Schedule of Rates and Fees State of Washington General Rating Schedule C

Transcription

1 Schedule of Rates and Fees State of Washington General Rating Schedule C Effective Date: April 1st, 2014 This Schedule of Rates shall apply in computing charges for title insurance with respect to all lands situated in the following counties: Clallam, Clark, Cowlitz, Kitsap, Lewis, Mason, Skamania, and Thurston Counties of the State of Washington This Schedule of Rates shall apply in computing charges for owner s and lender s title insurance policies, litigation and trustee s sale guarantees, recorded document guarantees and other guarantees with respect to any lands situated in the State of Washington. Page 1

2 Table of Contents Rating Schedule of Filed Forms Policies of Title Insurance.. Page 4 A. Owner s and Leasehold Owner s Policies B. Loan Policies C. Guarantees D. UCC Insurance Policy Section 1 Title Insurance definition.. Page 5 1. Owner Purchase/Leasehold Insurance 2. Governmental Agencies 3. Mortgage Insurance 4. Fair Market Value Section 2 Types of Policy Coverage.. Page 6 Standard Coverage Extended Coverage Expanded Lender s Coverage Homeowner s Policy Coverage Supplemental to Commitment Section 3 Guarantees.. Page 8 Chain of Title Guarantee Litigation Guarantee Lot Book Guarantee Plant Information Guarantee Subdivision Guarantee Trustee Sale Guarantee Section 4 Application of Rates. Page 10 A. Schedule Rate Applicable to All Coverages B. Computation of Rates C. Separate Rating and Additional Examination Charges D. Cancellation Fees Page 2

3 E. Non-residential Transactions of $20 Million or more Section 5 Rate Reductions. Page 13 A. Short Term Rate B. Simultaneous Issue C. Builder s and Subdivider s Rate D. Equity Rate E. Reorganization and Junior Mortgage Rate F. General Equity Mortgage Rate G. Assignment, Modification or Extension of Mortgage of Deed of Trust H. Renewal Insurance I. Reinsurance J. Employee Rate K. Charitable of Non-Profit Entities L. Residential Resale Rate M. Exchange Facilitator Rate N. Seller s Policy O. Combination Rate P. Prior Title Evidence Rate Q. Non-Resident Prior Policy Rate R. Owner s Policy following Foreclosure or Trustee Sale S. Lender Solution Rate T. Policies Ordered Electronically Section 6 Special Risks. Page 21 A. Tax Title B. Extended Coverage Owner s and Loan Policies C. Standard Exceptions Insurance D. Gas, Oil and Mineral Interests Section 7 General Schedule Rate. Page 23 Section 8 Commercial Rate Schedule. Page 24 Section 9 UCC Basic Rate Schedule. Page 25 Section 10 Endorsements (Lists and fees) Page 26 Page 3

4 Rating Schedule of Filed Forms POLICIES OF TITLE INSURANCE to which this Rate Schedule applies: A. Owner s and Leasehold Owner s Policies: ALTA Owner s Policy ( ) ALTA Homeowner s Policy (Revised ) ALTA U.S. Policy Form ( ) Revised ( ) B. Loan Policies ALTA Loan Policy ( ) ALTA Expanded Coverage Residential Loan Policy (Revised ) ALTA Short Form Expanded Coverage Residential Loan Policy ( ) ALTA Short Form Residential Loan Policy ( ) ALTA Short Form Residential Limited Coverage Junior Loan Policy (4-2-13) ALTA Residential Limited Coverage Junior Loan Policy ( ) ALTA Limited Pre-Foreclosure Policy ( ) ALTA Limited Pre-Foreclosure Policy ( ) C. Guarantees Trustee s Sale Guarantee Litigation Guarantee Subdivision Guarantee ( ) Plant Information Guarantee (6-6-92) Lot Book Guarantee (6-6-92) Chain of Title Guarantee (6-6-92) D. UCC Insurance Policy Page 4

5 SECTION 1 TITLE INSURANCE Unless otherwise provided for herein, the General Schedule shall be applicable in issuing commitments, Litigation Guarantees, Trustee Sale Guarantees, Contract Forfeiture Guarantees or Policies of Title Insurance and they shall be issued in an amount at least equal to the full value of the estate insured, or mortgage amount without deduction of encumbrances: 1.) OWNER PURCHASER/LEASEHOLD INSURANCE: Unless otherwise provided for herein, this Schedule shall be applicable in issuing commitments, Litigation Guarantees, Trustee Sale Guarantees, Contract Forfeiture Guarantees or Policies of Title Insurance and they shall be issued in an amount at least equal to the Fair Market Value of the estate insured, provided that, insurance in a greater amount to cover the value of proposed improvement or anticipated increase in land value may be issued as agreed upon by the Applicant and the Company. 2.) GOVERNMENTAL AGENCIES: The charge for title insurance for governmental agencies, government sponsored agencies, or resultant from programs initiated by those agencies, shall be based upon agreement between the Applicant and the Company 3.) MORTGAGE INSURANCE: Mortgage insurance shall be issued in an amount at least equal to the amount of the loan, except that a policy may be issued to the assignee of a mortgage in an amount not less than the balance due upon the indebtedness, and if the assignment is made as collateral, the policy may be issued in an amount not less than the amount of the collateral loan. The term mortgage as used in this schedule shall also include a Deed of Trust or other real property security transfer. 4.) FAIR MARKET VALUE: Fair Market Value as used in this Rating Schedule shall mean: the price at which a knowledgeable, willing and reasonable buyer and seller would agree to the transfer the property, including all liens and encumbrances. If no sale is involved, Fair Market value shall be determined from all available information but, in no event, shall it be less than the total of all liens and encumbrances. Page 5

