An interactive flipbook showing California Title ALTA Endorsements.
ALTA ENDORSEMENTS CALIFORNIA
ALTA
ENDORSEMENTS SAMPLES AND DESCRIPTIONS
INTRODUCTION
The basic coverages provided by the standard American Land Association (“ALTA”) title insurance policies address many of the most common title insurance needs. Often, however, certain insureds or certain aspect of a specific real estate transaction raise special concerns. By requesting an endorsement to the title insurance policy, an insured owner or lender may be able to receive insurance against the risk of suffering loss or damage by reason of a particular matter that is beyond the coverage of the standard policy jacket. This guide is intended to serve as an introduction for our customers to the most commonly requested title insurance endorsements. It contains a brief commentary introduction to each endorsement followed by the text of each such endorsement. Generally, endorsements will provide additional coverage for matters which would ordinarily be excluded by the Exclusions From Coverage, or excepted from coverage shown in Schedule B of the policy either by the regional general exceptions, if applicable, or by specific exceptions. A majority of the endorsements are not general in nature, but are specific to the items for which the insured desires coverage. Some are specifically designed for owner’s policies and others for loan policies. Some endorsements are not available in all circumstances. As you review this guide, please keep in mind that – due to matters such as governmental regulatory standards and local practices – the Company’s ability to approve and issue any of the endorsements contained in the guide may vary from state to state and, in some cases, even by locality. In addition, particular transactions may present special risks that might require additional clearance or requirements than those that are contemplated herein. Also, remember that this guide – by attempting to describe various coverages using non-legal terminology whenever possible – should not be relied upon as a determinative explanation or interpretation of the coverages provided. Rather, the language of each endorsement must be considered to speak for itself. It’s also important to remember that, once approved, an endorsement becomes part of the title insurance policy and that, as a result, the coverage provided by an endorsement is always subject to the other terms and provisions contained in the policy. Finally, remember that this guide is only an introduction to the most common endorsements. Other endorsements are also available to meet additional needs and concerns. In fact, in most jurisdictions, endorsements may be specially crafted to address specific risks and situations.
We at Chicago Title thank you for your interest and the opportunity to serve your real estate needs. If you have any questions about any of the material in this guide – or about any of our real estate services – please feel free to contact your representative.
All publications of the American Land Title Association®, including ALTA® policy forms, endorsements and related documents, are copyrighted and are reprinted herein by specific permission from:
American Land Title Association® (ALTA®) 1800 M Street, N.W., Suite 300S Washington, D.C. 20036-5828
Phone: 202.296.3671 Email: service@alta.org Web: www.alta.org
The endorsements presented herein are subject to underwriting and other requirements of Chicago Title Company and may not be available in all states or for all transactions.
All information is provided as a courtesy and is deemed reliable but not guaranteed. Please contact your local Sales Executive to learn more.
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TABLE OF CONTENTS
Form 1-06
Street Assessments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................ 6 Zoning – Unimproved Land. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ........................................ 8 Zoning – Completed Structure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...................................... 10 Zoning – Land Under Development. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .................................... 12 Zoning – Completed Improvement – Non-Conforming Use . . . . . . . . . . . . . . . . . . . . . . . . ........................ 15 Zoning – No Zoning Classification. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..................................... 18 Condominium – Assessments Priority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................................... 21 Condominium – Current Assessments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................................... 24 Planned Unit Development – Assessments Priority. . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................. 27 Planned Unit Development – Current Assessments . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................ 29 Variable Rate Mortgage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .......................................... 31 Variable Rate Mortgage – Negative Amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................. 33 Manufactured Housing Unit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ........................................ 35 Manufactured Housing – Conversion: Loan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................................ 37 Manufactured Housing – Conversion: Owner's. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................... 39 Environmental Protection Lien. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...................................... 41 Commercial Environmental Protection Lien. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................................ 43 Restrictions, Encroachments, Minerals – Loan Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................ 45 Covenants, Conditions and Restrictions – Unimproved Land – Owner’s. . . . . . . . . . . . . . . . . . ................... 48 Restrictions, Encroachments, Minerals – Current Violations – Loan. . . . . . . . . . . . . . . . . . . . . ..................... 50 Covenants, Conditions and Restrictions – Improved Land – Owner’s. . . . . . . . . . . . . . . . . . . . .................... 53 Covenants, Conditions and Restrictions – Loan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .............................. 55 Private Rights – Loan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ........................................... 58 Private Rights – Current Assessments - Loan Policy. . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................. 