[Title 32 CFR 644.62]
[Code of Federal Regulations (annual edition) - July 1, 2002 Edition]
[Title 32 - NATIONAL DEFENSE]
[Subtitle A - Department of Defense (Continued)]
[Chapter V - DEPARTMENT OF THE ARMY (CONTINUED)]
[Subchapter J - REAL PROPERTY]
[Part 644 - REAL ESTATE HANDBOOK]
[Subpart C - Acquisition]
[Sec. 644.62 - Title evidence.]
[From the U.S. Government Printing Office]


32NATIONAL DEFENSE42002-07-012002-07-01false644.62Sec. 644.62NATIONAL DEFENSEDepartment of Defense (Continued)DEPARTMENT OF THE ARMY (CONTINUED)REAL PROPERTYREAL ESTATE HANDBOOKAcquisition
Sec. 644.62  Title evidence.

    (a) Acceptable Types of Title Evidence. (1) Certificates of title 
are acceptable title evidence. Certificates of title must be in a form 
acceptable to the Attorney General. An acceptable form of certificate of 
title which has been approved by the Attorney General has been issued by 
the Chief of Engineers as ENG Form 903, Certificate of Title.
    (i) In contracting for certificates of title, ENG Form 1016, 
Specifications for Furnishing and Delivering Certificates of Title 
Owner's Title Guarantee (Insurance) Policies and Continuations Thereof, 
will be used.
    (ii) Any title or abstract company approved by the Department of 
Justice and authorized and qualified to issue certificates of title in 
the State where the land is located will be acceptable to furnish 
certificates of title (Department of Justice ``Standards for the 
Preparation of Title Evidence in Land Acquisitions by the United States, 
1970.'') In those few jurisdictions where bar associations or other 
public or professional bodies hold that the issuance of certificates of 
title is the issuance of title opinions and therefore the practice of 
law and where title companies as corporations cannot engage in the

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practice of law, insured certificates of title may be procured from 
attorneys, acceptable to the Lands Division of the Department of 
Justice, acting as agents for title companies. The procedure for the 
selection of attorneys is set forth in Sec. 644.63(b).
    (iii) Certificates of title will be based on a search of all records 
affecting the title to the land and be unqualified as to the period of 
search. In the event that it is not practicable to obtain certificates 
of title, unqualified as to the period of search, all pertinent facts 
will be referred to the Department of Justice for consideration and 
approval.
    (iv) Certificates of title or title insurance policies shall not 
limit the liability of the title company to a sum less than 50 percent 
of the reasonable value of the property. If property is acquired by 
donation or exchange, the value will be determined by the Corps of 
Engineers. However, as to acquisitions valued at more than $50,000, the 
liability of the title company may be limited to 50 percent of the first 
$50,000 and 25 percent of that portion of the value in excess of that 
amount. This limitation on the general rule has been approved by the 
Department of Justice. The appropriate ENG Forms for specifications for 
supplying title evidence may be amended, if that limited liability can 
be obtained. A certificate of title or title insurance policy by one 
title company for a single acquisition valued at more than 25 percent of 
the admitted assets (after deducting existing liabilities secured or 
unsecured and excluding any trust or escrow funds) of the issuing 
company is not acceptable.
    (v) Generally, it is not necessary to obtain a final certificate of 
title when land is acquired by condemnation proceedings. However, it may 
be necessary that an intermediate certificate of title be obtained 
setting forth the limitation of liability of the title company. Division 
and District Engineers will be governed by the requirements of the local 
United States Attorney as to the necessity of obtaining an intermediate 
or final certificate of title.
    (vi) Certificates of title, whether preliminary, intermediate, or 
final, will be procured in sufficient numbers to satisfy the needs of 
the District involved. Normally an original and two signed copies of 
each certificate of title will suffice.
    (vii) The specifications may be supplemented to require the title 
company to have a local representative stationed convenient to the 
project office, when, because of the nature of the project (anticipated 
complexities of title; high purchase prices, or other reasons), it is 
considered advisable that a local representative be available to perform 
preclosing interim title searches on request of the Contracting Officer.
    (viii) The title company's local representative must be authorized 
to pass on the sufficiency of the proposed deed to the United States; to 
give final approval of curative material furnished to satisfy title 
objections set forth in certificates of title; and to testify in court 
relative to the status of title, if called upon to do so.
    (2) Title guarantee or title insurance policies are acceptable title 
evidence.
    (i) Interim binders on owner's title guarantee or title insurance 
policies supplemented by an owner's title guarantee policy or title 
insurance policy in the forms approved by the Attorney General (ENG Form 
1014), Interim Binder on Owner's Title Guarantee (Insurance) Policy, and 
ENG Form 1015, Owner's Title Guarantee (Insurance) Policy will be 
acceptable as evidence of title only in acquisition in those States 
where certificates of title may not be issued. ENG Form 3893-R is the 
form of endorsement for use with the title insurance policies when 
changes or corrections become necessary. No other substantial variation 
in the form of interim binder or the form of title guarantee or title 
insurance policy will be acceptable without prior approval of the 
Attorney General.
    (ii) Companies contracting to issue such interim binders or 
preliminary reports and title guarantee or title insurance policies must 
have authority under the laws of the State of their incorporation and 
their charter to issue the same. They must also be financially sound and 
be willing and able to issue such binders and policies for all tracts 
for the amount of liability as set forth above.
    (iii) In contracting for title guarantee or title insurance 
policies, ENG