6 SECTION 2 TYPES OF POLICY COVERAGE STANDARD COVERAGE: Does not insure against matters set forth in Section 6 C. Unless otherwise provided, the charge for standard coverage owner s and lender s policies shall be 100% of the General Schedule Rate. EXTENDED COVERAGE: Does insure against matters set forth in Section 6 B. Unless otherwise provided, the charge for extended coverage owner s and lender s policies shall be an additional 35% above the General Schedule Rate in King, Pierce, Kitsap, Mason, Thurston, Snohomish and Yakima Counties, and 30% above the General Schedule Rate in all other counties. EXPANDED LOAN POLICY COVERAGE: The ALTA Expanded Coverage Residential Lender s Policy ( ) provides additional protection to a first lien Mortgage lenders beyond that provided by the ALTA Loan Policy ( ). It is designed primarily to be issued simultaneously with the ALTA Homeowner s Policy. This policy is authorized for issuance only when insuring purchase money mortgages on real property improved by owner-occupied 1-4 family residential dwellings or mortgages which refinance them. The premium to be charged for an original ALTA Expanded Loan Policy Coverage shall be calculated by multiplying the basic title insurance rate for lender' policies set forth Section 5 B by 120%.The minimum premium for an ALTA Expanded Loan Policy Coverage policy shall be $ HOMEOWNER S POLICY COVERAGE: The ALTA Homeowner s Policy is an owner's policy with expanded coverage, which is issued only to natural persons (or trustees under inter vivos trusts) on real property improved by a 1-4 family residential dwelling or condominium unit. This policy may also be issued to the Insured under a current standard owner's policy issued by the Company as an upgrade to their current policy coverage, upon the surrender of the current policy and payment of an additional premium. The rates for the ALTA Homeowner s Policy are 10% higher than the standard owner s premium rates. The basic rate premium for an original ALTA Homeowner s Policy shall be calculated as follows: Multiply the applicable title insurance rate premium for an owner s title insurance policy by 110%. The minimum premium for a Homeowner s Policy shall be $ Page 6

7 ENDORSEMENTS: Endorsements and charges therefore are as set forth herein in Section 10. SUPPLEMENTAL TO COMMITMENT: When more than six months has elapsed since the date of an original preliminary title commitment, the charge for bringing the commitment to date will be $ Page 7

8 SECTION 3 GUARANTEES CHAIN OF TITLE GUARANTEE: A Chain of Title Guarantee is issued to a named Assured listing documents pertaining to a specified parcel of land which have been recorded over a designated period of time. The Amount of Liability for a Chain of Title Guarantee shall be $1, The fee for a Chain of Title Guarantee shall be $75.00 per parcel plus $5.00 per item listed. Additional insurance may be purchased at 50% of the General Schedule Rate. LITIGATION GUARANTEE: A Litigation Guarantee is issued for the benefit of an attorney in connection with the commencement of litigation concerning interests in real property, such as quiet title actions, partition actions, judicial foreclosure of mortgages and Deeds of Trusts, and other such actions. The Amount of Liability of a Litigation Guarantee shall be set upon the agreement of the Company and the Assured and shall be charged according to the General Schedule Rate applicable to the county in which the real property is located. If the property is located in two or more counties, the Amount of Liability shall be apportioned between the parcels according to the ratio that the Fair Market Value of each parcel bears to the Fair Market Value of the entire property. The minimum charge for a Litigation Guarantee shall be $ LOT BOOK GUARANTEE: A Lot Book Guarantee is issued to a named Assured showing the last recorded instrument purporting to convey or otherwise transfer title to the land and any mortgages and/or Deeds of Trust purporting to affect title to the land. The Amount of Liability under a Lot Book Guarantee shall be limited to $1, The fee for a Lot Book Guarantee shall be $75.00 per parcel and any increase in the Amount of Liability shall be limited to the next $ above the fee charged. PLANT INFOMRATION GUARANTEE (used in place of History Guarantee): A Plant Information Guarantee will be issued to a named Assured listing those particular matters which, according to the Company s title plant records, have arisen subsequent to a specified date. The Amount of Liability under a Plant Information Guarantee shall be limited to $1, The fee for a Plant Information Guarantee shall be $75.00 per hour of time spent with an additional charge of $5.00 per matter listed with a minimum charge of $ Additional insurance may be purchased at 50% of the General Schedule Rate applicable to the amount requested. Minimum for additional insurance shall be $ Page 8

