ATTN: ATG Wisconsin Members - Effective Immediately

Please be advised that we will begin using new versions of the following three forms, effective immediately: Gap Endorsement, Personal Undertaking and Indemnity – Gap Coverage, and Owner/Seller Affidavit. Click the title links below to view these forms. All three forms have been revised to more accurately reflect Wisconsin customs and procedures. They will be located in Print Documents under the Wisconsin Documents category of ATG REsource. Please begin using them immediately and discard all older versions.

The following is a summary of the changes and the reasons for each change.

1. ATG Form #2024-WI: Gap Endorsement
This form has been changed to provide for the fact that, in Wisconsin, the endorsement is furnished to the customer at the same time the commitment is issued. It also takes into account the fact that we do not perform the closing for every commitment we prepare. The endorsement imposes certain requirements in order for the endorsement to be in effect. The requirements (1 – 5) are listed on the endorsement form itself and are designed to make the gap period as small as possible by requiring advance notice of the closing and for the timely delivery or recording of the closing documents. The endorsement also requires a warranty of title by the grantor to the grantee (requirement 2) and an indemnity/personal undertaking from the grantor. Requirement 3 of the endorsement informs the proposed insured that he/she must notify the issuing member/agent that the closing is taking place three days in advance of the closing. If the member is performing the closing, this requirement is unnecessary. Requirement 4 requires the proposed insured to either record the documents within three days after the closing or to have them delivered to the issuing member. Again, if the issuing member is performing the closing, this is not an issue.

2. ATG Form #3040-WI: Personal Undertaking and Indemnity - Gap Coverage
This is the document referred to above as one of the requirements for the Gap endorsement. The indemnitor/seller agrees to hold us harmless for loss or damage caused by his/her omission or misstatement of facts with respect to matters that appear in the gap period. The requirement that the indemnity be provided is clearly indicated on the face of the Gap endorsement itself as requirement No. 5. Again, this form is a replacement of the form we currently use. It is more in line with what Wisconsin customers are used to seeing.

3. ATG Form #3057-WI: Owner/Seller Affidavit (as to liens and possession)
This document has also been re-drafted to be consistent with Wisconsin practices. It asks for information regarding parties in possession (tenants and otherwise), whether work has been commenced that could give rise to construction liens, and other “off record” matters of which the owner/seller may be aware. This form is simply a replacement for the form currently in use and is still designed to allow us to delete the standard “boilerplate” exceptions regarding parties in possession and possible unfiled construction liens. There are no changes in procedure associated with this new form.

Please take some time to read the new forms. They have been designed with an eye toward clarity and "plain English" while, at the same time, reducing the gap insurance exposure. If you have any questions or comments, don’t hesitate to contact me. Thanks for being an ATG member.

James M. Marlin
Underwriting Attorney
ATG Wisconsin Operations
jmarlin@atgf.com
Direct: 262.347.1304
Office: 800.788.8989 or 262.347.0102