To what extent should the examiner inquire into or comment upon federal, state and local laws, ordinances and regulations affecting the conveyance, use, development or division of real estate?

The examiner is not obligated to undertake additional or non-record research regarding the applicability of such laws, ordinances and regulations to the premises without specific authorization from the examiner’s client. If the examiner has knowledge of the client’s intended use of the premises, the examiner should advise the client of the applicability of such laws, ordinances and regulations so that the client may determine what further counsel the client desires. The examiner should comment, however, to the extent that the examination of the record chain of title to the premises or actual knowledge reveals apparent violations of or the need to comply with such laws, ordinances and regulations.

The use and value of real estate can be substantially affected by the requirements of federal, state and local laws, ordinances and regulations affecting the conveyance, use, development or division of real estate and the examiner should be familiar therewith. The examination of the record chain of title will not ordinarily reveal any violations of or the need to comply with such laws, ordinances and regulations, however, and the examiner is not obligated to analyze the applicability thereof by additional or non-record research unless authorized to do so by the client. To the extent the examination of the record chain of title reveals apparent violations of or the need to comply with such laws, ordinances and regulations such as, for example, the Municipal Subdivision Law or the Site Location of Development Act, the examiner should comment thereon.

CAVEAT: Absent specific affirmative insurance, standard owner’s and lender’s title insurance policies may not insure against loss or damage, including attorney’s fees, incurred by an insured owner or lender as a result of a failure to comply with the requirements of such laws, ordinances and regulations.