9 SUBDIVISION GUARANTEE: A Subdivision Guarantee is issued in connection with the submission of a proposed plat or other subdivision of land and shall identify the vestee in title to the real property and those exceptions to title which, under state recording laws, impart constructive notice to matters affecting title to the land. The Assured under a Subdivision Guarantee shall be the proposed applicant of the plat or subdivision, a County or other Municipality in which the land is located, or such other person or entity to which the Company may agree. The Amount of Liability under a Subdivision Guarantee shall be limited to $1, The fee for a Subdivision Guarantee shall be $ plus an additional $ for any additional parcel for which coverage is sought TRUSTEE SALE GUARANTEE: A Trustee s Sale Guarantee may be issued for the benefit of a qualified trustee in connection with the non-judicial foreclosure of a Deed of Trust. The Guarantee will include identification of the current vestee in title, subject to the interests and exceptions to title listed in the Guarantee, which are not shown in the order of priority, and the names and last addresses of record of those persons or entities for which notice may be required under RCW The Amount of Liability for a Trustee s Sale Guarantee shall be based upon the outstanding balance of the obligation for which the Deed of Trust is security. The fee for issuance of a Trustee s Sale Guarantee shall be charged at the General Schedule Rate applicable to the county in which the secured real property is located. If the secured real property is located in two or more counties, the Amount of Liability and the charges therefor shall be apportioned between the parcels according to the ratio that the Fair Market Value of each parcel bears to the amount of the secured obligation. If a Trustee s Sale Guarantee is cancelled and the borrower in default voluntarily transfers the property to the foreclosing lender by a Deed in Lieu of Foreclosure, a credit in the amount of 100% of the charges paid for said Guarantee shall be allowed as a credit against the charge for an owner s policy insuring the foreclosing lender. None of the rate reductions set forth in Section 5 of this rate manual shall apply to this section. Adams, Benton, Clark, Cowlitz, Franklin, Grant, Island, Klickitat, San Juan, Skagit, Whatcom, and Yakima Counties 100% of the General Schedule Rate for liabilities up to $1,000, % of the General Schedule Rate for liabilities in excess of $1,000, Minimum $ All Other Counties: 70% of the General Schedule Rate. Minimum: $ Page 9

10 SECTION 4 APPLICATION OF RATES A. SCHEDULE RATE APPLICABLE TO ALL COVERAGES: The General Schedule Rate shall be applicable in issuing preliminary commitments or policies of title insurance with respect to any estate, lien or interest in real property. A commitment may be issued preliminary to insurance covering any such estate, lien or interest but not for the purpose of showing condition of title in respect to such insurance. The practice of placing a mortgage of record for construction purposes or otherwise, either before or after a preliminary commitment has issued, with request that it be shown as an encumbrance on the title with the further designation that it is not the mortgage to be insured, or any similar practice to avoid the imposition of premium otherwise due, is a violation of this schedule unless the applicable premium is charged and paid. B. COMPUTATION OF RATES: The rates shall be applied in units of $10,000 or as otherwise provided in this Schedule. Where rates are computed as a percentage of the scheduled rate, and the computed rate thereof is not a multiple of $1.00, the computed charge shall be rounded to the next $1.00. C. SEPARATE RATING AND ADDITIONAL EXAMINATION CHARGES: a. Property held in one ownership at the time of application and located in not more than three sections, donation claims or platted additions shall be rated as one property based on the face amount of the policy to issue, without additional charge. b. Property held in one ownership at the time of application and located in more than three sections, donation claims or platted additions shall be rated as one property based in the face amount of the policy to issue: provided, a charge of $75.00 for each section, donation claim or platted addition in excess of three be added to the schedule rate. c. If application is made for a single policy covering property consisting of two or more non-contiguous parcels of land held in one ownership, an additional charge of $ examination fee may be assessed. d. If application is made for a single policy covering property consisting of two or more parcels of land not in common ownership at the time of the application, the insurance with respect to each such parcel shall be rated separately upon the valuation allotted to each parcel. Page 10

11 Page 11 e. When a policy is to cover a parcel of land together with an appurtenant easement, an additional charge of $40.00 will be made for examination of title to the easement, provided such appurtenant easement has been established of record at the time of application; otherwise the additional charge will be $ f. The rates quoted in this Schedule are minimum charges that are to be made for the customer services performed and the usual risks assumed in the issuance of a title insurance policy. If it is determined that additional work is required, or additional risk is involved, the Company reserves the right to make such additional charges as may be deemed necessary to properly compensate the Company for such additional work or risk liability. If this becomes necessary, the Applicant for title insurance will be advised of these additional charges as soon as the circumstances of the transaction permit and afforded the opportunity to cancel. Unless otherwise stated, the minimum charge shall be as shown in the attached Schedule. g. Other services may be required by the applicant for which no rate has been provided for in this Schedule. In such cases a charge will be made which, in the opinion of the Company, is consistent with the general pattern of pricing provided in this Schedule and which will provide adequate payment for the work done and liability assumed. If this becomes necessary, the applicant will be advised of these additional charges as soon as possible and afforded the opportunity to cancel. D. CANCELLATION FEES: a. Cancellation after Issuance of Preliminary Commitment: after the issuance of a Preliminary Commitment to insure, if no transaction is consummated in reliance thereon, the charge for the Commitment shall be reduced to an amount which, in the opinion of the Company, is reasonable compensation for liability incurred and the work performed. The entire charge may be waived if: 1.Through error, a duplicate order has been entered at the same or competing companies; or 2.A transaction is not consummated; or 3.The Company, for underwriting reasons, makes a decision not to insure. b. If a transaction is consummated in reliance upon a commitment issued by the Company, but without requesting a policy of title insurance, the full schedule charge applicable to the type of insurance normally issued on such transaction will apply. c. Cancellation of Litigation or Trustee s Sale Guarantee. After the issuance of the Company s Litigation, Contract Forfeiture or Trustee s Sale Guarantee, should the Owner, Mortgagor, or Vendee, or their Successors in interest, reinstate the

