[Code of Federal Regulations]
[Title 32, Volume 4]
[Revised as of July 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 32CFR644.61]

[Page 143-144]
 
                       TITLE 32--NATIONAL DEFENSE
 
              CHAPTER V--DEPARTMENT OF THE ARMY (CONTINUED)
 
PART 644--REAL ESTATE HANDBOOK--Table of Contents
 
                         Subpart C--Acquisition
 
Sec. 644.61  General.

      Procurement of Title Evidence, Title Clearance, and Closings


    (a) Purpose. Sections 644.61 through 644.72 describe the procedures 
relating to the procurement of title evidence, title clearance, and 
closings for the acquisition of real estate and interests therein for 
all land acquisition programs administered by the Chief of Engineers. 
Exceptions in connection with the acquisition of properties under the 
Homeowners Assistance Program are set forth in subpart E.
    (b) Applicability. These sections are applicable to all Division and 
District Engineers having real estate responsibility.
    (c) Guidelines. (1) The satisfactory progress of land acquisition 
programs necessitates the prompt procurement of title evidence and 
prompt title clearance. One of the following types of title evidence 
should be obtained, after considering the cost of the several types and 
other factors mentioned below. To effect these objectives, careful 
planning is essential, including a determination of the most acceptable 
and available type of title evidence and the source from which such 
title evidence may be procured. The Chief of Engineers is responsible 
for procuring all title evidence, including title evidence needed for 
lands which are acquired by condemnation proceedings. The early 
procurement and examination of the title evidence and title clearance 
will expedite payment to landowners from whom offers are obtained or 
against whom condemnation proceedings are filed.

[[Page 144]]

    (2) Insured certificates of title or policies of title insurance 
shall be obtained wherever possible. This is on the theory that the 
Government is buying title searching service as well as the title 
evidence itself and is avoiding the time and cost of examining abstracts 
of title, generally voluminous in nature.
    (3) Where it is not possible to obtain certificates of title or 
title insurance, abstracts of title may be obtained, as a last resort.
    (4) As used in these sections, an abstract of title is a synopsis or 
digest of all instruments of record affecting the title to a specific 
parcel of land. It neither guarantees nor insures the title. A 
certificate of title is a contract whereby a title company certifies 
that title to a specific parcel of land is good and unencumbered of 
record in a named person excepting only such defects and encumbrances as 
are shown therein. The liability of the company is limited to an amount 
specified in the certificate. A title insurance policy is a contract 
which insures that the owner or mortgagee will not suffer any loss or 
damage by reason of defects in the title to the property, or liens or 
encumbrances thereon existing at the date of the policy, except those 
defects, liens, or encumbrances which the policy specifically excepts. 
Liability thereunder is not limited to matters of record but extends to 
matters beyond the record.
    (5) The Directory of the American Land Title Association may be 
obtained upon request to the Association at 1828 L Street, NW., 
Washington, DC 20036, or to any major title insurance company. This 
Directory lists, by States, the abstract and title companies which 
provide title insurance. These companies are acceptable to the Attorney 
General. Requests for furnishing title certificates or title insurance 
should be made to the major title insurance companies in addition to 
local abstractors and title companies.
    (6) From past experience, it is considered that the procurement of 
certificates of title or title insurance is more economical than 
abstracts of title and the use of these types of title evidence 
expedites payment to landowners. In the majority of the States either 
certificates of title or title insurance are obtainable and the premium 
for issuance of such certificates or policies is based on a schedule of 
fees approved by the State Insurance Commission or some similar State 
agency. The premium fixed by such schedules, in most cases, includes the 
charge for title examination (preliminary certificate of title or 
preliminary binders) and the charge for insurance (final certificates of 
title or title guarantee policy) and any variance from the prescribed 
fees is considered a violation of the Sate law or regulation. Most State 
Insurance Commissions have recognized and approved the forms of 
certificates of title and title insurance policies prescribed by the 
Attorney General and have authorized their use in lieu of owners' 
policies. Division and District Engineers should familiarize themselves 
with the State title insurance laws and regulations. If prices quoted by 
all possible sources seem exorbitant, the matter should be referred to 
HQDA (DAEN-REA-P) WASH DC 20314 for action.