Indiana Commercial Connection

2019 S P R I N G

Indiana

COMMERCIAL CONNECTION AN INDIANA AGENCY NEWSLETTER | ISSUE 3

IN THIS ISSUE

All Things COMMERCIAL

1

All Things Commercial

2

Survey Says

By: Matt Russell, VP, Indiana State Manager

3

Start Your Engines: What is a Construction Pre-Start?

Summer is almost upon us and it is time to focus our attention on title insurance and All Things Commercial. This can be overwhelming at times, and causes us to wish we were sitting pool side, refreshment in hand while our favorite tunes (relaxing or not, your pick) are playing on the radio. While commercial transactions are similar to residential transactions because they involve the transfer of property from one party to another, commercial transactions have their own quirks. They generally involve a larger financial investment, complex ownership entities and uses, and extensive research to make sure the insured interests are conveyed properly, free and clear of any encumbrances. This edition of Indiana Commercial Connection focuses on topics dealing with those quirks including: access issues, survey matters, questionable owner authority, determining whether construction projects have already started and Q&As on commercial concerns and issues.

The Indiana Commercial Connection is brought to you by the First American Indiana Agency Underwriting Team with contributions from two special guests. We hope you find this newsletter both informative and enjoyable. If you have any comments, questions or topic suggestions for future newsletters, contact any member of the Indiana Agency Team or email underwriting.in@firstam.com.

4-5

Don’t Just Take Their Word for It: You Need to Respect Authority

5

Commercial Real Estate Market Facts

6

Staying a Step Ahead

7

The Road to Claims

8

Commercials Q&A

9

Roadmap of ALTA 28 Endorsement Series for Indiana

10

Q1 2019 Financial Strength

11

Agent Advantage

12

Indiana Agency Team

We are committed to your success and thank you for choosing First American Title as your trusted industry partner.

The information contained in this document was prepared by First American Title Insurance Company (“FATICO”) for informational purposes only and does not constitute legal advice. FATICO is not a law firm and this information is not intended to be legal advice. Readers should not act upon this without seeking advice from professional advisers. First American Title Insurance Company makes no express or implied warranty respecting the information presented and assumes no responsibility for errors or omissions. First American, the eagle logo, First American Title, and firstam.com are registered trademarks or trademarks of First American Financial Corporation and/or its affiliates. ©2019 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF

Survey Says By: Mary Slade, Indiana State Underwriting Counsel

The professional work of surveyors disclosed in various survey products aids with the issuance of numerous endorsements. Sometimes, the customer’s surveys also shed light on a common problem or a new risk for evaluation. Below are a few of the survey says moments Indiana agents and the First American Indiana Underwriting Team have collaborated on which resulted in successful closings and solutions.

1. Where Did the Buildings Go? Survey says:

The title company needed an amended overlimits approval because of the customer’s new endorsement requests.

The agent submitted a revised ALTA/NSPS survey with the amended overlimits request. When the underwriter looked at this survey, the surveyor referenced a re-inspection date of the land and a survey note of “buildings demolished.”

While comparing the revised survey to the survey submitted with the original overlimits request, the underwriter discovered five buildings had been demolished in the five weeks between the surveyor’s first and the recent inspection dates of the site.

Since the land was in the throes of constant change as an active construction site, the underwriter and agent reviewed which survey-related endorsements needed the date of policy language changed to one of the inspection dates of the survey. They also evaluated with the customer what made sense for the ALTA 25 Survey Endorsement with its “the Land as described in Schedule A to be the same as that identified on the survey.” Borrower, title agent, and underwriter also worked together on understanding and reducing the risk of mechanic’s liens competing with the lender who wanted incremental mechanic’s lien coverage with the ALTA 32 and ALTA 33 Endorsements.

2. The Road to Where? Survey says:

A large tract of land was platted for a wide variety of commercial and residential development. The lender wanted an ALTA 17-06 Access Endorsement in relation to the future 12-acre site of a large apartment complex and the lender’s construction mortgage. This endorsement includes loss or damage coverage for the failure of the street identified in the endorsement to be physically open and publicly maintained, as well as loss or damage coverage where the insured does not have a right to use the existing curb cuts and entries of a street identified in the endorsement. In comparing the recorded plat and the ALTA/NSPS survey, the agent discovered the physical curb cuts or access point onto the limited access county road was in a different location than how the access point was depicted on and approved by the county with the recorded plat. In researching other physical access options, the underwriter discovered at the site (confirmed by the final survey) that one of the plat’s publicly dedicated streets only had a portion of the street’s infrastructure installed. The installed portion of the street did not physically touch the 12-acre site.

