In certain circumstances, judgments and liens against a buyer will be subordinate to the lien of a purchase-money mortgage (a mortgage the proceeds of which are used to purchase the property on which the mortgage will be a lien). In order to expedite the search and examination of title and the closing process, ATG has decided to waive the requirement of a judgment and lien search on the buyers in a transaction in which ATG will also be insuring a purchase-money mortgage executed by the buyers. Additionally, if the transaction is a cash transaction, no search of the buyer is necessary, as any judgments and liens against an insured buyer will be excluded from coverage under Exclusion from Coverage 3(a) (title matters "created, suffered, assumed, or agreed to by the insured").

This policy applies only to purchase-money mortgages; it does not apply to refinance mortgages, second mortgages, revolving credit mortgages, reverse mortgages, construction mortgages, commercial transactions, and any other transaction not involving a purchase-money mortgage. If there is any doubt whether a judgment and lien search on the buyers should be conducted, the doubt should be resolved in favor of conducting the search.

If you have any questions, please Contact an Underwriter.