NJ Manual of Rates and Charges 9.1.19.pdf

NEW JERSEY LAND TITLE INSURANCE RATING BUREAU

MANUAL OF RATES AND CHARGES

Monmouth Executive Center 100 Willow Brook Road

Suite 100 Freehold, NJ 07728

732/683-9660 Fax 732/462-3340

EFFECTIVE DATE

This Rate Manual contains the rates, fees and charges approved by the Commissioner of Banking and Insurance for all applications or orders for title insurance received on or after September 1, 2019.

NEW JERSEY LAND TITLE

INSURANCE RATING BUREAU

September 1, 2019 2014 i

THIS MANUAL IS THE MANUAL OF RATES AND CHARGES OF THE NEW JERSEY

LAND TITLE INSURANCE RATING BUREAU, AN UNINCORPORATED

ASSOCIATION, OPERATING PURSUANT TO N.J.S.A. 17:46B-46 AS A TITLE

INSURANCE RATING ORGANIZATION ON BEHALF OF ITS MEMBERS AND

SUBSCRIBERS. THE NEW JERSEY LAND TITLE INSURANCE RATING BUREAU IS

DULY LICENSED BY THE COMMISSIONER OF BANKING AND INSURANCE AS A

RATING ORGANIZATION. THE RATES AND CHARGES FOR TITLE INSURANCE

CONTAINED HEREIN HAVE BEEN APPROVED BY THE COMMISSIONER OF

BANKING AND INSURANCE IN ACCORDANCE WITH THE TITLE INSURANCE ACT

OF 1974, N.J.S.A. 17:46B-1 ET SEQ., AS AMENDED. NO RATES OR CHARGES FOR

TITLE INSURANCE MAY BE MADE BY ANY MEMBER OF THE RATING BUREAU OR

ITS AGENTS EXCEPT THOSE CONTAINED OR AUTHORIZED IN THIS MANUAL OR

CONTAINED IN DEVIATION FILINGS MADE BY INDIVIDUAL MEMBER COMPANIES

AND APPROVED BY THE COMMISSIONER OF BANKING AND INSURANCE.

THE CAPTIONS, HEADINGS, TITLES AND EXAMPLES APPEARING THROUGHOUT

THIS MANUAL ARE INTENDED FOR INFORMATIONAL PURPOSES ONLY, AS A

COURTESY TO THE READER(S) HEREOF. THE SAME ARE NOT INTENDED TO

CONSTITUTE A DEFINITIVE STATEMENT AS TO THE CONTENT OF EACH ARTICLE

OR SECTION SO IDENTIFIED. IN THE EVENT OF A CONFLICT BETWEEN THE

CAPTION, HEADING, TITLE OR EXAMPLE AND THE ACTUAL TEXT OF A SECTION

OR SECTIONS, THE LATTER SHALL CONTROL.

THE DESCRIPTIONS OF THE COVERAGE AFFORDED BY VARIOUS

ENDORSEMENTS AND OTHER FORMS APPEARING THROUGHOUT THIS MANUAL

ARE INTENDED FOR INFORMATIONAL PURPOSES ONLY, AND ARE NOT

INTENDED TO CONSTITUTE A DEFINITIVE STATEMENT AS TO THE CONTENTS

OF, OR COVERAGE AFFORDED BY, SUCH ENDORSEMENTS AND OTHER FORMS.

IN THE EVENT OF A CONFLICT BETWEEN THE DESCRIPTION FOUND IN THIS

MANUAL AND THE ACTUAL TEXT OF AN ENDORSEMENT OR OTHER FORM, THE

LATTER SHALL CONTROL.

NOTHING CONTAINED HEREIN SHALL BE CONSTRUED TO PREVENT THE

DISCLOSURE, DISTRIBUTION OR ALLOCATION OF RATES AND CHARGES

APPLICABLE TO GIVEN TRANSACTION (OR SERIES OR TRANSACTIONS), OR THE

WORDING USED TO IDENTIFY OR DESCRIBE SAME, IN A MANNER WHICH

CONFORMS WITH FEDERAL, STATE OR LOCAL LAWS, RULES OR REGULATIONS

RELATING TO REAL ESTATE SETTLEMENT OR CLOSING PRACTICES,

TRUTH-IN-LENDING, CONSUMER PROTECTION OR THE LIKE, PROVIDED THAT

THE RATES AND CHARGES SO DISCLOSED, DISTRIBUTED OR ALLOCATED,

WHEN TAKEN AS A WHOLE, AND REGARDLESS OF HOW IDENTIFIED OR

DESCRIBED, ARE NOT INCONSISTENT WITH THE PROVISIONS OF THIS MANUAL.

September 1, 2019 2014 ii

MEMBERS OF THE

NEW JERSEY LAND TITLE INSURANCE RATING BUREAU

AMERICAN GUARANTY TITLE INSURANCE COMPANY

AMROCK TITLE INSURANCE COMPANY

AMTRUST TITLE INSURANCE COMPANY

CATIC TITLE INSURANCE COMPANY

CHICAGO TITLE INSURANCE COMPANY

COMMONWEALTH LAND TITLE INSURANCE COMPANY

CONESTOGA TITLE INSURANCE COMPANY

FIDELITY NATIONAL TITLE INSURANCE COMPANY

FIRST AMERICAN TITLE INSURANCE COMPANY

INVESTORS TITLE INSURANCE COMPANY

NATIONAL TITLE INSURANCE OF NEW YORK

NORTH AMERICAN TITLE INSURANCE COMPANY

OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY

STEWART TITLE GUARANTY COMPANY

THE SECURITY TITLE GUARANTEE CORPORATION OF BALT.

TITLE RESOURCES GUARANTY COMPANY

WESTCOR LAND TITLE INSURANCE COMPANY

WFG NATIONAL TITLE INSURANCE COMPANY

INSURANCE RATING BUREAU iii September 1, 2019

TABLE OF CONTENTS

ARTICLE

1. DEFINITIONS ....................................................................................... Page 1 -1

2. METHODS OF OPERATION ................................................................ Page 2 -1

3. GENERAL RULES ................................................................................ Page 3 -1

4. SCHEDULE OF RATES ....................................................................... Page 4 -1

5. EXAMINATION AND SEARCH CHARGES ........................................... Page 5-1

6. SETTLEMENT CHARGES ................................................................... Page 6 -1

7. MISCELLANEOUS CHARGES ............................................................. Page 7 -1

8. RESERVED FOR FUTURE USE .......................................................... Page 8 -1

9. GOVERNMENT OR CHARITABLE TRANSACTIONS ......................... Page 9 -1

10. ENDORSEMENTS.............................................................................. Page 10 -1

Note: The page numbers are tied to the Article numbers described herein, i.e.