After reviewing the survey’s access information and options with the underwriter, lender’s counsel agreed to withdraw

First American Title | Indiana Commercial Connection | Spring 2019

the request for the ALTA 17-06 given the legal access coverage of the ALTA 2006 loan policy along with an easement provided by the developer over the developer’s land. This solution also provided the parties time to address the limited access concern with the county and to address the further improvements to the platted street.

3. Animal, Vegetable, or Mineral? Survey says:

The GIS and the county property card for the subject land presented an 18-acre unimproved dirt tract sandwiched between a boulevard and U.S. 31 with a history of multiple tax parcel consolidations and splits. However, the commitment’s legal description was for a smaller tract. The Google.com map results depicted a large dirt tract, but with a blue and white shopping bag icon floating above a portion of the tract along with the name of a big box store. If you take the “man on the street” icon for a little walk to get a street view of the dirt tract, the Google.com map result transforms to September 2018 Google images with a freestanding, big box store open for business.

The mystery surrounding these aerial images was solved and changed when the customers produced a boundary survey of the 2.8-acre subject land located in the interior portion of that large 18-acre parent tract. Instead of being adjacent to the boulevard, the boundary survey depicted the property as landlocked with a legal drain meandering the west property line. The boundary survey disclosed a clue of ongoing construction activity labeled across the subject land and two clues along the north property line: 1) “building currently under construction, on line” and 2) “building ‘big box store’, on line.” The underwriting team and the agent worked together to reduce the risk of mechanic’s liens for pre-closing and gap work, service providers, and supplies.

The updated commitment included an exception for the 75-foot maintenance and access rights for the legal drain afforded under IC 36-9-27-33. Research of the recorded plats, deeds, and development agreements discovered two access easements that benefited the 2.8-acre tract. The commitment was modified to insure easement interests as new Schedule A parcels for providing legal access from the subject fee parcel to the boulevard with the search and exam results for the new easement parcels included in Schedule B. The commitment also had a new exception for the shared roof, infrastructure, and support where the big box store and the new construction came together on the north property line. The underwriter and agent also reviewed which survey-related endorsements were not addressed by a boundary survey and any impact by the ongoing construction to date-sensitive endorsements.

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Start Your Engines: What is a Construction Pre-Start?

By: Kelly Quack, Indiana Underwriter

When transactions include a construction project, how do you determine if there is a construction prestart? The answer is not always so easy!

Do not be shy when discussing with your client this important aspect of title insurance with a construction project.

Some questions to ask your client may include: • •

Is there an engineer or architect providing plans for the project?

Will a new ALTA/NSPS survey or new plat be part of this project?

IC 32-28-11-1 provides that “registered professional engineers, registered land surveyors and registered architects may secure and enforce the same lien that is now given to Contractors, subcontractors, mechanics’ journeymen, laborers, and materialmen under IC 32-28-3” as supplemented. Most projects with construction loan financing include the involvement of these professionals.

Because their ability to file a mechanic’s lien for unpaid services can be considered a pre-start, verification of payment to those providers or payment at closing is essential.

Other factors and resources to consider with a pre-start risk are: • Has an improvement been demolished? Review the county GIS image and property record card of the tax parcel(s) for clues of any existing improvements and compare your findings to the new survey to verify the improvements are still present.

• Has infrastructure, such as sewers, drainage and streets, been located? Review the new survey for sewer caps, roads or utility presence noted.

• Is there construction fencing in place?

First American Title | Indiana Commercial Connection | Spring 2019

• • •

Are there any supplies delivered to the location?

Is there heavy equipment or a construction trailer located on the premises?

Is clearance of the land ongoing or completed?

Fencing, supplies, equipment and land clearing verification may best be obtained by the tried and true “road trip” with photos of the site visit findings. Photos of the site when the initial commitment is issued and again prior to closing is a great way to document your file for physical changes at the work site.

