I have a client who wants me to address the certification to "XYZ Corp. or its nominee." I am reluctant to use the words "or its nominee", since I have absolutely no idea who that might be. I also don't understand "or" instead of "and". What if the "nomination" occurs five years from now? Am I being overly cautious? Why don't I just certify it to everyone? What is the purpose of naming specific entities?
So the loan can be sold and liability can be spread at little or no cost. Check with your e&o to see if they will insure that type of language. Some will and some won't. It extends your liability...just make sure you are covered. Good business practice also lends itself to keeping your liability at a minimum.
If they are asking you to replace the language then the answer should be NO. Alta has it's own language. If you don't meet the minimum then it ain't an alta.
Actually, the certification required of all ALTA/ACSM Land Title Surveys starts out “To (name of insured, if known), (name of lender, if known), (name of insurer, if known), (names of others as negotiated with the client):
Note that the last parenthetical is “…names of others as negotiated…”
Your Land Title Survey (LTS) bears the date of your field work. It bears the information required in the standards whether it is submitted to XYZ Corporation of ABC Company or KLM Industries.
The fact that the load is sold by XYZ to ABC or KLM is of no consequence to you. As long as your survey met the standards and was properly done as of the date shown on the survey for your field work, what’s the problem?
If there’s an error on your survey, you’re on the hook to the people you have certified the survey to and to those who could reasonably be expected to rely on the information shown on your survey regardless of whether or not they were specifically named.
If it’s really such a big deal about the “…or it’s nominee…”, tag them for more money up front. I know someone who CLAIMS to tack on an extra $500 for every additional name. Remember, what the standards REALLY say is that the names of others are as negotiated! So, negotiate!
If you’re not interested, give them my contact info.
They are asking you to extend your liability to an unknown party of their choosing (as "who the next loan may or may not be with or who they may sell to, etc).
The word "or" means that either part listed has the authority to control the property's interests.
The term "instead of" means that someone or something else can be placed in the text to add to your liability.
I am with Craig, use the certification as outlined.
Personally, I only certify to who is paying me. If their name is not on the order form, it don't make the final plans.
Previous discussed in the following threads.;-)
[msg=54537]54537 - Why Not "Successors and/or Assigns"?[/msg]
[msg=52825]52825 - ALTA Certification (Successors and/or assigns question)[/msg]