Definitions, being Article 1, are numbered 1-xx, Methods of Operation, being Article 2, are numbered 2-xx, etc. Each paragraph contained within an Article shall be defined as a Section, i.e. Article 1, Section 1.1, etc.

INSURANCE RATING BUREAU iv September 1, 2019

APPENDIX - EXAMPLES

SECTION 3.2.1 ............................................................................................ A-1

SECTION 3.4 ............................................................................................... A-2

SECTION 4.2 ............................................................................................... A-4

SECTION 4.5 ............................................................................................... A-5

SECTION 4.6.1 ............................................................................................ A-8

SECTION 6.2.3. ........................................................................................... A-9

SECTIONS 10.74 & 10.75 ............................................................................ A-10

INSURANCE RATING BUREAU v September 1, 2019

INDEX TO ENDORSEMENTS

ENDORSEMENT SECTION NJRB

ALTA 1-06 Street Assessments 10.14 5-86

ALTA 3-06 Zoning 10.20 5-87

ALTA 3.1-06 Zoning - Completed Structures 10.21 5-88

ALTA 3.2-06 Zoning - Land Under Development 10.76 5-137

ALTA 3.3-06 Zoning – Completed Improvement - 10.107 5-179 Non-Conforming Use (New Jersey Variation)

ALTA 4.1-06 Condominium 10.7 5-89

ALTA 5.1-06 Planned Unit Development 10.8 5-90

ALTA 6-06 Variable Rate Mortgage 10.2 5-91

ALTA 6.1 Variable Rate Mortgage-Regulations 10.1 5-11

ALTA 6.2-06 Variable Rate Mortgage - Negative 10.3 5-92 Amortization

ALTA 7-06 Manufactured Housing Unit 10.39 5-93

ALTA 8.1-06 Environmental Protection Lien 10.6 5-94 (New Jersey Variation)

ALTA 8.2-06 Commercial Environmental Protection 10.98 5-165 Lien (New Jersey Variation)

ALTA 9.1-06 Covenants, Conditions and Restrictions, 10.22 5-96

Owner’s Policy - Unimproved Land (New Jersey Variation)

ALTA 9.2-06 Covenants, Conditions and Restrictions, 10.22 5-97

Owner’s Policy - Improved Land

ALTA 9.3-06 Covenants, Conditions and Restrictions, 10.10 5-98

Loan Policy (New Jersey Variation)

INSURANCE RATING BUREAU vi September 1, 2019

ENDORSEMENT SECTION NJRB

ALTA 9.6.1-06 Private Rights - Current Assessments 10.10 5-169 Loan Policy (New Jersey Variation)

ALTA 9.7-06 Restrictions, Encroachments, Minerals - 10.10 5-139

Land Under Development - Loan Policy

ALTA 9.8-06 Covenants, Conditions and Restrictions - 10.22 5-140

Land Under Development – Owner’s Policy (New Jersey Variation)

ALTA 9.9-06 Private Rights - Owner’s Policy 10.22 5-156

ALTA 9.10-06 Restrictions, Encroachments, 10.10 5-157 Minerals - Current Violations - Loan Policy (New Jersey Variation)

ALTA 10-06 Assignment of Mortgage 10.16 5-101

ALTA 10.1-06 Assignment and Date Down 10.17 5-102

ALTA 11-06 Mortgage Modification 10.37 5-103

ALTA 11.1-06 Mortgage Modification with 10.37 5-174 Subordination

ALTA 11.2-06 Mortgage Modification with 10.37 5-175 Additional Amount of Insurance

ALTA 12-06 Aggregation 10.31 5-104

ALTA 12.1-06 Aggregation - State Limits - Loan 10.91 5-158

ALTA 13-06 Leasehold – Owner’s 10.43 5-105

ALTA 13.1-06 Leasehold - Loan 10.43 5-106

ALTA 14-06 Future Advance - Priority 10.46 5-107

ALTA 14.1-06 Future Advance - Knowledge 10.47 5-108

ALTA 14.2-06 Future Advance - Letter of Credit 10.48 5-109

ALTA 14.3-06 Future Advance - Reverse Mortgage 10.49 5-110

INSURANCE RATING BUREAU vii September 1, 2019

ALTA 15-06 Nonimputation - Full Equity Transfer 10.50 5-111

ALTA 15.1-06 Nonimputation - Additional Insured 10.51 5-112

ALTA 15.2-06 Nonimputation - Partial Equity Transfer 10.52 5-113

ALTA 16-06 Mezzanine Financing 10.53 5-114

ALTA 17-06 Access and Entry 10.54 5-115

ALTA 17.2-06 Utility Access (New Jersey Variation) 10.63 5-124

ALTA 17.1-06 Indirect Access and Entry 10.59 5-116

ALTA 18-06 Single Tax Parcel 10.55 5-117

ALTA 18.1-06 Multiple Tax Parcel - Easements 10.56 5-118

ALTA 18.2-06 Multiple Tax Parcel Endorsement 10.56 5-172

ALTA 18.3-05 Single Tax Parcel and ID 10.55 5-180

ALTA 19-06 Contiguity - Multiple Parcels 10.57 5-119

ALTA 19.1-06 Contiguity - Single Parcel 10.58 5-120

ALTA 19.2-06 Contiguity - Specified Parcels 10.102 5-170

ALTA 20-06 First Loss-Multiple Parcel Transactions 10.60 5-121

ALTA 23-06 Co-Insurance - Single Policy 10.93 5-160

ALTA 23.1-06 Co-Insurance – Multiple Policies 10.93 5-173

ALTA 22-06 Location (New Jersey Variation) 10.62 5-123

ALTA 25-06 Same As Survey (New Jersey Variation) 10.64 5-125

ALTA 25.1-06 Same As Portion of Survey 10.65 5-126

INSURANCE RATING BUREAU viii September 1, 2019

ALTA 26-06 Subdivision 10.104 5-176

ALTA 28-06 Easement-Damage or Enforced Removal 10.66 5-127

(New Jersey Variation)