IC 32-28-3-1 includes defined tasks that when provided by “a contractor, a subcontractor, a mechanic, a lessor leasing construction and other equipment and tools, whether or not an operator is also provided by the lessor, a journeyman, a laborer, or any other person performing labor or furnishing materials or machinery, including the leasing of equipment or tools” utilized for erection, alteration, repair or removal of an improvement, earth moving… may have a mechanic’s lien separately or jointly.

The question to your client if there is a pre-start of construction can include many facets the client may not take into consideration, so your follow-up questions or road trip to the site is critical to understand the project being insured. The pre-start may be based upon requirements in a purchase agreement, lender-required remedial work, the nature of the site’s business, or a customer utilizing equity funds with project prior to utilizing loan funds. The eleventh-hour before-closing surprise of a pre-start can be stressful for all parties. Be prepared, especially when the real estate is owned by the borrower prior to closing a construction loan; they have possession and sometimes utilize their own funds to start the project.

Page 3

Don’t Just Take Their Word for It: You Need to RESPECT AUTHORITY By: Mike Duffy, Indiana Underwriting Counsel

The recent case of GO Properties, LLC vs. Ber Enterprises, LLC, 112 N.E.3d 200 (2018), reh. denied, is a stark reminder of the importance of verifying the authority of individuals purporting to act on behalf of a company, corporation, or partnership.

GO Properties (GO) was an Indiana LLC whose two members (Olicorp and Gracie Properties) were solemember LLCs. Olicorp was designated the Member Manager of GO and had the sole authority to sign agreements and other instruments on behalf of GO without the signature or consent of any other member.

Gracie Properties had one sole member, Phillips. On August 1, 2013, Phillips submitted two filings to the Indiana Secretary of State. One filing changed GO’s registered agent to Gracie. The other filing changed GO’s principal address to Phillips’ home address. Both filings referenced Phillips as the owner of GO. Phillips sold four of GO’s properties on August 13, 2013 to Elden Investments. The title company’s owner indicated the only authority information for GO with the title company was the August 1, 2013 filings and Phillips’ representations to the title company that Phillips could act on behalf of GO. Two years later, GO filed suit including to quiet title to the August 13, 2013 sold properties. The trial court held that because the issue was Phillips’ authority to execute the deeds as opposed to falsification or forgery, the deeds were merely voidable. Title should be quieted in any bona fide purchasers. GO appealed to the Indiana Court of Appeals.

The Indiana Court of Appeals explained that, “[t] o find that a person had apparent authority to act for the principal, it is essential that there be some form of communication, direct or indirect, by the principal, which instills a reasonable belief in the mind of the third party…

Statements or manifestations made by the agent are not sufficient to create an apparent agency relationship.”

The court found that “GO Properties made absolutely no direct or indirect statements indicating that Phillips

had authority to act on its behalf… [T]he documents filed

by Phillips with the Secretary of State do not amount to statements made by GO Properties that create an apparent agency relationship.” Because no formation and authority documents of GO supported that Phillips had any actual or apparent authority to sell GO’s properties, the Indiana Court of Appeals ultimately voided the original sale of the properties and the subsequent conveyances of the properties. Between the August 13, 2013 original sale and December 20, 2018, the county property cards reflected the following transfers of the four properties: Property 1: Four Transfers Property 3: Seven Transfers Property 2: Three Transfers Property 4: Eight Transfers

In early February 2019, the trial court quieted title to the four properties in favor of GO. The Indiana Court of Appeals’ case also disclosed that GO provided LLC underwriting standards of title insurers, which included a requirement for a copy of the LLC’s operating agreement, any and all amendments thereto, and a certificate that the operating agreement is a true and correct copy of the agreement in effect at the time of the sale. The Indiana Court of Appeals stated, “[t] his practice is wise because it protects both the other members of the LLC and all future purchasers of the property. Had this practice been observed in this case, neither the original nor subsequent transactions would have occurred.”

What is the lesson title agents and underwriters should learn from this unfortunate event? It is essential to require and review the authority and formation documents of any artificial person (corporation, company, partnership) selling, buying, or mortgaging property.

