1. Welcome to our CLE/CE Webinar Our webinar will be starting at promptly 10:00 am. Basics of Title Reading June 21, 2016 FNTG Provider Approval Number NYPO-103237 Presenter Janice Morelli - Instructor Approval Number NYIN-320575 Course Approval Number NYCR-253078 For improved audio, we recommend dialing into the Webex provided phone number rather than listening thru your internet connection.

2. Janice Morelli Janice Morelli joined the Fidelity National Title Group in 2005 as Vice President and Agency Counsel. Prior to joining Fidelity, she was vice president and underwriting counsel for a major New York Title Insurance Company, after having spent many years as counsel for a New York title agency, and practicing law at a general practice law firm. Janice earned her Juris Doctor degree from New York's Fordham University Law School, dual Bachelor of Arts degrees from Fordham University, and attended Columbia University's Graduate School of Arts and Sciences. Janice Morelli has been a presenter of CLE material and telephone seminars on behalf of Fidelity, and has been published in the New York Law Journal. She served on the NYSLTA Executive Committee, on a Tirsa Forms subcommittee, and is currently a member of the NYSLTA’s Legislative and Law Committees. Janice is admitted to the practice of law in the State of New York, and is a member of the New York State Bar Association.

3. BASICS OF TITLE READING

4. Concepts of Land Ownership What is Land How is title created, retained and transferred Types of Interests in Land

5. FUNCTION OF THE TITLE READER Produce a title commitment certifying title and reporting the such title that the Company is willing to insure, subject to certain title exceptions. The reader’s work product becomes the Title Commitment from which the Owner’s and Lender’s Policies will be issued.

6. FUNCTION cont’d Analyze the abstract of title and other title materials, and then apply legal principals and title underwriting guidelines to: 1.Certify Title 2.Raise exceptions for title defects and the proofs required to establish Seller’s Title, and 3. Identify encumbrances adversely affecting the title or its use and enjoyment

7. The Title Insurance Commitment Is a contract between the title insurer and the proposed insured to issue a title policy subject the exceptions as shown in the commitment and the terms, conditions, and exclusions of the policy. Show the status of the title as of the effective date shown on the commitment. It is only to be issued in connection with insuring a particular real estate transaction.

8. The Commitment Is Not: A report of title not prepared for a particular real estate transaction Is not an Attorney’s Opinion of Title

9. Parts Of The Commitment And Their Purpose Underwriter Jacket & boilerplate Contains the conditions and exclusions Has a specific expiration date Discloses the title underwriter Contains title number Issuing Agent and contact information Signature

10. VERIFICATION CODE: TITLE

11. Parts: Schedule A – Effective date – Title Number – Proposed Insureds – Amount of Insurance – Nature of Transaction – Certification of Title – Tax map designation

12. Parts: Schedule B The Standard Exceptions Permanent exceptions: C&Rs, Easements, Agreements, Survey Exception, etc. Temporary exceptions: open mortgages, taxes, judgments, breaks in the chain of title, trust and estate exceptions, entity exceptions, etc

13. Parts: Schedule B con’t Open mortgages are usually set out in a separate mortgage schedule Tax Searches are part of the Schedule B Don’t group with departmental searches

14. Parts: Schedule B con’t. Note: The title underwriter may be willing to insure title free of certain temporary exceptions such as breaks in the chain of title or prior owner open mortgages, but even if omitted as an exception from coverage, they remain encumbrances and affect marketability of title. So, even if there’s no risk of enforcement, there is still a possibility of a claim.

15. Preparation Preparing to read: all relevant title documents and updated information should be available to the reader: A tax search with tax map A full abstract of title Survey A copy of the in-take application, contract of sale and Mortgage commitment, if available

16. The Elements of the Abstract Examiner’s cert page Full 40 year search or longer if necessary Surrogate proceedings Copies of deeds and mortgages or complete abstracting Filed maps and tax maps Full Easement and C&R search with copies Judgment and lien searches

17. VERIFICATION CODE: READERS

18. Identifying title issues All interests conveyed? Adequate consideration? Conveyances by entities and fiduciaries by the party with authority to convey? Full judgment and lien search? Any conveyances signed with a Power of Attorney? Any gaps?, Defective acknowledgments? Defective legal descriptions? Any special interests such as riparian rights? Existence of encumbrances? Access?

19. Preparation of the Commitment Completed Schedule A Type of transaction identified? Any easements, C&Rs in Schedule B fully identified? Copies to be included? Tax search and tax map? Note: do not insert with the departmentals Include the survey reading as a numbered exception if possible and include a copy of survey

20. VERIFICATION CODE: ROCK

21. Title Defects, Liens and Encumbrances Any title other than “one free of encumbrances and free of any right or interest in a third person that is incompatible with full enjoyment and ownership of the property.”