ALTA 28.1-06 Encroachments - Boundaries and 10.77 5-141

Easements (New Jersey Variation)

ALTA 28.2-06 Encroachments - Boundaries and 10.92 5-159 Easements - Described Improvements (New Jersey Variation)

ALTA 28.3-06 Encroachments - Boundaries and 10.103 5-171 Easements - Defined Improvements and Land Under Development (New Jersey Variation)

ALTA 29-06 Interest Rate Swap Endorsement- 10.68 5-129

Direct Obligation

ALTA 29.1-06 Interest Rate Swap Endorsement- 10.69 5-130

Additional Interest

ALTA 29.2-06 Interest Rate Swap Endorsement- 10.74 5-135

Direct Obligation - Defined Amount

ALTA 29.3-06 Interest Rate Swap Endorsement- 10.75 5-136

Additional Interest - Defined Amount

ALTA 30-06 One to Four Family Shared Appreciation

Mortgage Endorsement 10.70 5-131

ALTA 30.1-06 Commercial Participation Interest 10.71 5-154

(New Jersey Variation)

ALTA 31-06 Severable Improvements 10.72 5-133

ALTA 33-06 Disbursement 10.73 5-134

ALTA 34-06 Identified Risk Coverage 10.78 5-142

ALTA 35-06 Minerals and Other Subsurface 10.79 5-143

Substances - Buildings

INSURANCE RATING BUREAU ix September 1, 2019

ENDORSEMENT SECTION NJRB

ALTA 35.1-06 Minerals and Other Subsurface 10.80 5-144

Substances - Improvements

ALTA 35.2-06 Minerals and Other Subsurface 10.81 5-145

Substances - Described Improvements

ALTA 35.3-06 Minerals and Other Subsurface 10.82 5-146

Substances - Land Under Development

ALTA 36-06 Energy Project - Leasehold/Easement - 10.83 5-147

Owner’s

ALTA 36.1-06 Energy Project - Leasehold/Easement - 10.84 5-148

Loan

ALTA 36.2-06 Energy Project - Leasehold – Owner’s 10.85 5-149

ALTA 36.3-06 Energy Project - Leasehold - Loan 10.86 5-150

ALTA 36.4-06 Energy Project - Covenants, Conditions 10.87 5-151 and Restrictions - Land Under Development – Owner’s

ALTA 36.5-06 Energy Project - Covenants, Conditions 10.88 5-152 and Restrictions - Land Under Development - Loan

ALTA 36.6-06 Energy Project - Encroachments 10.89 5-153

ALTA 36.7-06 Energy Project - Fee Estate - 10.99 5-166 Owner’s Policy

ALTA 36.8-06 Energy Project - Fee Estate - 10.100 5-167 Loan Policy

ALTA 37-06 Assignment of Rents or Leases 10.90 5-155 Endorsement

ALTA 39-06 Policy Authentication 10.106 5-178

ALTA 43-06 Anti-Taint 10.94 5-161

ALTA 45-06 Pari Passu Mortgage - Loan Policy 10.101 5-168

INSURANCE RATING BUREAU x September 1, 2019

ENDORSEMENT SECTION NJRB

Assignment of Mortgage - Updated Policy 10.25 5-48

Construction Loan Special Policy Endorsement 10.38 5-10

Convertible Adjustable Rate Mortgage 10.9 5-23

Fairway Endorsement - Partnership 10.27 5-51

Fairway Endorsement - LLC 10.28 5-52

FNMA Balloon Mortgage 10.11 5-31

Last Dollar - Application of Mortgage Payments 10.32 5-57

Lender’s Survey Endorsement (Without Survey) 10.15 5-37

Modifiable Mortgage Option Endorsement 10.40 5-65

New Jersey Contract Vendee’s Endorsement 10.95 5-162

New Jersey Option Endorsement 10.96 5-163

New Jersey Partial Release of Mortgaged Premises 10.105 5-177

Reverse Annuity Mortgage 10.13 5-33

Secondary Mortgage Market 10.12 5-32

Successors and Transferees Coverage Endorsement 10.41 5-66

Survey Endorsement 10.5 5-01

Survey Endorsement (Without Survey) for 10.97 5-164 Residential Condominiums and Co-Operatives

Waiver of Arbitration Endorsement 10.67 5-128

INSURANCE RATING BUREAU 2 - 1 September 1, 2019

ARTICLE 1: DEFINITIONS

1.1 "Approved Attorney" means an attorney-at-law admitted to practice in the State of New Jersey who is not an employee of a title insurance company or Title

Insurance Agent, who is approved by an Insurer and upon whose examination of title and report thereon the Insurer or Title Insurance Agent may issue a policy of title insurance.

1.2 "Charges for Title Insurance", as used herein, are all the rates and charges as approved by the Commissioner of Banking and Insurance pursuant to N.J.S.A.

17:46B-41, et seq.

1.3 "Commitment", as used herein, is the agreement of an Insurer to issue its policy or policies of title insurance to a proposed insured, as owner or mortgagee of an estate or interest in the land described therein, all subject to the provisions set forth in the Schedules and Conditions and Stipulations of said commitment.

The commitment sets forth the requirements, including payment of Underwriting

Charge and charges, that must be complied with prior to the issuance of the policy or policies.

1.4 "Examination Charge" is the charge made for the process of reviewing an abstract or search of the appropriate public records for those matters affecting title to a specific parcel of land, examining the results thereof, and issuing a commitment to insure based on such title examination.

1.5 "Insured" is the party to whom coverage is extended by the terms of the policy.

INSURANCE RATING BUREAU 2 - 2 September 1, 2019

1.6 "Insurer" is a title insurance company which is a member or subscriber of the

New Jersey Land Title Insurance Rating Bureau, which is a rating organization or bureau within the meaning of N.J.S.A. 17:46B-46.

1.7 "Preliminary Certificate and Report of Title", "Interim Title Insurance Binder", "Interim Binder", or "Binder" is an approved attorney's preliminary certification of title, which has been duly countersigned by the Insurer or Title Insurance Agent and represents a commitment to issue a title insurance policy. In no event shall such a binder be used as a substitute for a title insurance policy.

1.8 “Record”, “Recording”, “File” or “Filing”, refers interchangeably to the deposit of documents with government offices which maintain public records relating to real or personal property transactions. “Recording Fee” or “Filing Fee” refers interchangeably to the sums of money lawfully charged by government officials for recording or filing, or services related thereto.

