777 Post Oak Blvd., Suite 200

Houston, Texas  77056

713-877-1770 Fax

713-877-1780 Office




To:          All Agents, Direct Operations and Attorneys for the State of Texas

From:       David W. Rhodes

Date:       July 17, 2003

Re:        Master Indemnity Letter from Fidelity National Title Insurance and Alamo Title Insurance effective July 1, 2002
             Master Indemnity Letter from Security Union, Chicago Title or TICOR  effective July 15, 2003

Fidelity National, Alamo Title, Security Union, Chicago Title and TICOR have started using a Master Indemnity Agreement rather than individual indemnity letters on each guaranty file.  When you contact them to request an indemnity letter they likely will refer you back to Old Republic National Title Insurance Company (“Old Republic”) to verify that Old Republic will accept the use of the Master Indemnity Agreement on the particular title defect in question. 

You will need to send us a copy of your commitment indicating the problem and a copy of the other Underwriter’s Owner’s policy.  Old Republic will return approval back to you but you will need not get an actual indemnity letter.  The liability under this Indemnity is limited to the face amount of the other Underwriter’s policy or $500,000.00 whichever is less.  You should make the copy of the prior policy and the approval from Old Republic part of the permanent records of your file. 

The Master Indemnity covers most of the common problems that are subject to being indemnified against such as missing releases or assignments of lien.  There are six basic potential defects that the Master Indemnity will cover.  These defects are: 

I.      Doubt as to whether the spouse of a prior grantor has a Homestead interest in the Land; or

II.   Doubt as to whether a recorded Judgment Lien, Federal Lien or State Tax Lien constitutes an unsatisfied lien against the Land; or

III.Doubt as to whether a recorded mortgage, deed of trust, vendor’s lien, mechanic’s lien contract home equity lien, reverse mortgage, owelty lien, and/or any other consensual lien (hereinafter “mortgage”) has been satisfied or release as a lien against the Land; or

IV. Doubt as to whether due process was afforded to certain defendants in court cases involving probate, foreclosure, quiet title or other proceedings; or

V.    Doubt as to whether a trustee or attorney in fact had the requisite authority to convey the title to the Land to the current insured owner or a predecessor in title; or

VI. Doubt as to the authority of an independent executor/executrix, or independent administrator/administratrix to convey the title to the Land to the current insured owner or a predecessor in title. 

Each request will be reviewed by Old Republic to determine if the problem is covered by the Master Indemnity and if Old Republic wants to insure the current transaction and rely on the coverage provided by it.  Old Republic will send you an approval via fax, e-mail or regular mail. 

Old Republic is evaluating this new procedure to see if it will be efficient and convenient for our agents to utilize.  At this time Old Republic has not implemented its own form of a Master Indemnity Agreement. 

If you have any problems with this new indemnity procedure, please call Old Republic’s underwriting staff.