These documents include articles of organization or incorporation, bylaws, operating or partnership agreements, any amendments, and resolutions approving the sale, purchase, or mortgage. Pay special attention to “nesting doll” situations where a corporation, company, or partnership serves as a member, manager, or partner in another entity; you will need to review the authority and formation documents of the entities at both layers.

If your customer is very resistant to providing you with Cont. on next page

First American Title | Indiana Commercial Connection | Spring 2019

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Don’t Just Take Their Word for It: You Need to RESPECT AUTHORITY documentation or claims that none exists, this could be a red flag for potential fraud or a problem with the legal condition of the entity.

A review of the entity’s business status (existence, good standing, or dissolved status) on the Indiana Secretary of State’s website (https://bsd.sos.in.gov/ publicbusinesssearch) or another state’s secretary of state or business division sites is critical. If an entity is administratively dissolved or lacks an operating

agreement, for instance, the entity may have options to proceed with the proposed transaction. Title agents should reach out to the Indiana underwriting team for guidance if they have a specific question or concern about a proposed signer’s authority.

Put simply, be proactive and diligent in researching and confirming a signer’s authority; your search and respect for authority can avoid potential heartache down the road.

C O M M E R C I A L R E A L E S TAT E M A R K E T FA C T S 2018 COMMERCIAL REAL ESTATE MARKET COMPOSITION

PRICE

PER SQUARE FOOT/UNIT YOY TRANSACTIONS

16% 54%

15% 6% 9%

$396 billion in total CRE

11% price increase for apartments

acquisitions in the first three quarters of 2018

.0107%

11.4% increase in total acquisitions

slight increase of $2 for retail space

over the same period in 2017

US deal volume in 3Q 2018 highest since 4Q 2015

18% price increase for overall office space

10% price increase for hotels

17% RETAIL

OFFICE

INDUSTRIAL

HOTEL

APARTMENT

price increase for industrial space

Data pulled from Expectations and Market Realities in Real Estate 2019 - Uncharted Territory Published by Deloitte. | National Association of REALTORS® | Situs RERC®

First American Title | Indiana Commercial Connection | Spring 2019 AMD: 03/2019

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Staying a

STEP AHEAD

By: Larry Buster, VP, Associate Senior Underwriter

Whether watching the Super Bowl, NCAA March Madness Basketball Tournament or the World Series, there always seem to be one team that is one step ahead of their competition.

That same competitive attitude needs to be adopted to defeat fraudsters who are out to perpetrate fraud. It seems like every time a strategy is implemented to catch fraudulent behavior, the perpetrators come up with another scheme to avoid detection. First American Title and its agents absolutely need to be a step ahead, make game-time adjustments and anticipate how to counter their every move.

One of the latest schemes we are combating is Entity Hijacking, a method used to steal property that belongs to someone else. The strategy is simple. Instead of going to the trouble of forging a document, utilizing a false identification or duplicating a notary stamp, the fraudster merely inserts themself as a member of the entity that owns the property and then sells or mortgages it. How do they do it? Fraudsters will target a suitable property already owned by an entity, like an LLC. Then, they only need to convince the title company they are the managing member with authority to sell or mortgage.

One way of doing this is to give the title insurance company a falsified operating agreement. This is easy to do because the operating agreement, which defines the authority of its members, does not need to be recorded or filed with the Secretary of State.

Another method being utilized is filing an Amendment with the Secretary of State documenting a change in the membership of the LLC. Many states require a current Statement of Information documenting who the current members are to be filed annually or every other year. It is not difficult for a fraudster to file this type of amendment and put themselves as the managing member with authority to conduct real estate transactions.

A good practice to adopt would be making it a required procedure to review the amendments at the Secretary of State to see the chain of changes. If recent amendments or recent Operating Agreements are shown, this could be a sign a fraudster has inserted themself into the LLC. To protect First American Title, your agency and parties to the transaction, documentation of any resignations or

First American Title | Indiana Commercial Connection | Spring 2019

revisions may be required to authenticate the changes.

Here are some inquiries you can make when you suspect fraudulent activity: • Compare the date of the Operating Agreement to the date the LLC was formed. If the Operating Agreement contains a significantly different date, you need to ask why.