60 Restrictions, Encroachments, Minerals – Land Under Development – Loan. . . . . . . . . . . . . . . . . ................. 61 Restrictions, Encroachments, Minerals – Land Under Development – Owner's . . . . . . . . . . . . . . . ............... 64 Private Rights – Owner’s Policy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...................................... 67 Assignment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................... 69 Assignment and Date Down . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....................................... 71 Mortgage Modification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .......................................... 74 Mortgage Modification with Subordination. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................................ 76 Mortgage Modification with Additional Amounts of Insurance. . . . . . . . . . . . . . . . . . . . . . ....................... 78 Aggregation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................... 81 Aggregation – State Limits – Loan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..................................... 85 Leasehold – Owner’s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ........................................... 89 Leasehold – Loan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................. 92 Future Advance – Priority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ......................................... 94 Future Advance – Knowledge. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....................................... 97
Form 3
Form 3.1 Form 3.2 Form 3.3 Form 3.4
Form 4
Form 4.1 Form 5-06 Form 5.1-06
Form 6
Form 6.2 Form 7-06 Form 7.1 Form 7.2 Form 8.1
Form 8.2-06 Form 9-06 Form 9.1-06 Form 9.10-06 Form 9.2-06 Form 9.3-06 Form 9.6-06 Form 9.6.1-06 Form 9.7-06 Form 9.8-06 Form 9.9-06
Form 10
Form 10.1
Form 11
Form 11.1 Form 11.2
Form 12
Form 12.1 Form 13-06 Form 13.1-06
Form 14
Form 14.1
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TABLE OF CONTENTS
Form 14.2 Form 14.3
Future Advance – Letter of Credit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .................................... 100 Future Advance – Reverse Mortgage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .................................. 103 Nonimputation – Full Equity Transfer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .................................. 106 NonImputation – Additional Insured . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .................................. 108 Nonimputation – Partial Equity Transfer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................................ 109 Mezzanine Financing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ......................................... 110 Access and Entry. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................ 113 Indirect Access and Entry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....................................... 115 Utility Access . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................. 117 Single Tax Parcel. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................ 119 Multiple Tax Parcel – Easements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .................................... 121 Multiple Tax Parcel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .......................................... 123 Single Tax Parcel and ID. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ........................................ 125 Contiguity – Multiple Parcels. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...................................... 127 Contiguity – Single Parcel. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....................................... 129 Contiguity – Specified Parcels. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..................................... 131 First Loss – Multiple Parcel Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................................ 133 Location. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................................................ 135 Location and Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ........................................... 137 Co-Insurance – Single Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...................................... 139 Co-Insurance – Multiple Policies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .................................... 142 Doing Business. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................ 145 Same as Survey. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................ 147 Same as Portion of Survey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....................................... 149 Subdivision. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .............................................. 151 Usury . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................................................. 153 Easement – Damage or Enforced Removal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................... 155 Encroachments – Boundaries and Easements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .............................. 157 Encroachments – Boundaries and Easements – Described Improvements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .159 Encroachments – Boundaries and Easements – Land Under Development. . . . . . . . . . . . . . . . ................ 161 Interest Rate Swap – Direct Obligation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................................. 164 Interest Rate Swap – Additional Interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................................ 166 Interest Rate Swap – Direct Obligation – Defined Amount. . . . . . . . . . . . . . . . . . . . . . . . ........................ 168 Interest Rate Swap – Additional Interest – Defined Amount . . . . . . . . . . . . . . . . . . . . . . . ....................... 170 One-to-Four Family Shared Appreciation Mortgage. . . . . . . . . . . . . . . . . . . . . . . . . . . ........................... 172 Commercial Participation Interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................................... 174 Severable Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....................................... 177 Construction Loan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ........................................... 179