1.9 “Settlement Charge” is that charge imposed by an Insurer or a Title Insurance

Agent for attending or conducting a real estate closing or settlement in connection with a real estate transaction in which a title insurance policy or policies are to be issued; i.e., a real estate closing in which the Insurer or

Title Insurance Agent may or may not make disbursements of funds on behalf of the participants, whether or not the settlement takes place by mail or through electronic means, and regardless of the place the settlement occurs, including closing- or settlement-related functions, whether performed before, during or after the occurrence of the closing or settlement itself, but excluding functions for which a charge is imposed under Section 7.1, and functions which would be performed even if no closing or settlement is attended or conducted by the

INSURANCE RATING BUREAU 2 - 3 September 1, 2019

Insurer or Title Insurance Agent. For the purposes of this Manual, the words

“settlement” and “closing” are intended to be synonymous; references in this

Manual to “closing” shall be deemed to refer to “settlement”. “Settlement

Charge” excludes “Escrow Service Charge”, as discussed in Section 6.5 of this

Manual. Specifically, the term “settlement charge” means either “settlement with disbursements charge” or “settlement without disbursements charge”, as those terms are defined below, and in accordance with Article 6 of this Manual.

(a) “Settlement with Disbursements Charge” is that charge imposed by an

Insurer or a Title Insurance Agent for attending or conducting a real estate closing or settlement which involves making disbursements of funds on behalf of the participants, whether or not the closing takes place by mail or through electronic means, and regardless of the place the closing occurs, including closing- or settlement-related functions, whether performed before, during or after the occurrence of the closing or settlement itself, but excluding functions for which a charge is imposed under Section 7.1, and which functions would be performed even if no closing or settlement is attended or conducted by the Insurer or Title Insurance Agent.

(b) “Settlement without Disbursements Charge” is that charge imposed by an

Insurer or a Title Insurance Agent for attending or conducting a real estate closing or settlement which does not involve making disbursements of funds on behalf of the participants, whether or not the closing takes place by mail or through electronic means, and regardless of the place the closing occurs, including closing- or settlement-related functions, whether performed before, during or after the occurrence of the closing or settlement

INSURANCE RATING BUREAU 2 - 4 September 1, 2019 itself, but excluding functions for which a charge is imposed under Section

7.1, and which functions would be performed even if no closing or settlement is attended or conducted by the Insurer or Title Insurance Agent.

1.9.1 “Simultaneously-Issued Policy” is a loan policy wherein the mortgage insured thereunder was made within sixty (60) days of the Date of Policy of an owner’s policy, in accordance with the provisions of §3.4 of this Manual.

1.10 "Title Insurance Agent" shall mean a person or entity as defined in N.J.S.A.

17:46B-1(i) who or which holds a valid license from the State of New Jersey and is a party to a written contract with an Insurer which authorizes the Title

Insurance Agent to prepare and issue title insurance commitments, policies and endorsements on its behalf. Nothing contained in this Manual shall be construed to extend the authority or scope of agency of a Title Insurance Agent beyond that which is set forth in its contract with an Insurer.

1.11 “Transaction Management Platform Fees” are those fees charged on a per file/transaction basis to the Insurer or Title Insurance Agent by software vendors to process and post title, settlement and related documents on the internet in order to enable customers, lenders and/or their representatives to access and/or obtain delivery of title, settlement and related documents.

1.12 "Underwriting Rate" or “Underwriting Charge” is that charge made by the Insurer or Title Insurance Agent for the liability undertaken under the policy and is based on the amount of insurance shown in the policy. The rules for determining the

Standard Underwriting Rate, Refinance Underwriting Rate, Modification

Underwriting Rate and Construction Underwriting Rate are set forth in Article 4 of this Manual.

INSURANCE RATING BUREAU 2 - 5 September 1, 2019

ARTICLE 2: METHODS OF OPERATION

2.1 "Company or Title Insurance Agent Procedure": Under this procedure the

Insurer or Title Insurance Agent examines the title and issues its commitment for insurance. In some instances the Insurer or Title Insurance Agent may perform certain services relating to the closing or settlement. The charges under this procedure shall consist of the applicable fees, charges and rates as contained herein and approved by the Commissioner of Banking and Insurance.

2.2 "Approved Attorney Procedure": Under this procedure the approved attorney certifies the title to the Insurer or Title Insurance Agent on a preliminary report of title based upon the approved attorney's examination of title. "Examination" for the purpose of this Section is the process of abstracting and searching or causing an abstract or search to be made of the appropriate public records for those matters affecting title to a specific parcel of land, examining the results thereof, and reporting such results and conclusions to the Insurer or Title

Insurance Agent on a preliminary report of title. The Insurer or Title Insurance

Agent in reliance upon such report may issue an interim binder and the approved attorney may conduct a settlement or closing based upon such report and interim binder. Subsequently, the insurance policy shall be issued by the Insurer or

Title Insurance Agent based upon the approved attorney's final certificate of title.

In certain cases an approved attorney may submit only a final certificate of title to the Insurer or Title Insurance Agent, and based upon such certificate Insurer or

Title Insurance Agent may issue the title insurance policy. The charge for insurance under this procedure shall be the Underwriting Rate based on the

INSURANCE RATING BUREAU 2 - 6 September 1, 2019 insurance liability assumed in the particular transaction and, when applicable, the other approved fees, rates and charges.

INSURANCE RATING BUREAU 3 - 1 September 1, 2019

ARTICLE 3: GENERAL RULES

3.1 OWNER'S INSURANCE - BASIS FOR CALCULATING UNDERWRITING

RATES

3.1.1 POLICY ISSUED AT THE TIME OF ACQUISITION OF PROPERTY

The Underwriting Rate for an owner's policy issued at the time of the acquisition of the property shall be based upon an amount not less than the full consideration, including the aggregate unpaid sum of any mortgage or other assumed liens. When property is acquired for nominal consideration, the

Underwriting Rate shall be calculated using 3.1.2 below.

3.1.2 POLICY ISSUED AT A TIME OTHER THAN AT ACQUISITION OF TITLE

When an owner's policy is issued at a time other than at acquisition of title, the

Underwriting Rate shall be based upon at least the then present fair market value of the property as established to the satisfaction of the Insurer at the time the owner's policy is issued.