• Check the information with the Secretary of State closely. Are amendments to the LLC recent?

Perhaps require verification directly from the resigned member that they have actually signed.

Recent changes are suspect.

• Know your transaction. Does this transaction appear to be in the normal course of business?

Does it involve an unencumbered property? Do the members appear to be cashing out? Are proceeds going somewhere unusual or being paid to someone unknown to the transaction? Are proceeds being sent to an account that is not in the name of the entity selling the property? Does the transaction appear to be for full value?

• Does an uninsured deed appear in the chain into or out of the entity? If so, consider this suspicious and require uninsured affidavits to be executed in front of a First American Title notary.

• Be aware of and familiar with serial fraudsters, individuals or entities of concern who have been identified in underwriting communications you receive.

• If you have a suspicion, attempt to visually compare signatures on the documents you have received against other trusted documents, including recorded documents. Do the signatures look consistent? Are they the same parties you have been dealing with?

• Carefully observe and research the principals. Are there any apparent disputes, lawsuits, divorces, bankruptcies, or a recent death among the membership?

These questions need to be asked, particularly when dealing with an entity customer with which you are unfamiliar. Recognizing red flags in the chain of title will help prevent potential claims in the future.

In sports and in business, knowing your opponent well and keeping a step ahead is a winning strategy!

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The

ROAD to CLAIMS

By: Sarah Frano, VP, Corporate Underwriting

Last summer I investigated a claim regarding a lack of access. The insured property was at the dead end of a dirt road in a rural area on the outskirts of a major metropolitan city. According to the Insured, the neighbors claimed the Insured had no easement right to use the road. Having no other physical way to enter or exit the property, the Insureds continued to use the dirt road to access the property. Tensions escalated to the point of reported incidents of neighbors shooting at the Insureds as they drove by, objects placed in the road to puncture tires, and the placement of locked fences across the road.

Aside from trespassing through an adjoining vacant parcel, the Insureds were essentially physically blocked from access.

After examining the documents of record, I concluded the hostile neighbors were correct. The Insured had no recorded right to use the road. The Insured’s legal access was in an entirely different location that was not being utilized. Why not use this route? The Insured said the county had installed a locked gate across the road.

A literal roadblock! Seemed odd in this rural area, so I inquired with the County. They confirmed they had installed the gate and declined to remove it. The aerial images did not reveal any topographical or flood control issues that might necessitate a gate for public safety. I felt like I was missing something that I could not learn behind my desk. It was at that point I decided to drive to the property and see for myself. And wow did I! The neighborhood’s marquee sign revealed the Insured’s property was inside a nudist colony! After a quick

First American Title | Indiana Commercial Connection | Spring 2019

investigation, complete with two punctured tires thanks to the hostile neighbors’ road traps, I discovered the claimant could access another easement out the backside of their property. However, the adjacent neighbors were not part of the nudist colony and adjustments would need to be made to the neighborhood privacy fencing. I now understood the County installed the gate to prevent gawkers or unsuspecting members of the public from driving through the neighborhood.

This claim illustrates a reoccurring theme where the legal access on paper does not match the historically used access. I typically had these claims in rural areas, but urban areas are not immune regardless of property type. Usually, the access easement was recorded when the property was originally subdivided or planned, but after development either the easement was never utilized or abandoned for a more favorable route. It may be a physical condition that makes access impractical, impossible or too expensive to build or maintain or it may be a personal preference to use a different route.

Preferred access routes are not apparent from recorded documents, but neither is the non-use of the legal access route.

The habit of looking at an aerial image during your transaction can help prevent an access claim. County GIS mapping systems, Google and Bing are great for aerial images. Ask yourself: does the legal access appear to be in the same location as what is currently being used? Mailbox location and/or mailing address are also good indicators of the historically utilized access route.

Please reach out to your Indiana Underwriting Team for additional options if you have access concerns.

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COMMERCIAL By: Mary Slade, Indiana State Underwriting Counsel

Q

While examining the search package, with the county’s geographic information system (GIS) data, I noticed an airport across the access road from our customer’s property. Nothing in the search results mentions the nearby airport. Is there an exception that should be raised in the commitment and policy because of the nearby airport?

