How to get the best title coverage for your client (part 10) ENDORSEMENTS ADD VALUE


The conditions and stipulations of ALTA title insurance policies provide that the policy terms may not be amended except by a written endorsement attached to the policy and signed by a corporate signatory. ALTA Owner's Policy (10-17-92), Conditions and Stipulations paragraph 15(c). Endorsements may be used for a variety of purposes: to provide coverage not included within the basic policy, to provide affirmative coverage against loss arising from the occurrence of a specific event, or to provide limited coverage against matters falling within the exclusions or exceptions.

In residential transactions, lenders typically require between three and five endorsements: 1) the CLTA 100 or WLTA 100 (comprehensive); 2) the CLTA 116 or WLTA 116 (address); 3) the ALTA 6 (variable rate mortgage) or the ALTA 6.2 (variable rate mortgage-negative amortization); 4) the ALTA 8.1 (environmental protection); or 5) the WLTA 104 (assignment of mortgage). Additional endorsements may be requested to provide coverage against specific matters, for example the CLTA 100.29 (mineral reservation) and the CLTA 102.5 (foundation location) endorsements..

In commercial transactions, lenders may require additional endorsements designed to address specific features of the particular transaction. Common commercial endorsements include: 1) the CLTA 103.7 (contiguity to a street); 2) the CLTA 114 (coinsurance); 3) the ALTA 3 (zoning); 4) the "doing business as" endorsement; 5) the Fairway endorsement (partnership transfer); 6) the first loss endorsement; and 7) the intervening lien endorsement. .................In my next few posts I will give different endorsements you may consider with a brief explanation of what they offer................

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