3.1.3 CONVERSION OF ESTATE INSURED

(a) When the insured under a loan policy acquires title to the land by foreclosure or by voluntary conveyance in extinguishment of the debt and the insured requests owner's title insurance, such insured or the designee for the benefit of such insured may be issued an owner's policy, and the rate shall be the

Standard Underwriting Rate which should be calculated pursuant to 3.1.1 and

3.1.2 above.

(b) When an insured lessee or optionee acquires the fee simple estate and an owners policy of title insurance is requested insuring the acquisition of the same, the rate shall be the Standard Underwriting Rate. When an insured

INSURANCE RATING BUREAU 3 - 2 September 1, 2019 contract vendee acquires the fee simple estate and an owner’s policy is requested insuring the acquisition of same, the rate shall be the Standard

Underwriting Rate, subject to a credit equal to the amount of the policy

Underwriting Charge (exclusive of endorsements and other charges and fees) paid the insuring company for the policy insuring its interest as contract vendee.

The credit shall only apply where the insured contract vendee requests an owner’s policy insuring the fee simple estate in the same Land from the same

Insurer.

3.1.4 RATES CALCULATED TO WHOLE DOLLARS

All rates under this Manual shall be calculated to the nearest whole dollar amount.

3.1.5 RIGHT TO IMPOSE SPECIAL CHARGES

(a) The Underwriting Rates for title insurance contained in the underwriting schedules in this Rate Manual apply to the usual or standard title insurance matter, one not involving special risks or unusual hazards. When an Insurer is requested to insure a title involving special risks or unusual hazards, such insurance may be issued upon payment of such additional charges as the

Insurer believes are commensurate with the undertaking.

(b) The examination charges set forth in this Rate Manual contemplate the normal or ordinary examination of title, one not requiring extraordinary time and/or expertise. When the Insurer or Title Insurance Agent is requested to conduct an examination which requires extraordinary time and/or expertise, the said Insurer reserves the right to impose additional examination charges commensurate with the work involved.

INSURANCE RATING BUREAU 3 - 3 September 1, 2019

(c) The closing or settlement charges set forth in this manual contemplate the normal or usual settlement, one not involving an unusually complex closing or settlement, or, in the case of a settlement with disbursements, an unusually large number of disbursement checks or wire transfers or documents to be recorded. When the Insurer or Title Insurance Agent is asked to attend or conduct an unusually complex closing or settlement, the Insurer or Title

Insurance Agent may impose an additional charge commensurate with the time and effort involved.

(d) In any of the above situations the applicant and the proposed insured shall be promptly notified of the estimated special charge and granted the opportunity to withdraw the title insurance application or order. Said notification shall indicate that the insured has a right to appeal the imposition of a special charge hereunder to the Commissioner of Banking and Insurance. If the imposition of such special charge is acceptable to an applicant, the applicant shall consent thereto in writing.

(e) The Insurer and Title Insurance Agent shall keep and maintain records of each special charge imposed hereunder in order that such charges and the circumstances under which they are imposed may be periodically reported to the

Department of Banking and Insurance. In addition, the Insurer and Title

Insurance Agent shall be prepared, at the request of the Commissioner of

Banking and Insurance, to justify each special charge imposed.

INSURANCE RATING BUREAU 3 - 4 September 1, 2019

3.1.6. CANCELLATION FEE

When an application for title insurance is canceled prior to closing or when the proposed transaction is not consummated, the cancellation fee shall be the examination charge plus other charges which have been incurred.

3.2 LEASEHOLD INSURANCE - BASIS FOR CALCULATING UNDERWRITING

RATE

When title insurance is issued for a leasehold estate, the Underwriting Rate shall be based upon the amount of insurance selected by the insured according to one of the following methods:

(a) an amount equal to the aggregate of the total rentals payable under the lease; or

(b) the aggregate amount of the total rentals for the six (6) years immediately following the settlement or closing of the lease transaction (on percentage leases, a statement of estimated rent may be used); or

(c) the appraised fair market value of the land and improvements at the time of insuring the premises established by an appraiser acceptable to the Insurer

(in the case of proposed construction the land and total projected cost of such improvements); or

(d) when insuring an assignment of a leasehold estate, the full consideration for the estate, including all obligations assumed.

3.2.1 SIMULTANEOUS ISSUANCE OF OWNER'S AND LEASEHOLD POLICIES

When owner's and leasehold policies covering the same property are issued simultaneously, the Underwriting Rate for the leasehold policy shall be 30% of the Underwriting Rate for the owner's policy up to the owner's policy liability amount. The Underwriting Rate for the amount of the leasehold policy

INSURANCE RATING BUREAU 3 - 5 September 1, 2019 exceeding the owner's policy shall be calculated at the Standard Underwriting

Rate in the applicable bracket or brackets.

3.3 MORTGAGE INSURANCE - BASIS FOR CALCULATING UNDERWRITING

RATE

3.3.1 UPON CREATION OF MORTGAGE

When title insurance is to be issued to a mortgagee at the time the mortgage is created, the face amount of the mortgage shall determine the Underwriting Rate.

3.3.2 AFTER CREATION OF MORTGAGE

When title insurance is to be issued after the mortgage has been created and all advances have been made by the mortgagee, the Underwriting Rate shall be determined by the unpaid principal amount of the mortgage at the time the insurance is issued.

3.3.3 MORTGAGE COVERING REALTY AND PERSONALTY

When a mortgage covers other property (real or personal), the Underwriting Rate for mortgage insurance shall be based only upon that portion of the mortgage loan attributable to the insured property, including fixtures.

3.3.4 JUNIOR (INCLUDING SECONDARY AND WRAPAROUND) MORTGAGES

(a) When a title insurance policy is issued to a junior mortgagee at the time the junior mortgage is created, the face amount of the junior mortgage shall determine the Underwriting Rate.

(b) When separate title insurance policies are issued simultaneously insuring more than one mortgage on the same property, they shall be treated for insurance purposes as a single transaction, and the Underwriting Rate shall be based upon the aggregate of the face amounts of the mortgages.

INSURANCE RATING BUREAU 3 - 6 September 1, 2019

(c) When a wraparound mortgage is being insured, the Underwriting Rate shall be the rate applicable to refinance, recast or substitution loans as to the amount of the then existing indebtedness being wrapped around. As to the additional money secured, the Underwriting Rate schedule in the applicable bracket or brackets shall apply.

