REAL PROPERTY INSPECTION REPORT MANUAL What is an

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REAL PROPERTY INSPECTION REPORT MANUAL

Most lenders require survey coverage. Unlike many title insurance companies, ITG does not

require an ALTA/NSPS Land Title Survey to provide lender survey coverage on residential

properties in most cases. See “When is a survey required?” section below for a very limited list of

conditions that require a formal survey. While a survey is rarely required, there are a few

circumstances that require a “real property inspection report” (“RPIR”) due to increased risk.

What is an “RPIR”?

Real Property Inspection Report (RPIR): A visual depiction of the guaranteed Land prepared

by a licensed surveyor or engineer showing the boundary lines, the location of any improvements

relative to the property lines, easements, building setback lines, property dimensions and any

encroachments.

See Sample RPIR attached hereto as Exhibit A. In this sample, concrete improvements

encroaching into the setbacks are depicted in yellow.

When is an RPIR required?

A recent RPIR is always required in the following circumstances*:

1. The combined lender coverage amount is greater than $750,000 (e.g., the lender first

coverage amount alone is greater than $750,000 or the sum of the lender first and junior

coverage amounts are greater than $750,000).

2. The total acreage of the guaranteed Land is more than 40 acres.

*In refinance transactions, ITG may accept an Affidavit of No New Improvements in lieu of an

RPIR. See next section for further details.

ITG may require an RPIR in the following circumstances:

1. A known boundary dispute exists.

2. A visible encroachment exists.

3. The parties failed to obtain the required, completed and properly acknowledged

Composite Mortgage Affidavits (“CMA”) from all titleholders and spouses, as well as all

proposed titleholders (buyers in a purchase).

4. As ITG otherwise deems necessary.

In the event neither an RPIR nor an Affidavit of No New Improvements (as applicable) is obtained

in the above circumstances, ITG may be willing to provide coverage, but the coverage shall not

include survey or easement coverage (the certificate shall include Standard Exceptions 2 and 3),

and the coverage shall also not include the Comprehensive 1 or Comprehensive 2 endorsement.

For field issued certificates, the field issuer must manually add Standard Exceptions 2 and 3 to

Schedule B, Part I and must also remove any comprehensive endorsement prior to issuing the

final certificate.

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Affidavit of No New Improvements

In lieu of a new RPIR in refinance transactions, in certain circumstances ITG may accept Affidavits

of No New Improvements showing no external or structural improvements have occurred on the

Land or adjacent properties since the last RPIR was completed provided that the participant

obtains prior underwriting approval. ITG’s analysis will be completed on a case-by-case basis.

While limited exceptions may exist, ITG generally does not permit the use of the Affidavit of No

New Improvements if the prior RPIR was completed more than twelve months prior to the date

the transaction was first submitted to ITG underwriting. If a recent RPIR was completed and

approved by ITG, ITG, in its sole and absolute discretion, may determine that receipt of all of

following is acceptable in lieu of a new RPIR:

1. Affidavit of No New Improvements (Surveyor/Engineer): A signed and acknowledged

Affidavit of No New Improvements (Surveyor/Engineer) from the surveyor that prepared

the prior RPIR affirmatively stating that the surveyor has made a recent physical inspection

of the Land and can confirm (i) there have been no other improvements to the Land other

than those shown on the RPIR; (ii) no other structures exist on the Land; and (iii) the

improvements do not encroach upon any setbacks or easements. ITG will not accept

representations qualified with "to the best of my knowledge" language. The RPIR must be

referenced and attached to the affidavit as an exhibit. AND

2. Affidavit of No New Improvements (Owner/Seller): A signed and acknowledged

Affidavit of No New Improvements (Owner/Seller) from all current titleholder(s)

affirmatively stating (i) I/We am/are the owner(s) of record described in the Commitment

for title coverage; (ii) I/We have not made or caused to be made any structural

improvements or structural additions to existing improvements on the premises described

in the Commitment since [INSERT DATE OF LAST RPIR] except [INSERT ANY NEW

IMPROVEMENTS]; (iii) No structural improvements or addition to existing improvements

were made on any adjacent property, which encroach, however slight the encroachment

may be, onto the premises described in the Commitment since [INSERT DATE OF LAST

RPIR} , except [INSERT ANY NEW IMPROVEMENTS]; (iv) I/We further state that the

Real Property Inspection Report made by [INSERT NAME OF SURVEYOR], dated

[INSERT RPIR DATE] (a copy of which is attached hereto and made a part hereof), is a

correct and complete representation of all improvements now located on the premises

described in the Commitment and on all adjacent properties, except [INSERT ANY NEW

IMPROVEMENTS]; and (v) I/We have undertaken a complete and thorough investigation

as to the condition of the premises and do not claim lack of knowledge or ignorance of fact

should a difference, in fact, exist between the real property inspection report/drawing and

the actual condition of the premises at the time of this Affidavit. AND

3. Owner/Seller CMA: A completed, signed and notarized Composite Mortgage Affidavit

(“CMA”) from the sellers/titleholders, and spouses, if any. The CMA must not reflect any

unrecorded easements, contracts, easements, agreements, etc. and should confirm

there are no pending boundary disputes.

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When should the RPIR be ordered?

ITG must be provided a recent RPIR prior to the close of escrow. ITG may amend the

commitment to except from coverage in Schedule B, Part II of the commitment any adverse

matters shown by the RPIR. Further, ITG may except from coverage in Schedule B, Part I of the

final certificate(s) any adverse matters shown by the RPIR. ITG strongly recommends ordering

the RPIR as soon as possible to avoid a delay in closing.

Who is responsible for ordering the RPIR?

Typically, the closer orders the RPIR but in many cases the field issuer and the closer are one

and the same. The field issuer and closer should communicate and coordinate a process to

ensure that the RPIR is timely completed. The field issuer must always inform the closer when/if

an RPIR is required. Whoever places the order shall share a copy with the closer, field issuer and

ITG for review prior to closing. If a closing protection letter (“CPL”) is issued, the CPL closer is

responsible for satisfying all commitment requirements, including obtaining an RPIR as

applicable. If the closer is not the examining attorney, the closer shall share the RPIR with the

examining attorney for review. The field issuer is independently responsible for satisfying all

commitment requirements prior to issuing the final certificate. If the field issuer is not the

examining attorney, the field issuer shall share the RPIR with the examining attorney for review.

What happens if the RPIR discloses an encroachment?

If an RPIR discloses an encroachment, the closer and/or field issuer shall consult an ITG

underwriter for further guidance. Any encroachments across boundary or setback lines shall be

excepted from coverage in Schedule B, Part II of the commitment and Schedule B, Part I of the

certificate. In rare circumstances, an encroachment or boundary issue is so severe that ITG may

be unable to provide coverage unless and until the matter is resolved of record.

When is a survey required (RPIR is insufficient)?

As mentioned above, ITG requires a survey in very limited circumstances. A list of these

circumstances is below:

1. The owner is requesting survey coverage through the Standard Exception 2 Waiver

Endorsement.

2. The owner is requesting easement coverage through Standard Exception 3 Waiver

Endorsement.

3. The lender and/or owner is requesting the Encroachment Endorsement.

4. The lender is requesting the Encroachment-Adverse Endorsement.

5. As ITG otherwise deems necessary.

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EXHIBIT A: SAMPLE RPIR