A

The Federal Aviation Administration (FAA) regulates the United States airspace rights of avigation easements as well as the public’s right to travel though navigable airspace. 49 U.S. C. § 40103.

The following exception can provide notice of air, flight, and noise easement rights due to aircraft and the nearby airport: Perpetual air or flight easement, sometimes referred to as avigation rights, in and through the air above the land described herein, together with the right to cause in said air space such noise as may be inherent in the operation and navigation of aircraft.

Q A

Lender requests an ALTA 3.1 endorsement on the loan policy for their commercial construction loan. However, the land is unimproved. What should I do?

This endorsement request presents an opportunity to have a conversation with the customer about their zoning coverage needs.

Discuss with the lender’s counsel or representative whether they are concerned about zoning with the current unimproved land or the zoning in terms of improvements from an upcoming construction project. Consider whether the project’s plans are electronically overlaid or cadded with ALTA/NSPS survey information to determine the viability of meeting the issuing standards of an ALTA 3.2-06 Zoning - Land Under Development Endorsement. From the ALTA 3.0-06 to the ALTA 3.3-06 and ALTA 3.4-06 approved

by ALTA in December 2018, the “Date of Policy” plays a key role in the coverages in the ALTA 3 Zoning Series of Endorsements. If a pre-start of construction has occurred before the recording of the mortgage, it is difficult to establish the state of improvements on the date of policy.

Talk to your Indiana First American Title underwriting team about options for zoning endorsements for pre-starts and construction loans which will meet your customer’s needs.

First American Title | Indiana Commercial Connection | Spring 2019

Q

We discovered the loan policy is not for the purchase of a building on a medical campus, but for a leasehold involving an existing tenant on the campus. However, the search disclosed a lease for a different tenant. What items should we consider with issuing a revised commitment?

A

Reevaluate the setup of Schedule A in terms of whether you reflected a proposed leasehold loan interest as well as the correct legal description for the leasehold interest. How do those changes correlate with the lease information disclosed by the leasehold borrower/tenant and the lender? Evaluate with the customers whether the current transaction will be related to a new lease, a sub-lease, or perhaps an assignment of the lease rights found in the search.

When reviewing your Schedule B-I requirements with the results of your evaluation, add a requirement for the leasehold interest to be recorded either as the full lease, a memorandum, or an assignment as required under Indiana law.

Evaluate your landlord estoppel requirements so the landlord addresses all of the following: a. the lease is in full force and effect; b. disclosure of any defaults, claims, or violations of the lease terms; c. the current status of lease payments due to the landlord; d. the parties executed any lease amendments or modifications; and e. an authorized landlord consent to the proposed mortgage unless already addressed by the lease.

If the legal description for Schedule A was modified, consider how your search may need to be updated due to that alteration. Be careful of deeds, parent tract or campus declarations, commercial plats, or other leases containing various provisions affecting your leasehold tract from use restrictions, common areas, access and development requirements. Review the issuing standards of the ALTA 13.1-06 Leasehold – Loan Policy Endorsement that modifies an ALTA 2006 Loan Policy to provide leasehold loan policy provisions.

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Roadmap of ALTA 28 Endorsement Series for Indiana Endorsement*

ALTA 28.0-06

ALTA 28.1-06

ALTA 28.2-06

Identify easements related to the endorsement coverage.

Identify “Improvement” related to the endorsement coverage.

List encroachment(s) excluded from the endorsement coverage.

List encroachment(s) and/or easement exception(s) excluded from certain enforced removal coverage Damage to Land’s existing building(s)*

Loss or damage from non-Schedule B encroachment where defined “Improvement” encroaches onto an easement.* Loss or damage from non-Schedule B encroachment where defined “Improvement” encroaches onto adjoining property.* Loss or damage from non-Schedule B encroachment where adjoining property’s defined “Improvement” encroaches onto the Land.* Enforced removal or alteration of Land’s existing building(s) due to easement use or maintenance rights* Enforced removal or alteration of a defined “Improvement” encroaching onto the Land’s easement compelled for use or maintainenance rights of that easement.* Enforced removal or alteration of defined “Improvement” encroachings onto adjoining property.*

*Endorsement availability is subject to the issuing standards of First American Title Insurance Company and the form coverages are also subject to the files and rates filed and approved with the Indiana Department of Insurance.