12 Deed of Trust, Mortgage, or Contract, or pay the indebtedness in full and the foreclosure or forfeiture is canceled, the charge for said Guarantee shall be 100% of the amount charged. In no event, however, shall the charge be reduced to less than the minimum stated amount shown in the General Schedule Rate for the county in which the property is located d. If, following the cancellation, the proposed transaction is consummated within 6 months of the date of the cancellation, and a policy of title insurance is issued by the Company, the Applicant shall be entitles to a credit of the cancellation fee on the charges for the title insurance policy issued. e. If, at the request of the insured, a policy is rewritten as of the date of the original policy to replace a lost policy, or for any other purpose, a charge of $25.00 can be charged. If a policy is rewritten to correct an error or misunderstanding, the charge may be waived, at the discretion of the Company. E. NON-RESIDENTIAL TRANSACTIONS OF $20 MILLION OR MORE: Notwithstanding the rates set forth in this manual, the charges for policies, endorsements and/or guarantees where the aggregate amount of insurance or liability is $20,000, or more may be subject to negotiation and agreement between the Company and the customer. Page 12

13 SECTION 5 RATE REDUCTIONS Except where specifically provided for herein, rate reductions within this section shall not be combined. Unless otherwise stated, the minimum premium set forth in the General Schedule Rate tables shall apply. A. SHORT TERM RATE: If a Title Insurance Policy has been issued within the five (5) preceding application with the Company for issuance of a new Policy, the charge for the new Policy shall be 80% of the General Schedule Rate applicable to the Amount of Liability of the new Policy. In no case shall this rate reduction be applied against the charge applicable to Section 6 Special Risks. The minimum premium for this policy shall be $ In no case shall the reduction in rate provided for herein be applied to the charge for any applicable special risks. B. SIMULTANEOUS ISSUE. 1. The charge for loan policies issued simultaneously with any owner s policy shall be: a. $ for each policy in Chelan, Douglas, Grays Harbor, Jefferson, King, Lewis, Lincoln, Pend Oreille, Pierce, Snohomish, Stevens, Walla Walla and Yakima Counties; plus $ for each policy in Adams, Benton, Franklin, Grant, Island, Kittitas, Skagit, Thurston and Whatcom Counties; $ for each policy in San Juan, Spokane and Whatcom Counties; $ for each policy in all other counties; plus b. Any charge for extended coverage which applies to the simultaneously issued loan policies and which is not paid under the owner s policy; plus c. The amount by which the loan policy liability exceeds the owner s policy liability shall be charged at the General Schedule Rate. 2. When a loan policy is issued insuring the lien of a mortgage and policy insuring the lien of a junior mortgage is issued simultaneously therewith, the charge for both loan policies shall be computed as otherwise provided herein but based upon the aggregate amount of both policies plus: $ for each additional policy in Chelan, Douglas, Grays Harbor, Jefferson, King, Lewis, Lincoln, Pend Oreille, Pierce, Snohomish, Stevens, Walla Walla and Yakima Counties; $ for each additional policy in all other counties. Page 13

14 3. When two standard form owner s policies are issued simultaneously and in the same liability amount insuring both seller and purchaser, the charge for said seller s policy shall be 30% of the General Schedule Rate. C. BUILDER S AND SUBDIVIDER S RATE: Title insurance involving the acquisition and development of land for residential use, residential construction, and sale of newly constructed or renovated one to four family units, residential condominium units and manufactured homes will be rated in accordance with the following schedule: 1. The premium for a lender s policy insuring the development loan and for owner s policies issued following the sale or lease of land developed into subdivided parcels for residential use as described above shall be 40% of the General Schedule Rate 2. When a lender s policy is issued insuring the lien of a mortgage for financing construction, the charge shall be 35% of the General Schedule Rate. There shall be no surcharge for extended coverage on the lender s policy. 3. The premium for a standard coverage owner s policy to be issued following the completion of residential construction as described above will be 27%. The minimum premium for a policy issued under this subsection shall be $ D. EQUITY RATE The charge for an owner s policy insuring full assignment of the seller s interest in a contract of sale wherein the purchaser s interest has been previously insured within five years shall be 70% of General Schedule Rate. E. REORGANIZATION AND JUNIOR MORTGAGE RATE: When a lender s policy insuring the lien of a deed of trust has been issued at the scheduled rate, and a new deed of trust on the same property is executed, and the new loan amount does not exceed $1,000,000.00, the premium for the lender s policy shall be 40% of the General Rate Schedule for standard coverage and 50% of the General Rate Schedule for extended coverage in Chelan, Douglas, Grays Harbor, Jefferson, Lewis, Lincoln, Pend Oreille, Skagit, Stevens, Walla Walla and Yakima Counties. All other counties the premium for extended coverage is 45% of the General Rate Schedule. The minimum premium for standard coverage shall be $ in King, Pierce, Snohomish, Skagit, and Yakima Counties, and $ in all other counties for standard or extended policies. If the loan amount exceeds $1,000,000.00, the charge shall be computed at 45% of the Commercial Rate Schedule in Section E. Page 14

