Underwriting

Our history of accomplishment is long and varied. Whether you need to execute a complex, multi-state transaction, navigate local regulations, or meet a development deadline, we've got the experience you need to get the job done.

The Issue

Nationwide Institutional Property Holder

Underwriting Solution

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.

The Issue

Ground Lease

Underwriting Solution

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.

The Issue

Chicago Construction Loan

Underwriting Solution

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.

The Issue

Construction Loan

Underwriting Solution

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.

The Issue

Development Deadline

Underwriting Solution

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.

The Issue

UCC Policy

Underwriting Solution

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.

The Issue

Portfolios

Underwriting Solution

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.