Title Insurance Endorsements Coverage Descriptions & Fees

Transcription

1 Title Insurance Endorsements Coverage Descriptions & Fees

2

3 This Booklet has been prepared by Lawyers Title to assist you in understanding endorsements issued in conjunction with a title insurance policy. Use this information as a guide. It does not contain a complete list of all available endorsements. Endorsements may be defined as additions to a title insurance policy. They are most often used to expand the coverage provided under the policy. Occasionally, however, they are used to limit the policy coverage. Endorsements may be issued with either a Standard or Extended Coverage Policy. Also, they may be issued in favor of an owner, lender or both, depending on the nature of the coverage. Endorsements are negotiable and therefore should be requested early in the transaction. Endorsement coverages and forms are designed and used by the various land title associations. Lawyers Title Insurance Corporation, issues endorsements created by the American Land Title Association (ALTA) and the California Land Title Association (CLTA). In order to easily find one of the CLTA Endorsements, they have been grouped under the same number series. For example, the 100 series cover Restriction (CC&Rs), the 101 and 102 series cover Construction and Mechanics Lien problems, the 103 series cover Easement and the 104 series cover Deed of Trust and Assignment. The following pages list the endorsements which have been filed with the California Department of Insurance and are available to our customers. Questions regarding price, endorsements forms and coverages should be directed to the Title Department or your Escrow Officer.

4 Title Insurance Endorsements 100 Comprehensive-Improved Land ALTA -issued only at date of policy Comprehensive STANDARD Comprehensive - ALTA 9 ALTA Restrictions/Loan - ALTA 9.3 ALTA -issued only at date of policy -issued only at date of policy Restrictions-Unimproved/Owner s - ALTA 9.4 ALTA OWNER S $ Restrictions-Improved/Owner s - ALTA 9.5 ALTA OWNER S $ Present violation of particular restrictions ALTA STANDARD 10% Present violation of particular restrictions OWNER S Present & future violation of restrictions OWNER S Present violation of particular restrictions ALTA OWNER S STANDARD OWNER S Present & future violation of restrictions OWNER S Restrictions, Encroachments, Minerals-Unimproved Land ALTA 9.1 ALTA OWNER S $ Restrictions, Encroachments, Minerals-Improved Land ALTA 9.2 ALTA OWNER S $ Right of Enforcement under CC&R is ineffective OWNER S $ Upkeep assessments subordinate ALTA $ Modification of restrictions OWNER S 10%

5 Coverage, Descriptions, and Fees Right of re-entry ineffective and unmarketability of title because of right of entry $ No present violations of CC&R ALTA OWNER S STANDARD OWNER S ALTA STANDARD 10% Present violations of CC&R attempted enforcement ALTA OWNER S STANDARD OWNER S ALTA STANDARD 10% Approval of plans required by CC&R ALTA OWNER S STANDARD OWNER S ALTA STANDARD 10% Right of Surface Entry under oil lease ALTA 10% No Right of Surface Entry-under oil lease ALTA $ Subsurface Oil Lease does not violate CC&R ALTA Surface entry top 500 feet F.H.A. STANDARD OWNER S 10% Present violation of particular restriction ALTA Violation of particular provisions of CC&R by future construction Mineral rights damage to improvements OWNER S OWNER S 10% maximum:$ $ Priority Insurance M/L STANDARD 10% M/L Insurance after Notice of Completion OWNER S

6 Title Insurance Endorsements M/L Insurance after Notice of Completion 10% M/L Insurance- No Notice of Completion 10% M/L Insurance- No Notice of Completion CLTA OWNER S M/L Insurance- Notice regular and no record liens, limited liability 10% based on amount of endorsement, plus $5.00 for each lien, plus $5.00 for each parcel M/L Insurance-Notice regular and no record liens, liability same as policy 10% plus $5.00 for each lien, plus $5.00 for each parcel M/L Insurance-Priority over M/Ls arising out of off-site work, financing by separate loan STANDARD 15% M/L arising out of work referred to in Notice of Completion ALTA OWNER S 10% based upon the amount of the endorsement Priority over M/L arising out of work referred to in Notice of Completion ALTA 10% based upon the amount of the endorsement Priority over M/L arising out of work under construction or completed ALTA 10% based upon the amount of the endorsement M/L arising out of work under construction or completed OWNER S 10% based upon the amount of the endorsement M/L Insurance-after Notice of Completion 10% M/L Insurance-after Notice of Completion ALTA Construction Not authorized to be issued

