A title endorsement is an addition or limitation of coverage that is attached to a title insurance policy. Endorsements provide coverage that tailors the policy to fit the needs of the insured for a specific transaction.
Following are common endorsements you will find.
100-06 – Restrictions, Encroachments & Minerals
This endorsement offers an explicit extension of coverage to an ALTA Extended Coverage Loan Policy by adding insurance for certain recorded and “off-record” matters. The coverage is extended for Covenants, Conditions, and Restrictions (CC&Rs): encroachments and the rights to use the land surface for mineral developments. This endorsement is not issued in conjunction with policies covering raw land or construction loans.
100.12-06 – CC&R’s, Right of Reversion
Also used with ALTA policies. Form 100.12 assures a lender or owner that existing CC&Rs do not contain any enforceable reverter, right of re-entry or power of termination.
100.18-06 – CC&R’s, Right of Reversion
Provides insured ALTA lender or owner with coverage against loss by reason of the exercise or attempt to exercise reverter rights in CC&Rs.
100.23-06 – Minerals, Surface Damage
Provides insured ALTA lender with coverage against loss by reason of the exercise of surface rights for the extraction or redevelopment of minerals leased under an oil gas lease.
100.29-06 – Minerals, Surface Damage
Provides insured ALTA lender with coverage against loss by reason of the exercise of surface rights for the extraction or redevelopment of minerals expected from the description of the land or shown as a reservation in Schedule B.
103.1-06 – Easement – Damage or Enforced Removal
Provides insured lender with coverage against loss by reason of the exercise of the right of use or maintenance or a particular easement by the easement holder.
103.3-06 – Encroachments, None Exist
Provides insured lender with coverage against loss by reason of the forced removal of improvements which encroach upon a particular easements.
103.7-06 – Land Abuts Street
Provides insured owner or lender with assurance that the land described in Schedule A abuts upon a specific, physically open public street.
104.1-06 – Assignment of Mortgage
Provides assignee of the insured mortgage with assurance concerning (a) validity of a recorded assignment transferring the beneficial interest to the named assured assignee: and (b) full or partial reconveyances, modification or subordination of the insured mortgage.
110.5-06 – Modification of Mortgage
Provides insured ALTA lender with assurance concerning proper modification of the insured mortgage, including express priority coverage.
110.9-06 – Environmental Protection Lien
Provides insured ALTA residential lender with coverage against loss by reason of lack of priority over (a) any federal or state environmental protection set forth in Schedule B, and (b) any state environmental protection lien providing for by any state stature in effect at Date of Policy, except as provided for by state statues specified in the endorsement.
111.10-06 – Revolving Credit Loan – Optional Advance
Assured lender that future advances made under a “revolution line of credit” shall have the same priority as do advanced made as of Date of Policy.
111.5-06 – Variable Rate Mortgage
Provides insured ALTA variable rate mortgage lender with coverage against loss by reason of (a) invalidity or unenforceability of the insured mortgage resulting from the terms therein providing for changes in the rate of interest, or (b) loss of priority of the insured mortgage lien caused by the changed in the rage of interest, unpaid interest added to principal and/or interests on interest.
115-06 – Condominium
Provides insured lender with assurance that the estate or interest covered by the policy is a condominium, in fee, and such is entitled to be assessed and taxed as a separate parcel.
116-06 – Designation of Improvements, Address
An Address Endorsement used with ALTA policies, designating the street address of the land insured and specifying the type of improvements on said land