3.4 SIMULTANEOUSLY ISSUED POLICIES - BASIS FOR CALCULATING

CHARGE

(a) When a loan policy or policies are issued to a mortgagee or mortgagees simultaneously with the policy insuring the interest of the owner of the fee or leasehold, in the same estate, the Underwriting Rate shall be the rate applicable to the greatest Amount of Insurance (or aggregate Amounts of Insurance). The charge for each simultaneously-issued policy (after the policy for which the applicable Underwriting Rate is paid) shall be $25.00. For the purposes of this section, a loan policy or policies shall be deemed to have been issued simultaneously under the circumstances set forth below.

(b) If the mortgage or mortgages to be insured are made within sixty (60) days of the Date of Policy of the owner’s policy, and the Amount of Insurance or aggregate Amounts of Insurance of the loan policy or policies do not exceed the

Amount of Insurance of the owner’s policy, the simultaneous-issue charge shall be $25.00 for each simultaneously-issued policy. But if the Amount of Insurance or aggregate Amounts of Insurance of the loan policy or policies shall exceed the

Amount of Insurance of the owner’s policy, the charge shall be the Underwriting

Rate for the liability assumed in excess of the Amount of Insurance of the owner’s policy, in addition to the simultaneous-issue charge of $25.00 for each simultaneously-issued policy.

INSURANCE RATING BUREAU 3 - 7 September 1, 2019

(c) In the event the mortgage or mortgages are made after the expiration of the sixty (60) day period referred to above, the simultaneous-issue charges shall not be applied; rather, the applicable Underwriting Rate shall be applied to the loan policy or policies. The rates and charges set forth above are imposed in addition to charges imposed under Article 5 or any other applicable article or section of this Manual.

(d) In cases where the Insurer is requested to issue an Enhanced Coverage policy and a simultaneous standard coverage policy, the Enhanced Coverage policy shall be charged as specified in Section 4.8 of this Manual and the

Standard, Refinance or Modification Underwriting Rate shall be charged for the standard coverage policy for any policy liability in excess of the face amount of the Enhanced Coverage policy, if any. In cases where a mortgage is being refinanced or modified, and the Insurer is requested to issue a simultaneous owner’s policy in the same or a lesser amount, the Standard Underwriting Rate shall be applied up to the face amount of the owner’s policy, which shall be at least the present fair market value of the property. The Refinance or Modification

Underwriting Rate shall be applied to any sum in excess thereof, up to the face amount of the loan policy in the applicable bracket or brackets.

3.4.1 SIMULTANEOUSLY-ISSUED POLICIES B ENDORSEMENT CHARGES

Whenever two or more policies are to be issued simultaneously, as provided in

Section 3.4 or in Section 3.3.4, and the Insurer is requested to issue the same endorsement for both or all policies, only a single charge shall be made for the issuance of such endorsement, except in those cases in which Sections 3.4 (with respect to enhanced coverage policies), 4.8, 10.37 or 10.38 applies.

INSURANCE RATING BUREAU 3 - 8 September 1, 2019

3.5 CO-INSURANCE - BASIS FOR CALCULATING UNDERWRITING CHARGE

3.5.1 CO-INSURANCE - SEVERAL LIABILITY

In a transaction where the aggregate liability assumed is divided severally among two or more Insurers from the first dollar, the Underwriting Charge shall be based upon the aggregate liability assumed by all Insurers, with the same being distributed to each Insurer in direct proportion its respective share of the aggregate liability assumed.

3.5.2 CO-INSURANCE - JOINT AND SEVERAL LIABILITY

In a transaction where all or part of the aggregate liability assumed is divided jointly and severally among two or more Insurers from the first dollar, the aggregate Underwriting Charge for the liability assumed up to the dollar limit of joint and several liability shall be 120% of the applicable Underwriting Charge, and the aggregate Underwriting Charge for co-insurance above the dollar limit of joint and several liability shall be based upon the aggregate liability assumed by all Insurers, and shall be distributed to each Insurer in direct proportion to its respective share of the aggregate liability assumed.

September 1, 2019 4 - 1

ARTICLE 4: SCHEDULE OF RATES

4.1 UNDERWRITING RATE SCHEDULES - MINIMUM CHARGE

The minimum Underwriting Charge in any transaction shall be $200.00.

4.2 STANDARD UNDERWRITING RATE SCHEDULE

The Standard Underwriting Rate for either owner's insurance, leasehold insurance, or mortgage insurance, shall be calculated according to the following rate schedule:

Policy Liability Rate per $1,000 or Fraction Thereof

$0-$100,000 .................................................................................... $5.25

$100,001-$500,000 ..................................................................... add $4.25

$500,001-$2 million ..................................................................... add $2.75

Over $2 million .......................................................................... add $ 2.00

4.3 REISSUE UNDERWRITING RATE SCHEDULE

[This Section deleted March 1, 2009. See Section 4.2 entitled

STANDARD UNDERWRITING RATE SCHEDULE.]

4.4 UNDERWRITING RATE APPLICABLE TO LOT DEVELOPMENT,

SUBDIVISION, OR CONDOMINIUM REGIMES

[This Section deleted March 1, 2009. See Section 4.2 entitled STANDARD

UNDERWRITING RATE SCHEDULE.]

4.5 UNDERWRITING RATE APPLICABLE TO DEVELOPMENT OR

CONSTRUCTION LOANS

The Underwriting Rate for a policy of title insurance insuring the priority of a temporary construction mortgage which is to be paid off within three (3) years of the recording of said mortgage shall be $1.00 for each $1,000.00 of

September 1, 2019 4 - 2 liability or fraction thereof, payable at the time that insurance liability is incurred. At the end of the said three-year period, said insurance coverage shall terminate. Prior to said termination, the insured may elect to obtain a permanent policy of title insurance. If a mortgagor requests owner's insurance or obtains substitute financing and title insurance is sought from the same Insurer, the Standard Underwriting Charge shall apply except that a credit of $1.00 per $1,000.00 of liability of the permanent policy shall be credited against the Underwriting Charge for that policy. Said credit, however, shall not exceed the amount paid for the three-year term policy.

The Underwriting Rate afforded by this Section is limited to loan policies issued with a Special Construction Loan Policy Endorsement (NJRB 5-10).

Loan policies charged using this Underwriting Rate are excluded from

Section 3.4.

4.6 UNDERWRITING RATES FOR REFINANCE, RECAST OR

SUBSTITUTION LOANS, AND MORTGAGE OR LEASEHOLD

MODIFICATION AGREEMENTS.