Form 15-06 Form 15.1-06 Form 15.2-06 Form 16-06 Form 17-06 Form 17.1-06 Form 17.2-06 Form 18-06 Form 18.1-06 Form 18.2-06 Form 18.3[-06] Form 19-06 Form 19.1-06 Form 19.2-06 Form 20-06 Form 22-06 Form 22.1-06 Form 23-06 Form 23.1-06 Form 24-06 Form 25-06 Form 25.1-06
Form 26 Form 27
Form 28-06 Form 28.1 Form 28.2-06 Form 28.3-06 Form 29-06 Form 29.1-06 Form 29.2-06 Form 29.3-06
Form 30
Form 30.1 Form 31-06
Form 32
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TABLE OF CONTENTS
Form 32.1 Form 32.2 Form 33-06 Form 34-06 Form 34.1 Form 35-06 Form 35.1-06 Form 35.2-06 Form 35.3-06 Form 36-06 Form 36.1-06 Form 36.2-06 Form 36.3-06 Form 36.4-06 Form 36.5-06 Form 36.6-06 Form 36.7-06 Form 36.8-06 Form 37-06 Form 38-06 Form 39-06 Form 40-06 Form 40.1-06 Form 41-06 Form 41.1-06 Form 41.2-06 Form 41.3-06 Form 42-06 Form 43-06 Form 44-06 Form 45-06 Form 46-06
Construction Loan – Direct Payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .................................. 182 Construction Loan – Insured’s Direct Payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................. 184 Disbursement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................. 187 Identified Risk Coverage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ........................................ 189 Identified Exception & Identified Risk Coverage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................. 191 Minerals and Other Subsurface Substances – Buildings . . . . . . . . . . . . . . . . . . . . . . . . . ......................... 193 Minerals and Other Subsurface Substances – Improvements. . . . . . . . . . . . . . . . . . . . . . . ...................... 195 Minerals and Other Subsurface Substances – Described Improvements. . . . . . . . . . . . . . . . . . ................. 197 Minerals and Other Subsurface Substances – Land Under Development. . . . . . . . . . . . . . . . . ................. 199 Energy Project – Leasehold/Easement – Owner’s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................ 201 Energy Project – Leasehold/Easement – Loan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .............................. 205 Energy Project – Leasehold – Owner’s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................................. 209 Energy Project – Leasehold – Loan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................................... 213 Energy Project – Covenants, Conditions and Restrictions – Land Under Development – Owner’s. . . . . . ..... 217 Energy Project – Covenants, Conditions and Restrictions – Land Under Development – Loan. . . . . . . ....... 220 Energy Project – Encroachments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .................................... 223 Energy Project – Fee Estate – Owner's . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................................. 226 Energy Project – Fee Estate – Loan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................................... 230 Assignment of Rents or Leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..................................... 234 Mortgage Tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................. 236 Policy Authentication. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ......................................... 238 Tax Credit – Owner’s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .......................................... 240 Tax Credit – Defined Amount – Owner’s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................................ 243 Water – Buildings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ........................................... 245 Water – Improvements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ......................................... 247 Water – Described Improvements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................................... 249 Water – Land Under Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................................... 251 Commercial Lender Group. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....................................... 253 Anti – Taint Endorsement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....................................... 255 Insured Mortgage Recording – Loan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .................................. 257 Pari Passu Mortgage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .......................................... 259 Option . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................................................ 262 Operative Law – 2006 Owner’s Policy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .................................. 264 Operative Law – 2006 Loan Policy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................................... 266
Form 47
Form 47.1
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ALTA
ENDORSEMENTS SAMPLES AND DESCRIPTIONS
STREET ASSESSMENTS – FORM 1-06
ALTA Endorsement — Form 1-06 is available only for loan policies. It is designed to insure the lender against loss or damage which the lender might sustain by reason of any undisclosed assessments for street improvements, either under construction or completed at the date of the policy, which have or could gain priority over the Insured Mortgage. This endorsement may be issued only upon a review both of the specific property being insured and of any street adjoining the property. The analysis must consider various matters, such as whether any street improvements are under construction or have been recently completed which might later generate an assessment lien.
ALTA Endorsement — Form 1-06 (Street Assessments – 6/17/2006)
Form 1-06
Street Assessments
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ALTA
ENDORSEMENTS SAMPLES AND DESCRIPTIONS
Endorsement 1-06 - Street Assessments Adopted 6-17-06
ENDORSEMENT 1-06 - STREET ASSESSMENTS
Attached to Policy No. __________ Issued by BLANK TITLE INSURANCE COMPANY
The Company insures against loss or damage sustained by the Insured by reason of the lack of priority of the lien of the Insured Mortgage over the lien of any assessments for street improvements under construction or completed at Date of Policy.
This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any of the terms and provisions of the policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy, or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous endorsement is inconsistent with an express provision of this endorsement, this endorsement controls. Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior endorsements.
