Customer Login   |  Quick Order   |  Contact Us  |  Site Map     
  
Home > Underwriting > TIRSA Rules > SECTION 29

SECTION 29 - CONTRACT VENDEE INSURANCE

  1. An owner’s policy with a TIRSA Residential Contract Vendee Endorsement (hereafter Residential Contract Vendee Insurance) insuring a 1-4 family residence or individual residential condominium or individual residential cooperative unit may not be issued in an amount less than the down payment specified in the contract and may be issued in any additional amount, not to exceed the full amount of the contract plus the cost of contemplated improvements and other development and construction costs, as desired by the purchaser of such insurance. The charge for the Residential Contract Vendee Insurance shall be the applicable owner’s rate. The amount paid the insuring company or companies for Residential Contract Vendee Insurance shall become a credit toward the premium for the subsequent purchase by the insured, or one who succeeds to the interest of the insured pursuant to Section 32 of this Manual, of an owner’s policy from the same company or companies.

  2. An owner’s policy with a TIRSA Commercial Contract Vendee Endorsement (hereafter Commercial Contract Vendee Insurance) insuring other than a 1-4 family residence or individual residential condominium or individual residential cooperative unit may not be issued in an amount less than the down payment specified in the contract and may be issued in any additional amount, not to exceed the full amount of the purchase price payable under the contract plus the cost of contemplated improvements and related costs as provided for in the TIRSA Commercial Contract Vendee Endorsement, as desired by the purchaser of such insurance. The charge for the Commercial Contract Vendee Insurance shall be one hundred twenty percent (120%) of the owner’s rate for the amount of such insurance purchased. The amount paid the insuring company or companies equal to the owner’s rate (but not including the additional twenty percent (20%) charge) for the Commercial Contract Vendee Insurance shall become a credit toward the premium for the subsequent purchase by the insured, or one who succeeds to the interest of the insured pursuant to Section 32 of this Manual, of fee insurance from the same company or companies. The charge shall include the cost of the first five continuations during the life of the Commercial Contract Vendee Insurance. An additional fee of $200 for each subsequent title continuation search beyond the fifth shall be made and collected at the time of each such continuation.

  3. In the event that Residential Contract Vendee Insurance or Commercial Contract Vendee Insurance is issued simultaneously with an owner’s policy with a TIRSA Leasehold Endorsement (hereafter Leasehold Insurance) or TIRSA Cooperative Endorsement (hereafter Cooperative Insurance), the charge for the amount of the Residential Contract Vendee Insurance or Commercial Contract Vendee Insurance that does not exceed the amount of the Leasehold Insurance or Cooperative Insurance shall be calculated at thirty percent (30%) of the applicable vendee rate. The rate for Residential Contract Vendee Insurance or Commercial Contract Vendee Insurance in excess of the amount of the Leasehold Insurance or Cooperative Insurance shall be calculated at the applicable vendee rate as set forth in paragraphs (A) and (B) above.

  Copyright 2006 by Monroe Title Insurance Corporation