4.6.1 REFINANCE, RECAST OR SUBSTITUTION LOANS

When a refinance, recast or substitution loan is made to the same borrower on the same property, the following rates shall apply to so much of the new policy as represents the face amount of the mortgage or mortgages other than construction loans being refinanced:

Policy Liability Rate per $1,000 or Fraction Thereof

$0-$100,000 ........................................................................................ $2.75

$100,001-$500,000 ...................................................................... add $2.50

$500,001-$2 million ..................................................................... add $2.25

September 1, 2019 4 - 3

Over $2 million ............................................................................. add $1.75

The rate to be applied to the liability assumed, if any, over and above that which is eligible for the refinance, recast or substitution loan rate set forth above, shall be calculated using the Standard Underwriting Rate in the applicable bracket or brackets.

4.6.2 MORTGAGE OR LEASEHOLD MODIFICATION AGREEMENTS

When a mortgage or leasehold modification or extension agreement is executed, the Underwriting Charge for an endorsement to the existing policy or a new policy insuring the modification or extension agreement shall be based upon the following rates up to the amount of the mortgage or lease being modified, provided that the loan being modified or extended is not a construction loan, and the property is identical to or included within the property previously insured.

Policy Liability Rate per $1,000 or Fraction Thereof

$0-$100,000 ........................................................................................ $1.75

$100,001-$500,000 ...................................................................... add $1.50

$500,001-$2 million ..................................................................... add $1.25

Over $2 million ........................................................................... add $1.00

The rate to be applied to the liability assumed, if any, over and above that which is eligible for the mortgage or leasehold modification rate set forth above, shall be calculated using the Standard Underwriting Rate in the applicable bracket or brackets.

September 1, 2019 4 - 4

4.7 MORTGAGE FORECLOSURE INSURANCE

When an applicant requests a search and insurance for use in connection with institution of a mortgage foreclosure, a Mortgage Foreclosure

Insurance Policy shall be issued. Such a policy will provide for a minimum liability of $10,000.00, and the Underwriting Charge shall be $500.00, plus pass-through charges as provided in Section 5.3. The $500.00

Underwriting Charge shall be due and payable at the time the application is made. If the applicant requests insurance coverage greater than

$10,000.00, the Underwriting Charge for such additional insurance shall be based upon the refinance rate. The charge will include one continuation through the filing of the Notice of Lis Pendens. If additional continuations are requested, the charge for each such continuation shall be $45.00 plus pass through charges.

4.8 ENHANCED COVERAGE POLICIES AND ENDORSEMENTS

Enhanced coverage owners and loan policies, for one-to-four family residential transactions only, are available upon request. A Bureau member may use a specific or proprietary name or trademark to identify its enhanced coverage policies. The Underwriting Charge for the issuance of such policies shall be 120% of the otherwise applicable Underwriting

Charge in that transaction. Included in the enhanced coverage loan policy is coverage otherwise given by the following endorsements: ALTA

9.10-06 (NJRB 5-157); ALTA 8.1-06 (NJRB 5-94); ALTA 6-06, and

6.2-06 (NJRB 5-91 and 5-92); ALTA 4.1-06 (NJRB 5-89); and ALTA 5.1-06

(NJRB 5-90). No additional charge will be made with the enhanced

September 1, 2019 4 - 5 coverage loan policy for coverage normally given by these endorsements.

Other charges and endorsements will be billed as specified in the Rate

Manual.

4.9 BALLOON LOAN MODIFICATION LIMITED POLICY

The Balloon Loan Modification Limited Policy may be issued to insure the continued validity and priority of a balloon loan modification agreement modifying a balloon loan mortgage on a one-to-four family residential property. The Underwriting Charge for this policy shall be $200.00 together with, an Examination Charge of $100.00 and such other pass through charges for other required searches pursuant to Section 5.3 herein.

4.10 ENDORSEMENTS INCORPORATED BY REFERENCE

Whenever a policy form incorporates by reference, or permits incorporation by reference (through use of a check-off box or similar device), an endorsement for which a separate charge is provided under this Manual, the charge for those endorsements required by the applicant or the insured shall be made in addition to the Underwriting Charge for the issuance of the policy. This Section shall not apply to policies referred to in Section 4.8 of this Manual (“Enhanced Coverage Policies”).

4.11 ALTA RESIDENTIAL LIMITED COVERAGE MORTGAGE MODIFICATION

POLICY

Whenever the ALTA Residential Limited Coverage Mortgage Modification

Policy is issued, the Underwriting Charge for this policy shall be based upon the following rates:

September 1, 2019 4 - 6

Policy Liability Underwriting Charge

$0 - $1,000,000……………………………..….................... $125 $1,000,001 - $1,500,000…………………….................….. $250 $1,500,001 - $2,000,000…………………..................….... $350

For each $500,000 of Policy Liability or fraction thereof above $2,000,000 up to $20,000,000 add $100 to the Underwriting Charge.

In addition to the Underwriting Charge, the Examination Charge and charges for searches may be imposed at the discretion of the Insurer or

Title Insurance Agent, but the same shall not exceed the charges as set forth in Article 5.

September 1, 2019 5 - 1

ARTICLE 5: EXAMINATION AND SEARCH CHARGES

5.1 EXAMINATION CHARGE

When an Insurer or Title Insurance Agent examines the title to real estate and issues a commitment to insure, the charge for such examination involving a single chain of title shall be $100.00.

5.2 REISSUE EXAMINATION CHARGE [This Section deleted March 1, 2009. See

Section 5.1 entitled EXAMINATION CHARGE.]

5.3 PASS THROUGH CHARGES FOR SEARCHES

Costs for requested or required searches will be separately charged to the applicant, including, but not limited to, the following:

1. New Jersey Superior Court, U.S. District Court and U.S. Bankruptcy

Court searches;

2. municipal tax and assessment searches;

3. municipal utility, water and sewer authority searches;

4. corporate status and franchise tax reports;

5. uniform commercial code searches;

6. county clerk’s and register’s office searches, including pre- and post-closing continuation searches;

7. surrogate’s court searches;

8. abstracts or certificates of regulatory of judicial proceedings;

9. tidelands searches; and

10. photocopy charges associated with any of the searches set forth above.

September 1, 2019 5 - 2

5.4 ADDITIONAL CHAINS OF TITLE

For each additional chain of title the examination charge shall be $100.00.