[Witness clause optional]
BLANK TITLE INSURANCE COMPANY
By: _______________________________________ Authorized Signatory
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ALTA
ENDORSEMENTS SAMPLES AND DESCRIPTIONS
ZONING – FORM 3
ALTA Endorsement — Form 3
ALTA Endorsement — Form 3 is available for owner’s and loan policies. The endorsement is appropriate for both vacant and improved land. It provides insurance as to the zoning classification in which the Land is located and the uses permitted in that zone. The endorsement also insures against loss if any of those uses are prohibited by a court order that invalidates the zoning ordinance. However, the endorsement provides that there shall be no liability based on the invalidity of zoning ordinance until after a final decree of a court of competent jurisdiction adjudicates the invalidity of the ordinance, the effect of which is to prohibit the specified use or uses. The endorsement does not insure against loss suffered because the Land cannot be sold or mortgaged due to any zoning problem. Lack of compliance with zoning conditions and restrictions and the failure to obtain needed consents and authorizations are also not within the scope of the endorsement’s coverage. Though the requirements for the issuance of this endorsement vary from jurisdiction to jurisdiction and may include an outside attorney’s opinion, generally the Company will need to review a current and complete zoning map and zoning ordinance of the applicable municipality or township. A statement of the current and intended use of the Land may be requested from the owner or purchaser. Additional clearance materials and/or possible modifications to the endorsement may be necessary if the Land is being used for a non-conforming or special use, lies within a planned development, or was recently annexed by the applicable municipality.
ALTA Endorsement — Form 3 (Zoning – 07/01/2021)
Form 3
Zoning – Unimproved Land
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ALTA
ENDORSEMENTS SAMPLES AND DESCRIPTIONS
Endorsement 3 - Zoning 2021 v. 01.00 (07-01-2021)
ENDORSEMENT 3 - ZONING
This endorsement is issued as part of Policy Number __________ issued by BLANK TITLE INSURANCE COMPANY
1. For purposes of this endorsement, “Zoning Ordinance” means a zoning ordinance or zoning regulation of a political subdivision of the State that is in effect and applicable to the Land at the Date of Policy. 2. The Company insures against loss or damage sustained by the Insured in the event that, at the Date of Policy: a. According to the Zoning Ordinance, the Land is not classified Zone _____________________; b. The following use or uses are not allowed under that classification: _____________________. 3. There is no liability under this endorsement based on: a. The lack of compliance with any condition, restriction, or requirement contained in the Zoning Ordinance, including but not limited to the failure to secure necessary consents or authorizations as a prerequisite to the use or uses. Section 3.a. does not modify or limit the coverage provided in Covered Risk 5. b. The invalidity of the Zoning Ordinance until after a final decree of a State or federal court having jurisdiction adjudicating the invalidity, the effect of which is to prohibit the use or uses described in Section 2.b. c. The refusal of any person to purchase, lease, or lend money on the Title covered by this policy. This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any of the terms and provisions of the policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy, or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous endorsement is inconsistent with an express provision of this endorsement, this endorsement controls. Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior endorsements.
[Witness clause]
[Date]
BLANK TITLE INSURANCE COMPANY
By: _____________________________ [Authorized Signatory]
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ALTA
ENDORSEMENTS SAMPLES AND DESCRIPTIONS
ZONING – COMPLETED STRUCTURE – FORM 3.1
Unlike ALTA Endorsement — Form 3-06 (which is available for owner’s and loan policies that cover improved or unimproved property), ALTA Endorsement — Form 3.1 is only available for owner’s and loan policies that cover improved property.
This endorsement provides the same coverage as Form 3-06 and is subject to the same limitations. However, Form 3.1 also insures against losses arising from a court order which prohibits use of the Land for specified purposes permitted by the zoning or requires the removal or alteration of a structure located on the Land because certain physical characteristics (the “Bulk Requirements”) of either the Land or a structure located on the Land violate the ordinance. The Bulk Requirements are described in the endorsement and are, namely, (i) the area, width or depth of the Land as a building site for the structure, (ii) the floor space area of the structure, (iii) the setback of the structure from the property lines of the Land, (iv) the height of the structure, and (v) the number of parking spaces. A variation on the endorsement may be available which, in addition, provides coverage over the number of loading docks or spaces located on the Land. In addition to the submission and review of the materials required by the particular office or jurisdiction for the issuance of Form 3, a current and satisfactory ALTA survey of the Land, certified to Chicago Title Company, must be submitted. Additional clearance materials, and/or possible modifications to the endorsement, may be necessary if the Land is being used for a non-conforming or special use, lies within a planned development, was recently annexed by the applicable municipality, or if the structure is non- conforming.