15 Page 15 This section is also applicable to the reorganization of security instruments to individuals, provided a policy of insurance was issued at the time the security instrument was created. This rate reduction may only be combined with the Policies Ordered Electronically and Combination Rate reductions, no other rate reductions will apply. F. GENERAL EQUITY MORTGAGE RATE: When a lender makes an equity loan secured by the residential property of the borrower, and provided the standard coverage policy contains the following exceptions: The charge for a title insurance policy issued in such a manner will be $70.00 for liabilities up to $30,000. The premium for liabilities in excess of $30, shall be: $ 30, to $ 70, $ $70, to $100, $ $100, to $125, $ $125, to $150, $ $150, to $200, $ $200, to $260, $ Policies with a liability amount between $260, and $500, will be rated at $ plus 45% of the General Schedule Rate, on an increased liability basis in the applicable brackets. Policies issued under this section cannot be issued for liabilities in excess of $500, When requested to insure a mortgage or deed of trust securing an equity loan and a mortgage or deed of trust securing a line of credit, both secured by on the same property and recorded simultaneously, the premium will be based on the aggregate liability of the two mortgages or deeds of trust. If the aggregate liability exceeds $200,000.00, each policy shall be subject to separate premiums. In the event the policy issued under this section insures an equity loan from which the proceeds are used to purchase another property (bridge loan), the premium paid for this policy, less $50.00 may be credited towards the owner s policy to be issued by this Company upon the sale of the subject property G. ASSIGNMENT, MODIFICATION OR EXTENSION OF MORTGAGE OF DEED OF TRUST: The charge for a loan policy insuring full assignment, modification or extension of an insured mortgage or deed of trust for the amount of the outstanding indebtedness shall be: (a) 20% of General Rate Schedule, if the original and the new policy are both standard coverage form. Minimum $300.00

16 (b) 30% of General Schedule Rate, if the original and the new policy are both extended coverage form. Minimum $ (c) 40% of General Schedule Rate, if the original policy is standard coverage form and the new policy is extended coverage form. Minimum $ NOTE: Policies insuring assignments of non-insured deeds of trust or mortgages will be issued for applicable General Schedule Rate based upon the unpaid balance of the encumbrance. Liabilities in excess of the previous policy liability shall be charged on the increased liability for the type of insurance issued. H. RENEWAL INSURANCE: The charge for an owner s policy insuring a previously insured owner of a particular property shall be: 70% of the General Schedule Rate for liability up to the amount of the previous policy. Liabilities in excess of the previous policy liability shall be charged on the increased liability according to the General Schedule Rate. I. REINSURANCE: The cost of any reinsurance which may be required by an insured may be added to the charges defined herein. J. EMPLOYEE RATE: No charge shall be made to employees of the Company or affiliated companies, or agents (including employees on approved retirement) for policies issued in connection with the financing, refinancing, sale or purchase of the employee s bona fide residence. Waiver of such charges is authorized only in connection with those costs which the employee would be obligated to pay by established custom as a party to the transaction. K. CHARITABLE OR NON-PROFIT ENTITIES: The premium charged to charitable or non-profit entities shall be 50% of the general Schedule Rate. L. RESIDENTIAL RESALE RATE: Provided title insurance has previously been issued on the property to be insured, the charge for a standard owner s/purchaser s policy to insure the buyer on a sale of an existing one-to-four family residential structure or condominium unit shall be 70% of the General Schedule Rate. This rate reduction may only be combined with the Combination Rate and the Policies Ordered Electronically rate reductions. This rate reduction shall not apply to Adams, Benton, Ferry, Franklin, Grant, Island, Okanogan, Pacific, and Skagit and Yakima Counties. M. EXCHANGE FACILITATORS RATE: When a property is the subject of a real estate exchange, requiring title be taken by an Page 16

17 exchange facilitator, and subsequently conveyed to the ultimate purchaser, the policy to be issued to the exchange facilitator will be rated at the General Schedule Rate. The policy to be issued to the ultimate purchaser upon conveyance by the exchange facilitator will be issued at 10% of the General Schedule Rate, up to the amount of the policy issued to the exchange facilitator, and at the applicable scheduled rate for any increase in the liability. N. SELLER S POLICY: The premium for a standard coverage owner s policy containing a pro tanto endorsement to be issued to the seller in a transaction shall be the minimum premium set forth in the General Schedule Rate. O. COMBINATION RATE: When the Company pays off the monetary liens affecting title through its own settlement services department, the scheduled rate for an owner s policy of title insurance policy shall be reduced by 10% and the scheduled rate for a lender s policy of title insurance shall be reduced by 5%. This rate reduction can only be combined with the Short Term Rate, the Simultaneous Issue Rate, the Residential Resale Rate and the Prior Title Evidence Rate, and shall be applied to the premiums resulting after the application of such reductions. This rate reduction shall not apply to Ferry, Okanogan, Whatcom and Yakima Counties. P. PRIOR TITLE EVIDENCE RATE: The charge for a standard coverage owner s policy to insure the purchaser of a one-tofour family residential structure or condominium unit shall be 90% of the General Schedule Rate provided a copy of the seller s policy of title insurance is submitted to the Company at the time of the application for title insurance. The minimum premium for policies issued under this subsection shall be $ This rate reduction shall only apply to Snohomish, Pierce, King, Island, Skagit, Kitsap, Mason, Adams, Benton, Franklin, Grant, Pacific and Yakima Counties. Q. NON-RESIDENTIAL PRIOR POLICY RATE: If a copy of the seller s or borrower s commitment or policy of title insurance is submitted at the time the order for title insurance is accepted, the charge shall be 90% of the rate as calculated from the above schedule up to $20,000, This rate reduction shall not apply to Ferry, Okanogan and Whatcom and Yakima Counties. R. OWNER S POLICY FOLLOWING FORECLOSURE OR TRUSTEE S SALE: At the discretion of the Company, owner s insurance may be issued to the foreclosing beneficiary or mortgagee, upon request, at no charge up to the liability shown on the Trustee s Sale Guarantee or Litigation Guarantee. Liabilities in excess of the Guarantee liability shall be charged on an increased liability basis. The Company must have issued the Guarantee to qualify for this rate and the foreclosed Page 17

