March 25, 2020
With the anticipation of continued marketplace disruptions due to the coronavirus (COVID-19), we have important information for members doing business in Vermont.
The following underwriting guidelines and protocol address closure of a municipal office such that it is not accessible for records searching and/or recording. The bulletin does not apply to complete municipal records that are available on-line . Note: You may encounter other situations that are not specifically addressed below. If you have a question about insuring a transaction, please contact Andy Mikell or Liz Smith for underwriting assistance.
CATIC will insure any gap created by the inability to timely update and/or the inability to record an instrument due to the closure of a Municipal Office. In most cases, normal underwriting guidelines continue to apply.
CATIC authorizes the issuance of all forms of Loan and Owner Policies insuring any gap created by the inability to timely update and/or record if:
  • A title examination was completed within 20 days of closing. NOTE: For periods longer than 20 days, please contact the VATC office for authorization;
  • The municipal office is closed for record searching, is not accepting documents for recording, and/or is not indexing documents received for recording;
  • The issuing Agent’s title examination or inquiries do not disclose any adverse matters or a recent history of disputes or economic distress, evidenced by, for example, a recording of involuntary liens (e.g., Attachments, Executions, Federal or State Tax Liens, Lis Pendens, Notice of Bankruptcy, Notice of Foreclosure, Tax Sale, Multiple Mortgages); and
  • The issuing agent delivers documents for recording immediately after closing by placing them in the U.S. mail, or other form of delivery, addressed to the municipal clerk.
  • To protect our issuing Agents and the Company, it is recommended, but not required that the Seller/Borrower execute the standard Owner Affidavit found in PrepExpress®;
  • The Date of Policy shall be the date and time of disbursement of the funds;
  • Upon the re-opening of the Municipal Office, the issuing Agent shall conduct a post-closing update. If such update discloses any matters that affect the Insured’s interest, the issuing agent shall promptly notify the Company.
VATC and CATIC will continue to monitor the situation and may send out revisions to these guidelines as circumstances warrant. 
Please continue to check out our dedicated webpage for COVID-19 information and guidance, on a regular basis. We will be updating the material as we learn of new developments.