ALTA Endorsement — Form 3.1 (Zoning – Completed Structure – 07/01/2021)
Form 3.1
Zoning – Completed Structure
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ALTA
ENDORSEMENTS SAMPLES AND DESCRIPTIONS
Endorsement 3.1 - Zoning - Completed Structure 2021 v. 01.00 (07-01-2021)
ENDORSEMENT 3.1 - ZONING - COMPLETED STRUCTURE
This endorsement is issued as part of Policy Number __________ issued by BLANK TITLE INSURANCE COMPANY
1. For purposes of this endorsement, “Zoning Ordinance” means a zoning ordinance or zoning regulation of a political subdivision of the State that is in effect and applicable to the Land at the Date of Policy. 2. The Company insures against loss or damage sustained by the Insured in the event that, at the Date of Policy: a. According to the Zoning Ordinance, the Land is not classified Zone _____________________; b. The following use or uses are not allowed under that classification: _____________________; c. There is no liability under Section 2.b. if the use or uses are not allowed as the result of any lack of compliance with any condition, restriction, or requirement contained in the Zoning Ordinance, including but not limited to the failure to secure necessary consents or authorizations as a prerequisite to the use or uses. Section 2.c. does not modify or limit the coverage provided in Covered Risk 5. 3. The Company further insures against loss or damage sustained by the Insured by reason of a final decree of a State or federal court having jurisdiction either prohibiting the use of the Land, with any existing structure, as specified in Section 2.b. or requiring the removal or alteration of the structure because, at the Date of Policy, the Zoning Ordinance has been violated with respect to any of the following matters: a. The area, width, or depth of the Land as a building site for the structure; b. The floor space area of the structure; c. A setback of the structure from the property lines of the Land;
d. The height of the structure; or e. The number of parking spaces.
4. There is no liability under this endorsement based on: a. The invalidity of the Zoning Ordinance until after a final decree of a State or federal court having jurisdiction adjudicating the invalidity, the effect of which is to prohibit the use or uses described in Section 2.b. b. The refusal of any person to purchase, lease, or lend money on the Title covered by this policy. This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any of the terms and provisions of the policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy, or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous endorsement is inconsistent with an express provision of this endorsement, this endorsement controls. Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior
endorsements. [Witness clause]
[Date] BLANK TITLE INSURANCE COMPANY
By: _____________________________ [Authorized Signatory]
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ALTA
ENDORSEMENTS SAMPLES AND DESCRIPTIONS
ZONING – LAND UNDER DEVELOPMENT – FORM 3.2
ALTA Endorsement — Form 3.2 is available for both owner’s and loan policies. This form extends the coverage available in the Form 3.1, which was only available for Land which contained existing improvements, to Land on which proposed buildings are to be constructed, if the proposed building is built according to site and elevation plans identified therein.
ALTA Endorsement — Form 3.2 (Zoning – Land Under Development – 7/01/2021)
Form 3.2
Zoning – Land Under Development
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ALTA
ENDORSEMENTS SAMPLES AND DESCRIPTIONS
Endorsement 3.2 - Zoning - Land Under Development 2021 v. 01.00 (07-01-2021)
ENDORSEMENT 3.2 - ZONING - LAND UNDER DEVELOPMENT
This endorsement is issued as part of Policy Number __________ issued by BLANK TITLE INSURANCE COMPANY
1. For purposes of this endorsement: a. “Improvement”: A building, structure, road, walkway, driveway, curb, subsurface utility, or water well existing at the Date of Policy or to be built or constructed according to the Plans that is or will be located on the Land, but excluding crops, landscaping, lawns, shrubbery, or trees. b. “Plans”: Those site and elevation plans made by [name of architect or engineer] dated ____, last revised ________, designated as [name of project] consisting of ___sheets. c. “Zoning Ordinance”: A zoning ordinance or zoning regulation of a political subdivision of the State that is in effect and applicable to the Land at the Date of Policy. 2. The Company insures against loss or damage sustained by the Insured in the event that, at the Date of Policy:
a. According to the Zoning Ordinance, the Land is not classified Zone _____________________; b. The following use or uses are not allowed under that classification: _____________________;
c. There is no liability under Section 2.b. if the use or uses are not allowed as the result of any lack of compliance with any condition, restriction, or requirement contained in the Zoning Ordinance, including but not limited to the failure to secure necessary consents or authorizations as a prerequisite to the use or uses. Section 2.c. does not modify or limit the coverage provided in Covered Risk 5. 3. The Company further insures against loss or damage sustained by the Insured by reason of a final decree of a State or federal court having jurisdiction either prohibiting the use of the Land, with any Improvement, as specified in Section 2.b. or requiring the removal or alteration of the Improvement because, at the Date of Policy, the Zoning Ordinance has been violated with respect to any of the following matters: a. The area, width, or depth of the Land as a building site for the Improvement; b. The floor space area of the Improvement; c. A setback of the Improvement from the property lines of the Land; d. The height of the Improvement; or e. The number of parking spaces. 4. There is no liability under this endorsement based on: a. The invalidity of the Zoning Ordinance until after a final decree of a State or federal court having jurisdiction adjudicating the invalidity, the effect of which is to prohibit the use or uses described in Section 2.b. b. The refusal of any person to purchase, lease, or lend money on the Title covered by this policy.
