Underwriting

Our client, a nationwide institutional property holder entered into a contract to purchase an apartment complex in Washington, D.C., the properties jurisdiction was subject to the Tenant Opportunity to Purchase Act (TOPA). TOPA was designed to protect affordable housing by giving renters the right to purchase if the property goes up for sale. We worked with our client to understand the process and guidance as to the compliance of the local statute with particular concern as to how to eliminate any potential renters to exploit errors in compliance in order to hold up the sale and proceed with a title commitment for purchase.

We work with multiple counsels to structure a strategy. The transaction was structured as a ground lease to the developer who in turn will own and build the project, then convey/sublease air-rights parcels. In so doing, the initial ground lease is not subject to transfer tax, nor is a later sublease, as IL statutes subject only assignments of lease to real estate transfer tax. Furthermore, the IL Plat Act does not apply to leasehold property so the resultant “vertical subdivision” may be developed without first having to submit a subdivision plat for departmental approvals and recording.

Our office handled a Chicago purchase and construction loan transaction that involved the transfer of development rights from an adjacent property owner to our proposed insured. In so doing, we were able to insure, as a separate parcel in Schedule A, the development rights for additional dwelling units and floor area ratio, and to insure in an ALTA 3.0 Endorsement against loss or damage if the land was not classified as a Planned Development designating a maximum number of dwelling units to include those enumerated within the transferred development rights.

We were able to resolve an underwriting issue for our client who was not able to obtain title from an alley vacation for the City’s ordinance had not been passed. The client had to open a construction loan and would lose its commitment unless the title policy covered the total property including the proposed alley vacation. We were able to provide a solution that allowed the client to open the construction loan within the time sensitive construction loan requirements for a full title commitment.

Stewart was working on a large construction project that had a hard deadline for closing.  One of the items our client needed was a partial release of the existing mortgage.  The existing lender required a date down to their policy in order to provide the release, but due to a recent subdivision and other recordings, the underwriter was taking too long to deliver and was causing a delay.  Overnight we were able to issue a “piggyback” endorsement to their existing loan policy so closing could move ahead as scheduled.

Our client was rejected in connection with a UCC policy in the middle of a closing where we were not the underwriter, we were able to substitute Stewart Title’s UCC policy within 24 hours which allowed the closing to schedule on time.

We’ve insured multi-state, large, single family homes portfolios and provide a simplistic and unique approach to premium cost and administration of acquisition, financing, and title needs.