7 Coverage, Descriptions, and Fees M/L Insurance -No Notice of Completion ALTA Construction Not authorized to be issued M/L Insurance-Notice of Completion recorded on a portion of the land ALTA Construction Not authorized to be issued M/L Insurance -No Notice of Completion M/L Insurance-Notice of Completion recorded ALTA Construction ALTA Construction Not authorized to be issued Not authorized to be issued Foundations-no violation, CC&R, no encroachments 10% (minimum $100.00, maximum $750.00) 1-4 Family Residential Foundations-no violation CC&R, no encroachments onto easements or adjoining land Property: 15%, Max $150.00; Other Property 15%, Max $ Foundations-no violation, CC&R, no encroachments on portion of land described in policy 10% (minimum $100.00, maximum $750.00) Foundations-no violation, CC&R, no encroachment on portion of land described in policy or easements 10% (minimum $100.00, maximum $750.00) Easements, damages from use or maintenance 1-4 Family Property: $25.00; Other Property: Min. $ Easement, removal of improvements 1-4 Family Property: $25.00; Other Property: Min. $ Easements, providing ingress & egress OWNER S or $50.00 if issued with original Policy, $ if issued subsequent to policy

8 Title Insurance Endorsements Surface rights to extract water OWNER S or 1-4 Family Property: $25.00; Other Property: Min. $ No encroachments on specific easements ALTA 10% Land abuts on existing street OWNER S or Damage to present or future improvements ALTA Encroachment on public street ALTA $50.00 if issued with original Policy, $ if issued subsequent to policy 10% (minimum $100.00) 10% (minimum $100.00) Surface owner insured against use of surface by owner of land below the horizontal division of land ALTA OWNER S or $50.00 if issued with Access & Entry ALTA Form 17 OWNER S or original Policy, $ if issued subsequent to policy Indirect Access & Entry ALTA Form 17.1 OWNER S or $50.00 if issued with original Policy, $ if issued subsequent to policy 104 Assignment of beneficial interest ALTA 40%, but not less than Standard Minimum Charge. Maximum $ A Assignment of beneficial interest STANDARD 30%, but not less than Standard Minimum Charge. Maximum $ Assignment of beneficial interest $150.00

9 Coverage, Descriptions, and Fees Collateral Assignment of beneficial interest $ Assignment of Lessor s interest $ Assignment of Rents $ Limited Assignment of beneficial interest ALTA 30%, but not less than Standard Minimum Charge. Maximum $ Limited Assignment of beneficial interest STANDARD, but not less than Standard Minimum Charge. Maximum $ Limited Assignment of beneficial interest ALTA $ Limited Collateral Assignment of beneficial interest ALTA $ Insuring two or more deeds of trust ALTA Insuring two or more deeds of trust STANDARD 106 Highway policy State of California $ C Highway policy State of California $ Highway policy State of California $ C Highway policy State of California $ Highway policy State of California $50.00

10 Title Insurance Endorsements 106.2C Highway policy State of California $ Allocation of Liability OWNER S or Increased liability OWNER S or The insurance rate applicable for additional amount of insurance Leasehold Improvements ALTA OWNER S or 10%, minimum $ Naming an additional insured OWNER S or if attached at original issue, $ per subsequent issue Naming an additional insured OWNER S or No Charge Non-Merger ALTA 10%, Maximum $ Additional advance STANDARD See Section Additional advance ALTA See Section Additional advance DVA DVA-OWNER Applicable rate based upon type of policy and amount of advance Revolving Credit increased limit ALTA Applicable rate based on type of policy and amount of increased limit 109 No transfer of lessor s benefits in community lease STANDARD OWNER S or Encumbrance deleted OWNER S or Charge dependent upon coverage to be given. Minimum $100.00

11 Coverage, Descriptions, and Fees Release of mineral interest to owner surface ALTA OWNER STANDARD OWNER ALTA STANDARD 10% Validity of Modification ALTA See Section Modification of Deed of Trust ALTA See Section Modification of Deed of Trust STANDARD See Section Enforcement of lien or encumbrance OWNER S or Charge dependent upon coverage to be given. Minimum $ Environmental Lien Modification and additional advance ALTA See Section Modification of Deed of Trust ALTA See Section Partial Reconveyance-No Impairments Partial Reconveyance-No Impairments Subordination Agreement-No Impairments 15% based on unpaid balance of encumbrances (minimum $100.00, maximum $250.00) 15% based on unpaid balance of encumbrances (minimum $100.00, maximum $250.00) 10% if attached concurrent with issuance of policy. 30% if attached subsequent to the issuance of policy.

