SERVICE AGREEMENT
Customer hereby appoints First American SMS as its authorized agent to perform
the FasTrax Service(the "Service") described below.
First American SMS will provide Customer with Service for real property closings
handled by Customer. Customer agrees to pay First American SMS $35 for each
order placed plus appropriate recording fees if not collected by the lender. For
this fee, First American SMS will track, obtain, and record the appropriate
documents to release, satisfy, discharge, or cancel institutional mortgages
or deeds of trust.
The Customer will be responsible for providing First American SMS with
information regarding the document to be tracked, a check for the FasTrax service
fee and the appropriate funds to record the document if not collected by the
lender. Customer agrees upon request to provide First American SMS with any
additional information to facilitate the release, discharge, satisfaction, or
cancellation of the lien.
For Massachusetts Customers and Transactions
Customer hereby appoints First American SMS, Inc. (“FA
SMS”) as its authorized agent to track, obtain and record mortgage releases for
real property transactions (“Transaction”) for which Customer is responsible in
order to release, satisfy, discharge, or cancel institutional mortgages or
deeds of trust (“Mortgage”) in accordance with Massachusetts statute (MGL c 183 §55) (“Statute”) upon the following terms
and conditions (“FasTrax Service”).
A. Within thirty (30) days following the closing of the
Transaction (“Assurance Time Frame”), Customer places the FasTrax order and
delivers all of the following to FA
SMS (the “Order”):
a.
a copy of the
payoff transmittal letter in which the Customer instructs the lender that FA
SMS is authorized to act on Customer’s behalf and Customer requests lender deliver
the discharge to FA SMS,
b.
a copy of the
applicable pages of the title search
showing the paid off mortgage with all subsequent assignments used in the
Transaction. (“Title Report”),
c.
a copy of the
payoff statement and payoff check for
the Mortgage,
d.
any other
documents reasonably requested by FA SMS applicable to the release of the Mortgage,
e.
if Customer
is relying on an exception to a perfect discharge as permitted by MGL c. §54C,
a written statement specifying same in reasonable detail; and
f.
a check
payable to FasTrax for $35 plus the applicable recording fees (unless the
latter was collected by the lender.)
B. All documents constituting the Order received from
Customer are complete and accurate (including, but not limited to, the recording
information).
C. FA SMS will inform Customer in writing within two (2)
business days if any documents specified in Section 1.A are incomplete or missing
as required to constitute an Order.
Liability Assurance:
Provided
that Customer complies with the requirements in Section 1.A & B within the
Assurance Time Frame, FA SMS assumes liability for damages (including any
penalties) actually incurred by Customer for violation of the Statute for the
specific Mortgage provided that Customer
(i) promptly notifies FA SMS in writing of any claim for such damages, (ii)
allows FA SMS the opportunity to handle and defend any such claim, and (iii)
reasonably cooperates with FA SMS with respect to the defense of the claim.
A. If the original Mortgage discharge is actually delivered
to the Customer by the lender, Customer must immediately forward same to FA SMS
with appropriate information regarding the Order. FA SMS will present the
Mortgage discharge to the registry for recording within fifteen (15) days of actual
receipt by FA SMS.
B. If the Mortgage discharge does not reference the
recording information on the Title Report, FA SMS will use reasonable efforts to
obtain a corrected discharge directly from the lender and to record same within
fifteen (15) days of actual receipt by FA SMS.