First American Title | Indiana Commercial Connection | Spring 2019

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Billions Billions

$6.7

$5.7 $6.2

$6.2B

$5.2 $5.7

$5.7B

$4.7 $5.2 $4.2 $4.7 $3.7 $4.2 $3.2 $3.7 $2.7 $3.2 $2.2 $2.7 $2.2

First American Title | Indiana Commercial Connection | Spring 2019

$6.2B

$6.2 $6.7

$5.7B

$4.5B $4.5B

$3.1B $3.1B

2012

2013

2014

2015

2016

2017

2018

2012

2013

2014

2015

2016

2017

2018

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AGENT ADVANTAGE

Put Our Advantage To Work For You First American Title Agent Advantage offers solutions throughout the real estate transaction to assist title insurance agents in optimizing productivity and operational efficiency. Take full advantage of this powerful resource to streamline processes and gain valuable time to spend with your customers.

1

2 RECEIVE TITLE ORDER

3 COMPLETE TITLE SEARCH/ABSTRACT

4

TITLE COMMITMENT

3.1 Initial Examination and Create Preliminary Commitment

3.2 Estimate Clear to Close Date

3.3 Complete Curative

COMPLETE CLOSING PACKAGE 4.1 Schedule Closing and Communicate Date/Time to All Parties

5

4.2 Coordinate Notary for Closing

4.3 Obtain 3rd Party and Miscellaneous Documents for Closing

6 CLOSE LOAN WITH BORROWER

4.4 Receive Lender Closing Instructions

7 BALANCE AND DISBURSE WIRES/CHECKS

4.5 Prepare CD/Settlement Statement

4.6 Obtain CD/Settlement Statement Approval

RECEIVE FINAL DOCUMENTS 7.1 Receive and Scan Executed Closing Package

7.2 Split Docs and Send Recordable Docs to the County

7.3 Create and Approve Final Title Policy

7.4 Send Final Documents to Lender/ Borrower

Customer Facing Tasks Agent Advantage Services First American Title Insurance Company makes no express or implied warranty respecting the information presented and assumes no responsibility for errors or omissions. First American, the eagle logo, First American Title, and firstam.com are registered trademarks or trademarks of First American Financial Corporation and/or its affiliates.

AMD: 06/2018

First American Title | Indiana Commercial Connection | Spring 2019

If you have questions about Agent Advantage, contact Tiffany Jones: D: 317.564.2724 | C: 317.617.6053 www.firstam.com tijones@firstam.com Š2018 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF

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First American Title

INDIANA AGENCY TEAM 11611 N. MERIDIAN STREET, SUITE 430, CARMEL, IN 46032

Pictured left to right: Mary Slade, Matt Russell, Tiffany Jones, Mike Duffy, Kelly Quack, and Melissa Cummings.

Matt Russell

VP, Indiana State Manager D: 317.564.2720 | C: 317.671.0706 | mrussell@firstam.com

Mary Slade

Mike Duffy

Indiana State Underwriting Counsel

Indiana Underwriting Counsel

D: 317.564.2721 C: 317.518.2309 mslade@firstam.com

D: 317.564.2727 C: 317.607.0249 mduffy@firstam.com

Kelly Quack Underwriter

D: 317.564.2722 C: 317.697.1131 kquack@firstam.com

Tiffany Jones

Melissa Cummings

D: 317.564.2724 C: 317.617.6053 tijones@firstam.com

D: 317.564.2728 mcummings@firstam.com

Agency Account Manager

Agency Administrative Assistant

Indiana Agency Underwriting Department Indiana Agency Underwriting Department TF: 800.999.1176 | F: 317.684.7559 TF: 800.999.1176 | F: 317.684.7559 underwriting.in@firstam.com

underwriting.in@firstam.com

First American Title Insurance Company makes no express or implied warranty respecting the information presented and assumes no responsibility for errors or omissions. First American, the eagle logo, First American Title, and firstam.com are registered trademarks or trademarks of First American Financial Corporation and/or its affiliates.

AMD: 12/2018

First American Title | Indiana Commercial Connection | Spring 2019

www.firstam.com Š2019 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF

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