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ALTA
ENDORSEMENTS SAMPLES AND DESCRIPTIONS
Endorsement 3.2 - Zoning - Land Under Development 2021 v. 01.00 (07-01-2021)
This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any of the terms and provisions of the policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy, or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous endorsement is inconsistent with an express provision of this endorsement, this endorsement controls. Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior endorsements.
[Witness clause]
[Date]
BLANK TITLE INSURANCE COMPANY
By: _____________________________ [Authorized Signatory]
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ALTA
ENDORSEMENTS SAMPLES AND DESCRIPTIONS
ZONING – COMPLETED IMPROVEMENT – NON-CONFORMING USE – FORM 3.3
The ALTA 3.3 is available for both owners and loan policies. This endorsement is designed for issuance on Land where there is known non-conforming use under the zoning classification for the Land and insures against loss or damage if a specified non-conforming use is not allowed because it violates a municipal or county zoning ordinance or zoning regulation. In addition, this endorsement insures against a final court order either prohibiting the present non-conforming use or requiring removal or alteration of the existing improvement because the non-conforming use violates a zoning ordinance or zoning regulation as to: (i) area, width or depth of the Land as a building site for the building, (ii) floor space area of the building, (iii) setback of the building, (iv) height of the building, or (v) number of parking spaces.
ALTA Endorsement — Form 3.3 (Zoning – Completed Improvement – Non-Conforming Use – Adopted 07/01/2021)
Form 3.3
Zoning – Completed Improvement – Non-Conforming Use
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ALTA
ENDORSEMENTS SAMPLES AND DESCRIPTIONS
Endorsement 3.3 - Zoning Completed Improvement - Non-Conforming Use 2021 v. 01.00 (07-01-2021)
ENDORSEMENT 3.3 - ZONING COMPLETED IMPROVEMENT - NON-CONFORMING USE
This endorsement is issued as part of Policy Number __________ issued by BLANK TITLE INSURANCE COMPANY
1. For purposes of this endorsement: a. “Improvement”: A building located on the Land at the Date of Policy. b. “Non-Conforming Use”: The use of the Land described in Section 2.a. existing at the Date of Policy and before the Zoning Ordinance was enacted, although the use is not authorized in the Zoning Ordinance. c. “Zoning Ordinance”: A zoning ordinance or zoning regulation of a political subdivision of the State that is in effect and applicable to the Land at the Date of Policy. 2. The Company insures against loss or damage sustained by the Insured resulting from: a. The following Non-Conforming Use not being allowed by the governing political subdivision of the State because the Non-Conforming Use violates the Zoning Ordinance: [Drafting Instruction: Describe the existing Non-Conforming Use] b. A final decree of a State or federal court having jurisdiction either prohibiting the Non-Conforming Use or requiring the removal or alteration of the Improvement because, at the Date of Policy, the Non Conforming Use violates the Zoning Ordinance with respect to any of the following matters: i. The area, width, or depth of the Land as a building site for the Improvement; ii. The floor space area of the Improvement; iii. A setback of the Improvement from the property lines of the Land; iv. The height of the Improvement; or v. The number of parking spaces. 3. Section 2 does not insure against loss or damage and the Company will not pay costs, attorneys’ fees, or expenses resulting from: a. The lack of compliance with any condition, restriction, or requirement contained in the Zoning Ordinance regarding the continuation or maintenance of the Non-Conforming Use; b. The failure to secure necessary consents or authorizations as a condition for continuing the Non Conforming Use; c. The invalidity of the Zoning Ordinance, the effect of which is to prohibit the Non-Conforming Use; d. Any change, cessation, abandonment, or replacement of the Non-Conforming Use or an Improvement; e. A prohibition to restore an Improvement; f. The violation of or the lack of compliance with any law, order, or regulation regarding the continuation or maintenance of the Non-Conforming Use or an Improvement; g. Any law, order, or regulation requiring the amortization, expiration, or elimination by passage of time of the Non-Conforming Use; or h. Any refusal to purchase, lease, or lend money on the Title.