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Form 1016, Specifications for Furnishing and Delivering Certificate of 
Title Owner's Title Guarantee (Insurance) Policies and Continuations 
Thereof, will be used.
    (iv) The interim binder or preliminary report must disclose the 
title holders of record and contain full information on all matters set 
forth in the binder as affecting the title. This data must be in 
sufficient detail to enable an attorney examining the report to 
determine the nature and extent of such matters and their effect on the 
validity of the title of the land described therein. The contents of the 
report must meet the requirements of ENG Form 1016.
    (v) The provisions of paragraphs (a)(1) (iv), (v), (vi), (vii) and 
(viii) of this section also apply to title guarantee or title insurance 
policies.
    (3) Abstracts of title may be acceptable title evidence.
    (i) Abstracts if title complying with the rules for abstracts in 
``Standards for the Preparation of Title Evidence in Land Acquisitions 
by the United States'' issued by the Department of Justice, 1970, are 
acceptable title evidence if prepared by abstractors acceptable to the 
Attorney General. These may include abstractors employed by a department 
or agency of the Government. Corps of Engineers personnel generally will 
not prepare abstracts of title. However, where there is a comparatively 
small amount of abstract work to be performed, it may be desirable to 
have the abstracts prepared by qualified Government personnel. In such 
cases, the prior approval of the Chief of Engineers will be obtained. 
The request should justify the preparation of abstracts by Government 
personnel.
    (ii) The form and contents of abstracts of title will meet the 
requirements in the ``Standards for the Preparation of Title Evidence in 
Land Acquisitions by the United States'' (Department of Justice, 1970) 
and ENG Form 1012, Specifications for Furnishing and Delivering 
Abstracts of Title.
    (iii) The period of search of an abstract of title to be acceptable 
to the Attorney General will, wherever possible, begin with some 
undisputed source of title such as an original grant or patent from the 
sovereign. Where it is impossible or impracticable to begin with such 
grant or patent, refer to ``Standards for the Preparation of Title 
Evidence in Land Acquisitions by the United States'' (Department of 
Justice, 1970) and ENG Form 1012 for guidance.
    (iv) In contracting for abstracts of title, ENG Form 1012 will be 
used. ENG Form 1012 provides for an unlimited period of search. For the 
purpose of conserving Government funds and in applicable easement 
acquisitions, Division and District Engineers are authorized to modify 
ENG Form 1012 to provide for the mimimum period of search allowable 
under the regulations of the Department of Justice, when deemed to be to 
the best interest of the Government.
    (4) Where the consideration to be paid by the Government is $1,000 
or less, acquisition in fee may be based upon a title search by a staff 
attorney when it is deemed to be in the best interest of the Government. 
The Preliminary Certificate of Title, ENG Form 909, shall be based upon 
a search of the local land records beginning with a deed or other 
instrument transferring title recorded at least 40 years prior to the 
date of the preliminary certificate. The Final Certificate of Title on 
ENG Form 1013, shall be executed by a qualified Corps of Engineers' 
attorney, preferably the same attorney who executed the preliminary 
certificate, and shall be based on a further search of the local land 
records from the date of the preliminary certificate to and including 
the date and time of recordation of the deed to the United States or to 
the date title passes in a condemnation proceeding. The attorney 
preparing such preliminary or final certificate of title shall also 
prepare an Abstract of Title evidencing the results of his search of the 
records. The Certificate of Title will set forth in detail all liens, 
encumbrances, outstanding interests and other estates adversely 
affecting the title.
    (b) Easements. The standards and requirements as to title evidence 
for fee acquisition, set forth above, will be observed in the 
acquisition of all easements, except as follows:
    (1) Preliminary certificates of title of approved title companies 
for easement