5.5 PROPERTY IN TWO OR MORE COUNTIES

Where the real estate in question lies in two or more counties, a separate examination charge shall be made for each county.

September 1, 2019 6 - 1

ARTICLE 6: SETTLEMENT CHARGES

6.1 SETTLEMENTS WITH DISBURSEMENTS

Where the Insurer or Title Insurance Agent conducts a settlement with disbursements, as the same is defined in Section 1.9(a), the charge shall be

$300.00 for a settlement which does not exceed 60 minutes in length, plus additional charges, set forth in Section 1.9(a) and any other applicable section of this Manual. Settlements conducted by mail or electronically shall be deemed to be conducted in the Insurer’s or Title Insurance Agent’s office. Nothing contained in Sections 6.1 et seq. shall be deemed to limit the applicability of Sections 3.1.5 or 7.6 or any other applicable provision of this Manual.

6.2 SETTLEMENTS WITH DISBURSEMENTS; ADDITIONAL CHARGES

6.2.1 SETTLEMENTS OUTSIDE THE INSURER’S OR TITLE INSURANCE

AGENT’S OFFICE

If the settlement with disbursements occurs outside the Insurer’s or Title

Insurance Agent’s office, $25.00 shall be added to the settlement charge

(for a total charge of $325.00). In addition, travel time in excess of one

(1) hour shall be charged at the rate of $25.00 per hour (or fraction thereof).

Out-of-pocket expenses for tolls, parking, lodging, rail or air fares and other travel-related items (if applicable) shall also be charged. Mileage shall be charged at the rate established from time to time by the Internal Revenue

Service pursuant to the Income Tax Regulations. The charge imposed

September 1, 2019 6 - 2 under this sub-section shall be in addition to the charges imposed under

Sections 6.2.2 and 6.2.3, if applicable.

6.2.2 SETTLEMENTS OUTSIDE REGULAR BUSINESS HOURS

If the settlement with disbursements is scheduled to commence outside regular business hours at the request of a party to the transaction or his or her attorney, $50.00 shall be added to the minimum settlement charge (for a total charge of $350.00). For the purpose of this sub-section, regular business hours shall be the hours of 9:00 A.M. to 5:00 P.M. Monday through

Friday, exclusive of legal holidays. The charge imposed under this sub-section shall be in addition to the charges imposed under Sections

6.2.1 and 6.2.3, if applicable.

6.2.3 SETTLEMENTS OF GREATER THAN NORMAL LENGTH

If the length of the settlement with disbursements, as defined in Section

1.9(a), exceeds 60 minutes, an additional charge of $100.00 shall be added for each additional hour in excess of the initial 60-minute period. Charges shall be rounded to the nearest whole hour. The charge imposed under this sub-section shall be in addition to the charges imposed under Sections

6.2.1 and 6.2.2, if applicable. A preliminary estimate may be provided, based on the average or customary charge.

6.3 SETTLEMENTS WITHOUT DISBURSEMENTS

When the Insurer or Title Insurance Agent attends or conducts a settlement without disbursements, as the same is defined in Section 1.9(b), the charge shall be $150.00 for a settlement which does not exceed 60 minutes in length, plus additional charges, set forth in Section 1.9(a) and any other

September 1, 2019 6 - 3 applicable section of this Manual. Settlements conducted by mail or electronically shall be deemed to be conducted in the Insurer’s or Title

Insurance Agent’s office. Nothing contained in Sections 6.3 et seq. shall be deemed to limit the applicability of Sections 3.1.5 or 7.6 or any other applicable provision of this Manual.

6.4 SETTLEMENTS WITHOUT DISBURSEMENTS; ADDITIONAL CHARGES

6.4.1 SETTLEMENT WITHOUT DISBURSEMENTS; ATTENDANCE OUTSIDE

INSURER’S OR TITLE INSURANCE AGENT’S OFFICE

If the settlement without disbursements occurs outside the Insurer’s or

Title Insurance Agent’s office, $25.00 shall be added to the settlement without disbursements charge (for a total charge of $175). In addition, travel time in excess of one (1) hour shall be charged at the rate of $25.00 per hour (or fraction thereof). Out-of-pocket expenses for tolls, parking, lodging, rail or air fares and other travel-related items (if applicable) shall also be charged. Mileage shall be charged at the rate established from time to time by the Internal Revenue Service pursuant to the Income Tax

Regulations. The charge imposed under this sub-section shall be in addition to the charges imposed under Sections 6.4.2 and 6.4.3, if applicable.

6.4.2 SETTLEMENTS OUTSIDE REGULAR BUSINESS HOURS

If the settlement without disbursements is scheduled to commence outside regular business hours at the request of a party to the transaction or his or her attorney, $50.00 shall be added to the settlement without disbursements charge (for a total charge of $200.00). For the purpose of

September 1, 2019 6 - 4 this sub-section, regular business hours shall be the hours of 9:00 A.M. to

5:00 P.M. Monday through Friday, exclusive of legal holidays. The charge imposed under this sub-section shall be in addition to the charges imposed under Sections 6.4.1 and 6.4.3, if applicable.

6.4.3 SETTLEMENTS OF GREATER THAN NORMAL LENGTH

If the length of the settlement without disbursements, as defined in Section

1.9(b), exceeds 60 minutes, an additional charge of $50.00 shall be added for each additional hour in excess of the initial 60-minute period. Charges shall be rounded to the nearest whole hour. The charge imposed under this sub-section shall be in addition to the charges imposed under Sections

6.4.1 and 6.4.2, if applicable. A preliminary estimate may be provided, based on the average or customary charge.

6.4.4 SETTLEMENTS OF GREATER THAN NORMAL LENGTH;

STATEMENT OF CHARGES

If the Insurer or Title Insurance Agent conducts a settlement of greater than normal length, whether the same occurs with or without disbursements, the Insurer or Title Insurance Agent shall provide the applicant, upon request, with a statement of the time expended by the

Insurer or Title Insurance Agent in connection therewith, setting forth the total length of time expended on settlement-related functions.

6.5 ESCROW SERVICE

All escrows and escrow services shall be the subject of a written agreement, and a reasonable charge for administering the account may be charged, provided disclosure is made to the parties involved. For the

September 1, 2019 6 - 5 purposes of this Section, “escrows and escrow services” does not include settlement services, for which separate charges are applicable pursuant to

Sections 6.1 through…