18 encumbrance must have been insured. S. LENDER SOLUTIONS RATE: The charge for a loan policy issued in connection with loan transactions which meet the criteria set forth below shall be as follows: Amount of Insurance Lender Solution Rate $1 - $250,000 $375 $250,001 - $500,000 $475 $500,001 - $750,000 $575 $750,001 - $1,000,000 $675 $1,000,001 - $1,500,000 $775 $1,500,001 - $2,000,000 $825 A. The Lender Solution Rate applies only to loan transactions which meet the following criteria: 1. The lender must enter into an agreement with either the Company s centralized processing units or with an agent authorized by the Company in writing to offer this rate which specifies, among other matters, a maximum cancellation rate and the methods of order opening and tracking; 2. Electronic and paperless order opening and electronic and paperless delivery of the preliminary report or commitment; 3. The loan is not in excess of $2,000,000.00; 4. The loan is secured by a mortgage or deed of trust encumbering real property improved with a one-to-four family residential dwelling unit or residential condominium unit; 5. The loan proceeds must be used to refinance an existing loan secured by the same property; 6. The loan transaction must be initiated and coordinated through a centralized point of contact with the originating lender; 7. Orders must be opened with the Company s centralized processing units or with an agent authorized by the Company to offer this rate; 8. Cancelled orders must not exceed the maximum cancellation rate established by the Company s centralized processing units or by an agent authorized by the Company to offer this rate; and 9. ALTA Short Form Residential Loan Policy must be issued. Note 1: Not applicable to construction loans or loan policies issued concurrently with owner s policies, nor to co-operatives, mobile homes or Native American Lands. Note 2: There is no additional charge for any endorsements customarily issued concurrently with a policy priced pursuant to this Section when requested at the time of policy issuance. Note 3: In order to offer this rate, an agent, and any office thereof offering this rate, must have a multi-state presence, must process transactions in a centralized electronic environment, and must perform the management functions otherwise required of the Company s centralized processing divisions under the provisions of this Section. In addition, Page 18

19 no agent may offer this rate unless expressly authorized in writing by the Company s management to do so for each lender. Note 4: Short Term Rate does not apply. B. Centralized Refinance Rate II The charge for a loan policy issued in connection with loan transactions which meet the criteria set forth below shall be as follows: Amount of Insurance Centralized Refinance Rate II $1 - $250,000 $ $250,001 - $500,000 $ $500,001 - $750,000 $ $750,001 - $1,000,000 $ $1,000,001 - $1,250,000 $ $1,250,001 - $1,500,000 $ The lender must enter into an agreement with either the Company s centralized processing units or with an agent authorized by the Company in writing to offer this rate which specifies, among other matters, a maximum cancellation rate and the methods of order opening and tracking; 2. The loan is not in excess of $1,500,000.00; 3. The loan is secured by a mortgage or deed of trust encumbering real property improved with a one-to-four family residential dwelling unit or residential condominium unit; 4. The loan proceeds must be used to refinance an existing loan secured by the same property; 5. The loan transaction must be initiated and coordinated through a centralized point of contact with the originating lender; 6. Orders must be opened with the Company s centralized processing units or with an agent or underwritten title company authorized by the Company to offer this rate; 7. Cancelled orders must not exceed the maximum cancellation rate established by the Company s centralized processing units or by an agent or underwritten title company authorized by the Company to offer this rate; 8. ALTA Short Form Commitment must be issued; and 9. ALTA Short Form Residential Loan Policy must be issued. Note 1: Not applicable to construction loans or loan policies issued concurrently with owner s policies. Note 2: There is no additional charge for any endorsements customarily issued concurrently with a policy priced pursuant to this Section when requested at the time of policy issuance. Note 3: In order to offer this rate, an agent or underwritten title company, and any office thereof offering this rate, must have a multi-state presence, must process transactions in a centralized electronic environment, and must perform the management functions otherwise required of the Company s centralized processing divisions under the provisions of this Page 19

20 Section. In addition, no agent or underwritten title company may offer this rate unless expressly authorized in writing by the Company s agency management to do so for each originating lender. Note 4: Short Term Rate does not apply. T. POLICIES ORDERED ELECTRONICALLY: Orders for title insurance which are ordered electronically (including facsimile, , an interactive website or a similar online method) shall be discounted 5% of the applicable rate, subject to minimum charges, and not applicable to any portion of liabilities exceeding $20,000, This rate reduction may be combined with the Short Term Rate, Reorganization and Junior Mortgage Rate, Commercial Rate and Residential Resale Rate described herein. This rate is applicable to Island, King, Pierce, Snohomish and Thurston Counties. Page 20