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ALTA
ENDORSEMENTS SAMPLES AND DESCRIPTIONS
Endorsement 3.3 - Zoning Completed Improvement - Non-Conforming Use 2021 v. 01.00 (07-01-2021)
This endorsement is issued as part of the policy. Except as this endorsement expressly states, it does not (i) modify any of the terms and provisions of the policy, (ii) modify any prior endorsement, (iii) extend the Date of Policy, (iv) insure against loss or damage exceeding the Amount of Insurance, or (v) increase the Amount of Insurance. To the extent a provision of the policy or any prior endorsement is inconsistent with an express provision of this endorsement, this endorsement controls. Otherwise, this endorsement is subject to all of the terms and provisions of the policy and any prior endorsement.
[Witness clause]
[Date]
BLANK TITLE INSURANCE COMPANY
By: ______________________________ [Authorized Signatory]
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ALTA
ENDORSEMENTS SAMPLES AND DESCRIPTIONS
ZONING – NO ZONING CLASSIFICATION – FORM 3.4
The ALTA 3.4 is available for both owners and loan policies. This endorsement is designed for issuance on Land where there is no zoning classification and insures against loss or damage if a specified use is not allowed because it violates a municipal or county zoning ordinance or zoning regulation. In addition, this endorsement insures against a final court order either prohibiting the present use or requiring removal or alteration of the existing building or structure because the use violates a zoning ordinance or zoning regulation as to: (i) area, width or depth of the Land as a building site for the structure, (ii) floor space area of the structure, (iii) setback of the structure, (iv) height of the structure, or (v) number of parking spaces.
ALTA Endorsement — Form 3.4 (Zoning – No Zoning Classification – Adopted 07/01/2021)
Form 3.4
Zoning – No Zoning Classification
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ALTA
ENDORSEMENTS SAMPLES AND DESCRIPTIONS
Endorsement 3.4 - Zoning - No Zoning Classification [2021 v. 01.00 (07-01-2021)]
ENDORSEMENT 3.4 - ZONING - NO ZONING CLASSIFICATION
This endorsement is issued as part of Policy Number __________ issued by BLANK TITLE INSURANCE COMPANY
1. For purposes of this endorsement: a. “Improvement”: A building or structure located on the Land at the Date of Policy. b. “Zoning Ordinance”: A zoning ordinance or zoning regulation of a county or municipality of the State that is in effect and applicable to the Land at the Date of Policy. 2. The Company insures against loss or damage sustained by the Insured resulting from: a. The following use not being allowed by the county or municipality of the State because the use violates the Zoning Ordinance: [Drafting Instruction: Describe the existing use] b. A final decree of a State or federal court having jurisdiction either prohibiting the use or requiring the removal or alteration of the Improvement because, at the Date of Policy, the use violates the Zoning Ordinance with respect to any of the following matters: i. The area, width, or depth of the Land as a building site for the Improvement; ii. The floor space area of the Improvement; iii. A setback of the Improvement from the property lines of the Land; iv. The height of the Improvement; or v. The number of parking spaces. 3. Section 2 does not insure against loss or damage and the Company will not pay costs, attorneys’ fees, or expenses resulting from: a. Any other regulation or restriction of use or activity on the Land: i. Imposed by a covenant, condition, restriction, or limitation on the Title; or ii. Imposed by a state or federal law, statute, code, enactment, ordinance, permit, regulation, rule, order, or court decision; b. Any refusal to purchase, lease, or lend money on the Title; or c. Any zoning ordinance or zoning regulation adopted after the Date of Policy.
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ALTA
ENDORSEMENTS SAMPLES AND DESCRIPTIONS
Endorsement 3.4 - Zoning - No Zoning Classification [2021 v. 01.00 (07-01-2021)]
This endorsement is issued as part of the policy. Except as this endorsement expressly states, it does not (i) modify any of the terms and provisions of the policy, (ii) modify any prior endorsement, (iii) extend the Date of Policy, (iv) insure against loss or damage exceeding the Amount of Insurance, or (v) increase the Amount of Insurance. To the extent a provision of the policy or any prior endorsement is inconsistent with an express provision of this endorsement, this endorsement controls. Otherwise, this endorsement is subject to all of the terms and provisions of the policy and any prior endorsement.
[Witness clause]
[Date]
BLANK TITLE INSURANCE COMPANY
By: ______________________________ [Authorized Signatory]
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ALTA
ENDORSEMENTS SAMPLES AND DESCRIPTIONS
CONDOMINIUM – ASSESSMENTS PRIORITY – FORM 4
ALTA Endorsement — Form 4 is available only for loan policies. It provides insurance to a mortgage lender whose loan is secured by a condominium unit.