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acquisitions will be in the same form approved by the Attorney General 
for fee acquisitions and issued by the Chief of Engineers as ENG Form 
903. Final certificates of title in easement acquisitions, however, must 
show title to the easement vested in the United States in the same land 
described in the certificate and the deed to the United States. A form 
of final certificate of title for easements approved by the Attorney 
General and issued by the Chief of Engineers as ENG Form 1017, Final 
Certificate of Title for Easements, will be used in easement 
acquisitions.
    (2) In contracting for certificates of title to easements, ENG Form 
1016, Specifications for Furnishing and Delivering Certificates of 
Title, Owner's Title Guarantee (Insurance) Policies and Continuations 
Thereof, may be used provided the following paragraph is substituted in 
the detailed specifications: ``Each certificate of title shall be 
executed in triplicate on legal size paper. Preliminary certificates of 
title shall be in the form attached hereto, ENG Form 903, and final 
certificates of title for easements, showing title vested in the United 
States, shall be in the form attached hereto, ENG Form 1017.''
    (3) In jurisdictions where it is not possible to obtain certificates 
of title commercially, title guarantee (insurance) policies may be 
obtained. In such cases, appropriate adjustment in forms and 
specifications will be made, comparable to those prescribed for 
certificates of title to easements above.
    (4) For easements costing more than $100 but not in excess of 
$5,000, the requirements of the Attorney General have been waived. In 
such cases, it is acceptable to use certificates of title prepared and 
executed by a qualified Corps of Engineers' attorney. The Preliminary 
Certificate of Title, ENG Form 909, shall be based upon a search of the 
local land records beginning with a deed or other instrument 
transferring title recorded at least 25 years prior to the date of the 
preliminary certificate. The Final Certificate of Title on ENG Form 
1013, shall be executed by a qualified Corps of Engineers' attorney, 
preferably the same attorney who executed the preliminary certificate, 
and shall be based on a further search of the local land records from 
the date of the preliminary certificate to and including the date and 
time of recordation of the deed to the United States or to the date 
title passes in a condemnation proceeding. The attorney preparing such 
preliminary or final certificate of title shall also prepare an Abstract 
of Title evidencing the results of his search of the records. The 
Certificate of Title will set forth in detail all liens, encumbrances, 
outstanding interests and other estates adversely affecting the title.
    (5) As to easements which cost $100 or less, acquisition shall be in 
accordance with the provisions of paragraph (5) on page 5 of ``Standards 
for the Preparation of Title Evidence in Land Acquisitions by the United 
States'' (Department of Justice, 1970) which permit such acquisition to 
be based on a last owner search. Any search authorized by these 
provisions may be conducted by a qualified attorney employed by the 
Corps of Engineers.