using the ALTA U.S. Policy Form 9-28-91, Revised 12-3-2012. The amount of owners' coverage should be listed as "To be determined" on the Preliminary Title Commitment and in the amount stated on the Warranty Easement Deed on the final title policy. The type of ownership should read "Warranty Easement". Landowners should include those owning the easement area property and those owning property providing ingress/egress.

The Contractor will be required to obtain the execution and recordation, as needed, of such items as: Warranty Easement Deed, other deeds, releases, full or partial satisfaction of mortgages, subordination's, lien waivers, affidavits of material liens and child support, and various types of releases of encumbrances of the property.

Upon receipt of the required documents, and incorporating an easement plat along with legal description prepared by a registered Georgia surveyor, NRCS will obtain from the Office of General Counsel (OGC) a Preliminary Title Opinion (PTO) that will set out any exceptions to the title. OGC will determine which exceptions are acceptable and which exceptions must be cured.

https://www.ipp.gov/

The contractor is required to close within 15 business days after receipt of the PTO and closing instructions letter from NRCS. The contractor will not close any transaction or record deeds or other instruments prior to receiving the PTO and closing instructions letter.

At the time of closing, the Contractor will do a title search update to make certain that there have been no changes in the status of the title since issuance of the Preliminary Commitment to Title Insurance, perform normal commercial closing procedures, and obtain recordation of all instruments necessary to provide satisfactory insurable title in the name of the United States of America. The Contractor will furnish a Final Title Policy in an insured amount that is the same as the consideration paid for the wetland easement. The Final Title Policy shall be on ALTA U.S. Policy Form 9-28-91, Revised 1-3-2012 and will be issued by a title insurance company that is on the Attorney General's approved list.

The Contractor will close the transaction, record the deeds and other instruments as necessary and insure that the following has occurred:

1. No new encumbrances have been recorded against the subject property since the date of the title commitment.

2. Receipt, execution, and recordation of the Warranty Easement Deed from the landowner.

3. Delivery of the policy of title insurance referred to below.

4. All exceptions required to be removed, released, subordinated, waived, or otherwise handled as set forth in the Preliminary Title Opinion from the Office of General Counsel have been completed and the applicable documents recorded.

5. All taxes, assessments, etc., are paid to the date that the Warranty Easement Deed is recorded.

6. Comply with any listed title commitment or binder requirements.

If any new encumbrances have been recorded against the subject property since the date of the title commitment, the Contractor will notify the Program Manager and will not proceed until further instructions are received.

Upon completion of the closing, the Contractor will send to NRCS the ALTA U.S. Policy Form 9-28-91, Revised 1-3- 2012 naming the United States of America as the insured, in the amount of the purchase price as of the date and time of recording of the Warranty Easement Deed to the United States of America. The policy of title insurance will be free and clear of any and all encumbrances (exceptions) to the title except those shown as acceptable in the OGC Preliminary Title Opinion. At the time of closing, the Contractor will provide a Settlement Statement to the landowner in a form similar to HOD-I (8-87) RESPA, HB 4305.2.

The Contractor will deliver the following to the Program Manager within ten (10) business days following closing:

1. The billing covering the closing costs, cost of the title insurance policy, and recording fees.

2. Policy of title insurance (original and one copy).

3. The original recorded copy and one copy of the Warranty Easement Deed to the United States of

America.

4. The original of the settlement statement.

5. Certified copies of any title clearance documents showing the recordation date.

Upon receipt of the final documents, NRCS will obtain a Final Title Opinion (FTO) from the OGC.

G. DELIVERY

All Preliminary Title Insurance Commitments must be delivered within 30 business days of request.

All easements must be recorded within 60 calendar days of receiving the OGC Preliminary Title Opinion and closing instructions from NRCS.

H. PAYMENT

The Contractor will bill NRCS directly for all closing costs. The Contractor will provide a separate billing for Preliminary Title Work (Closing Bill #1), and Closing Services (Closing Bill #2).The Contractor will be paid a flat fee for services rendered which is inclusive of all travel expenses, copy costs, telephone charges, and like charges.

At least 15 business days before closing, the contractor will provide the Program Manager an estimate of the recordation expenses and title insurance premiums for each easement. After closing, the Contractor will request reimbursement for all court recordation expenses and title insurance premiums by providing a separate billing for Recording Fees (Closing Bill #3) and Title Insurance Premiums (Closing Bill #4).

I. AUTHORITY

Only the NRCS w a r r a n t e d contracting officers may place orders under this BPA. Any modifications or questions may be directed to the originating contracting officer.

J. WORK LOCATIONS IN GEORGIA

Work locations can include any of Georgia’s 159 counties.