21 SECTION 6 SPECIAL RISKS Title insurance under the following circumstances shall be considered a special risk and shall be rated as follows: A.) TAX TITLE: The charge for insuring any title within three years after the issuance of a deed resulting from an action foreclosing the lien of delinquent real property taxes or a local improvement district assessment shall be: 50% of the amount of the liability under the policy issued with a minimum charge of $1, B.) EXTENDED COVERAGE OWNER S AND LOAN POLICIES: Unless specified otherwise in this Rate Schedule, the additional charge for deletion of the Standard Exceptions outlined below and listed in Schedule B of the Standard Coverage Owner s and Standard Coverage Loan Policies, shall be: 1. Taxes or assessments which are not now payable or which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records; proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public records. 2. Any facts, rights, interests or claims which are not shown by the public records but which could be ascertained by an inspection of the land or which may be asserted by persons in possession, or claiming to be in possession, thereof. 3. Easements, liens or encumbrances, or claims thereof, which are not shown by the public records. 4. Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land, and that is not shown by the Public Records. 5. Any lien, or right to a lien, for labor, material, services or equipment, or for contributions to employee benefit plans, or liens under Workmen's Compensation Acts, not disclosed by the public records. 6. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) Indian treaty or aboriginal rights, including, but not limited to, easements or equitable servitudes; or, (d) water rights, claims or title to water, whether or not the matters excepted under (a), (b), (c) or (d) are shown by the public records. 7. Right of use, control or regulation by the United States of America in the exercise of powers over navigation; any prohibition or limitation on the use, occupancy or Page 21

22 improvement of the land resulting from the rights of the public or riparian owners to use any waters which may cover the land or to use any portion of the land which is now or may formerly have been covered by water. 8. Any service, installation, connection, maintenance or construction charges for sewer, water, electricity, or garbage collection or disposal, or other utilities unless disclosed as an existing lien by the public records. For King, Kitsap, Mason, Pierce, Snohomish, Thurston and Yakima Counties: 35% of the General Schedule Rate for Policies up to $10,000, with a $ minimum for Owner s Policies; and with a $ minimum for Loan Policies. For all other counties: 30% of the General Schedule Rate for Policies up to $10,000, with a $ minimum for Owner s Policies; and with a $ minimum for Loan Policies. For Policies with an Amount of Liability exceeding $10,000,000.00, the charge shall be $1.00 for each incremental increase of $10, The Company reserves the right to require a survey of the land when asked to delete Exception no. 4 of the Standard Exceptions shown above. If in the opinion of the Company a physical inspection of the land is satisfactory, an additional work charge may be assessed for cost of such inspection. The deletion of any other Standard Exceptions shall be further subject to any additional underwriting requirements the Company may impose which, in its judgment, may be reasonably required. C.) SPECIAL EXCEPTIONS INSURANCE: The Company may agree to delete, or otherwise insure against loss by Endorsement, Special Exceptions from Schedule B, subject to any underwriting requirements the Company may impose which, in its judgment, may be reasonably required, for a charge commensurate with the risk assumed. For all counties: 20% of the General Schedule Rate for Policies up to $10,000, with a $ minimum for Owner s Policies; and with a $ minimum for Loan Policies. For Policies with an Amount of Liability exceeding $10,000,000.00, the charge shall be $1.00 for each incremental increase of $10, D.) GAS, OIL, MINERAL INTERESTS: After the local office has received approval to the issue, the charge for issuance of a mineral estate policy shall be 400% of the General Schedule Rate with a minimum of $1, Page 22

23 SECTION 7 GENERAL SCHEDULE RATE C $ Amount of $50,000 or less $ ,001-60,000 $ ,001-70,000 $ ,001-80,000 $ ,001-90,000 $ , ,000 $ , ,000 $ , ,000 $ , ,000 $ , ,000 $ , ,000 $ , ,000 Every $20,000 $ , ,000 $ , ,000 $ , ,000 $ , ,000 $1, , ,000 $1, , ,000 $1, , ,000 $1, , ,000 $1, , ,000 $1, , ,000 $1, , ,000 $1, , ,000 $1, , ,000 $1, , ,000 $1, , ,000 $1, , ,000 $1, , ,000 And for each $20,000 or fraction thereof above $500,000: $40.00 per $20,000 increment up to and including $1,000,000 $27.00 per $20,000 increment up to and including $5,000,000 $20.00 per $20,000 increment up to and including $10,000,000 $12.00 per $20,000 increment up to and including $50,000,000 $11.00 per $20,000 increment up to and including $100,000,000 $10.00 per $20,000 in excess of $100,000,000 Page 23

24 SECTION 8 COMMERCIAL RATE SCHEDULE Title insurance for income, commercial, and industrial properties having a value of $1,000, or more, will be rated in accordance with the following schedule: Liabilities of $1,000, will be charged $3, $1.35 per $1, increment from $2,000, to $5,000, $1.00 per $1, increment from $5,000, to $10,000, $0.55 per $1, increment from $10,000, to $100,000, $0.50 per $1, increment in excess of $100,000, The following rules will apply in the application of this rate: 1. Loan policies which insure the matters described in Section III, Subsection B (Special Risks) will not be subject to the extended coverage surcharge as described therein when issued simultaneously with an owner s policy. Each simultaneously issued loan policy issued under this Section will be subject to a $ surcharge in addition to the simultaneous issue rate set forth above. 2. Where both the Commercial Rate and the Short Term Rate are applicable, the premium shall be 70% of the Commercial General Schedule Rate. This rate reduction may be combined with other rate reductions identified in this section. 3. If a copy of the seller s or borrower s commitment or policy of title insurance is submitted at the time the order for title insurance is accepted, the charge shall be 90% of the rate as calculated from the Commercial Rate Schedule up to $50,000, This rate may be combined with other rate reductions identified in this section.. 4. When the Company pays off the monetary liens affecting title through its own settlement services department, the premium for an owner s or lender s title insurance policy will be reduced by an additional 10% after the calculation of all other applicable surcharges and rate reductions identified in this section. 5. In the event the property to be insured is multifamily having five or more units, the sale of a newly constructed commercial condominium, or the sale of a newly constructed commercial improvement, the premium for standard owner s coverage shall be computed at 40% of the commercial rate and 35% of the commercial rate for an extended coverage loan policy. This rate reduction shall not be combined with any other rate reductions set forth in this schedule. 6. When a lender s policy is issued insuring the lien of a mortgage for financing construction, the charge shall be 35% of the General Schedule Rate. There shall be no surcharge for extended coverage on the lender s policy. Page 24