This endorsement details seven matters over which insurance is being provided including priority of the Insured Mortgage over future assessments. Some of the matters would be covered by the standard loan policy without any endorsement. Nevertheless, the endorsement states each such coverage affirmatively. This endorsement may be issued only after the relevant aspects of the condominium project in which the unit is located have been reviewed. Of particular import is the necessity of obtaining satisfactory evidence that there are no unpaid liens for any condominium charges or assessments and that any right of first refusal which could have been exercised at date of policy has been duly waived.
If, after reviewing the relevant documentation it is determined that one or more of the coverages may not be provided, it may be possible in some jurisdictions to issue a modified version of this endorsement which deletes those unavailable coverages.
ALTA Endorsement — Form 4 (Condominium – Assessments Priority – 07/01/21)
Form 4
Condominium – Assessments Priority
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ALTA
ENDORSEMENTS SAMPLES AND DESCRIPTIONS
Endorsement 4 - Condominium - Assessments Priority 2021 v. 01.00 (07-01-2021)]
ENDORSEMENT 4 - CONDOMINIUM - ASSESSMENTS PRIORITY
This endorsement is issued as part of Policy Number __________ issued by BLANK TITLE INSURANCE COMPANY
The Company insures against loss or damage sustained by the Insured by reason of:
1. The failure of the unit identified in Schedule A and its common elements to be part of a condominium within the meaning of the condominium statutes of the State in which the unit and its common elements are located. 2. The failure of the documents required by the State condominium statutes to comply with the requirements of the statutes to the extent that such failure affects the Title to the unit and its common elements. 3. Present violations of any restrictive covenants that restrict the use of the unit and its common elements and that are contained in the condominium documents or the forfeiture or reversion of Title by reason of any provision contained in the restrictive covenants. As used in Section 3, the words “restrictive covenants” do not refer to or include any covenant, condition, or restriction: a. relating to obligations of any type to perform maintenance, repair, or remediation on the Land, or b. pertaining to environmental protection of any kind or nature, including hazardous or toxic matters, conditions, or substances, except to the extent that a notice of a violation or alleged violation affecting the Land has been recorded in the Public Records at the Date of Policy and is not excepted in Schedule B. 4. The priority of any lien for charges and assessments provided for in the State condominium statutes and condominium documents at the Date of Policy over the lien of any Insured Mortgage identified in Schedule A. 5. The failure of the unit and its common elements to be entitled by law to be assessed for real property taxes as a separate parcel. 6. Any obligation to remove any improvements that exist at the Date of Policy because of any present encroachments or because of any future unintentional encroachments of the common elements upon any unit or of any unit upon the common elements or another unit. 7. The failure of the Title by reason of a right of first refusal to purchase the unit and its common elements that was exercised or could have been exercised at the Date of Policy.
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ALTA
ENDORSEMENTS SAMPLES AND DESCRIPTIONS
Endorsement 4 - Condominium - Assessments Priority 2021 v. 01.00 (07-01-2021)]
This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any of the terms and provisions of the policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy, or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous endorsement is inconsistent with an express provision of this endorsement, this endorsement controls. Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior endorsements.
[Witness clause]
[Date]
BLANK TITLE INSURANCE COMPANY
By: ______________________________ [Authorized Signatory]
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ALTA
ENDORSEMENTS SAMPLES AND DESCRIPTIONS
CONDOMINIUM – CURRENT ASSESSMENTS – FORM 4.1
ALTA Endorsement — Form 4.1 is available for owner’s and loan policies. It provides insurance to owners of condominium units and to their mortgage lenders.
This endorsement contains the same basic insurance coverages as detailed in Form 4. The only difference is the Form 4.1 does not insure the priority of the lien of the Insured Mortgage over future condominium assessments. Rather, it insures the lender against loss or damage by reason of the priority of any lien for condominium charges or assessments which exist at date of policy over the lien of the Insured Mortgage. As is the case with the Form 4, this endorsement may be issued only after the relevant aspects of the condominium project in which the unit is located have been reviewed. Of particular import is the necessity of obtaining satisfactory evidence that there are no unpaid liens for any condominium charges or assessments and that any right of first refusal which could have been exercised at date of policy has been duly waived.
If, after reviewing the relevant documentation it is determined that one or more of the coverages may not be provided, it may be possible in some jurisdictions to issue a modified version of this endorsement which deletes those unavailable coverages.
ALTA Endorsement — Form 4.1 (Condominium – Current Assessments – 07/01/2021)
Form 4.1
Condominium – Current Assessments
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