25 SECTION 9 UCC BASIC RATE SCHEDULE This policy provides coverage to lenders insuring that a security interest created pursuant to Article 9 of the Uniform Commercial Code has attached, is perfected and has priority over other competing interests. This policy should only be issued after an appropriate UCC search has been performed and the national UCC-9 Department has reviewed and approved the transactional documents $ 0 up to $ 100,000 liability $175 minimum $ 100,001 to $ 200,000 $1.70 per $1,000 $ 200,001 to $ 300,000 $1.55 per $1,000 $ 300,001 to $ 500,000 $1.25 per $1,000 $ 500,001 to $ 1,000,000 $1.10 per $1,000 $ 1,000,001 to $ 3,000,000 $0.85 per $1,000 $ 3,000,001 to $ 5,000,000 $0.75 per $1,000 $ 5,000,001 to $ 10,000,000 $0.60 per $1,000 $ 10,000,001 to $ 20,000,000 $0.55 per $1,000 $ 20,000,001 to $ 30,000,000 $0.525 per $1,000 $ 30,000,001 to $ 40,000,000 $0.50 per $1,000 $ 40,000,001 to $ 50,000,000 $0.475 per $1,000 $ 50,000,001 to $100,000,000 $0.45 per $1,000 $100,000,001 to $300,000,000 $0.43 per $1,000 $300,000,001 and above $0.40 per $1,000 NOTE: All rates assume a single site, single debtor/obligor transaction and may include one UCC pre-filing search at the office of the Secretary of State, as well as pre-search filing copies up to 10 pages. The above rates also include the preparation and filing of one required UCC Financing Statement and such services as the Company may provide in order to track the expiration and termination dates of UCC Financing Statement(s) insured under the UCC Insurance Policy for which the rate is paid. No short-term rate applies. Mixed Collateral Transactions: For any transaction where both real property and personal property secure the same indebtedness and separate policies of title insurance are simultaneously issued by the Company as to real property and personal property, the premium payable for the policy insuring a security interest on personal property shall be reduced by 10%. This provision shall not apply to policies issued to insure manufactured or mobile homes. Page 25

26 SECTION 10 ENDORSEMENTS This section lists Endorsement the Company may agree to issue, subject to any underwriting requirements that it may impose, which in its judgment may be reasonably required. All the Endorsements listed in this Section modify coverage of the Policies I some manner. Some examples include those that add coverage, limit coverage, clarify coverage, delete Standard or Special Exceptions, or add additional insureds. Endorsement Number Owner s Policies Lender s Policies ALTA Form 1-06 N/A No charge Street Assessments ( ) ALTA Form 2-06 N/A No charge Truth in Lending ( ) ALTA Form %, min. $100 10%, min. $100 Zoning - Unimproved Land ( ) ALTA Form %, min. $250 15%, min. $250 Zoning Completed Structure ( ) ALTA Form %, min. $250 15%, min. $250 Zoning Land Under Development ( ) ALTA Form 4-06 N/A No charge Condominium (2-3-10) ALTA Form N/A No charge Condominium ( ) ALTA Form 5-06 N/A No charge Planned Unit Development (2-3-10) ALTA Form N/A No charge Page 26

27 Planned Unit Development ( ) ALTA Form 6-06 N/A No charge Variable Rate Mortgage ( ) ALTA Form N/A No charge (but issued only at Date of Policy) Variable Rate Mortgage Negative Amortization ( ) ALTA Form %, min. $50, max. $250 No charge Manufactured Housing Unit ( ) ALTA Form N/A $25 Manufactured Housing Unit Conversion: Loan ( ) ALTA Form $25 N/A Manufactured Housing Unit Conversion: Owner s ( ) ALTA Form N/A No charge Environmental Protection Lien ( ) ALTA Form N/A No charge Commercial Environmental Protection Lien ( ) ALTA Form 9-06 N/A No charge Restrictions, Encroachments, Minerals Loan Policy ALTA Form % N/A Covenants, Conditions and Restrictions Unimproved Land Owner s Policy (4-2-12) ALTA Form % N/A Page 27

28 Covenants, Conditions and Restrictions Improved Land Owner s Policy (4-2-12) ALTA Form N/A 10% Covenants, Conditions and Restrictions Loan Policy (4-2-12) ALTA Form N/A 20% Private Rights Loan Policy (4-2-13) ALTA Form N/A 10% Restrictions, Encroachments, Minerals Land Under Development Loan Policy (4-2-12) ALTA Form % N/A Covenants, Conditions and Restrictions Land Under Development Owner s policy (4-2-12) ALTA Form Private Right Owner s Policy (4-2-13) ALTA Form Restrictions, Encroachments, Minerals Current Violations Loan Policy (4-2-13) ALTA Form N/A $75 per Loan w/o Vested Owner; Assignment (2-3-10)? ALTA Form Assignment and Date Down (2-3-10) N/A 30%; min. $200; max. $500 ALTA Form N/A 35% on Unpaid Balance; Page 28