12 Title Insurance Endorsements Partial Reconveyance, no impairments of lien no-encroachment designation of improvements, minimum $ Housing and Urban Development Endorsement 10% based on the unpaid balance of the loan, (minimum $100.00, maximum $250.00) Renegotiable Rate Renegotiable Rate Renegotiable Rate Negative Amortization ALTA FNMA Balloon Revolving Credit (Optional Advances) Revolving Credit (Obligatory Advances) $ Future Advance - Priority ALTA Form 14 ALTA $ Future Advance Knowledge ALTA Form 14.1 ALTA $ Future Advance - Letter of Credit ALTA Form 14.2 ALTA $ Future Advance - Reverse Mortgage ALTA 14.3 ALTA $ Bondholder s Policy STANDARD Bondholder s Policy ALTA

13 Coverage, Descriptions, and Fees Bondholder s Policy STANDARD 114 Coinsurance OWNER S or Division of fees between title companies by agreement Coinsurance, joint and several liability OWNER S or Division of fees between title companies by agreement Coinsurance-Combination several, and joint and several OWNER S or Division of fees between title companies by agreement Coinsurance-Single Policy ALTA Form OWNER S or Division of fees between title companies by agreement 115 Condominium Assessment OWNER S or $ Condominium Endorsement ALTA if attached concurrently with issuance of policy P.U.D. Endorsement ALTA if attached concurrently with issuance of policy. 116 Designation of improvements, land locations ALTA if attached concurrently with issuance of policy. If attached subsequent to issuance of policy, 15% on single policies Location ALTA Form 22 OWNER S or No Charge if attached concurrently with policy Location and Map ALTA Form 22.1 OWNER S or No Charge if attached concurrently with policy

14 Title Insurance Endorsements Description after map OWNER S 10% Contiguity - Other Land ALTA 19.1 OWNER S or $ Contiguity - Multiple Parcels ALTA 19 OWNER S or No Additional Charge Manufactured Housing ALTA Form 7 OWNER S or Manufactured Housing/Conversion ALTA Form Manufactured Housing/Conversion ALTA Form 7.2 OWNER S Manufactured Housing OWNER S or Subdivision Map Endorsement OWNER S or $50.00 if issued concurrently with policy. $50.00 if issued concurrently with policy. $50.00 if issued concurrently with policy. $50.00 if issued concurrently with policy. 10%, Maximum: $1, Aggregation ALTA No Charge 119 Lease and Trust Deed insurance on both, maximum $ Leasehold OWNER S or No Charge Validity of Lease ALTA, minimum $ Circuity of Lien makes priority doubtful ALTA No Charge Bondholders-Valid Sublease ALTA 10% Leasehold Owner s ALTA 13 ALTA OWNER S No Charge Leasehold Loan ALTA 13.1 ALTA No Charge

15 Coverage, Descriptions, and Fees Oil Co. Endorsement. Trust Deed subordinate to lease and note not examined OWNER S or 122 Priority of Advance over intervening matters $50.00 per endorsement if billed concurrently with issuance of policy. If billed subsequent to issuance of policy: 10% based upon amount of advance providing the base policy is for full amount of loan. Min. $50.00 per issue. Max. $ Priority of Advance over intervening matters-limitation of liability Base policy is in the amount of initial advance only, requiring an increase in liability, 70% based upon amount advanced, minimum $ Priority of obligatory advances over other matters - base policy written for full amount of indebtedness secured by insured mortgage. ALTA $100 per issue Priority of obligatory advances over other matters - liability increased by amount of advance. ALTA 60% based upon amount of advance, minimum $ Zoning-improved or unimproved property OWNER S or Zoning-Improved property OWNER S or 10% - Minimum $ % - Minimum $ Affirmative and Negative Covenants in Deeds or Agreements, except Leases (Civil Code 1468) OWNER S 10% Lessor s Affirmative Covenants (Civil Code 1469) OWNER S 10% Note: Will include the if issued concurrently at no additional charge.

16 Title Insurance Endorsements Lessor s Negative Covenants (Civil Code 1470) OWNER S 10% Note: Includes if issued concurrently at no additional charge. 125 Truth-in-Lending Right of Rescission 126 Additional protection for homeowners - single family residence STANDARD OWNER S Additional protection for homeowners - condominium STANDARD OWNER S 10% based on amount of loan, minimum $100.00, maximum $ Not authorized to be issued Not authorized to be issued Any type of residential structure, whether or not occupied by the insured owner STANDARD OWNER S Not authorized to be issued 127 Non-imputation - Full Equity Transfer ALTA Form 15 ALTA OWNER S $ Non-imputation - Additional Insured ALTA Form 15.1 ALTA OWNER S $ Non-imputation - Partial Equity Transfer ALTA Form 15.2 ALTA OWNER S $ Mezzanine Financing ALTA Form 16 ALTA OWNER S $1, Single Tax Parcel ALTA Form 18 OWNER S $ Multiple Tax Parcels ALTA Form 18.1 OWNER S or $ First Loss - Multiple Parcels ALTA Form 20 ALTA $ Creditor s Rights ALTA Form 21 OWNER S or No Additional Charge 132 Usury $500.00

17 Coverage, Descriptions, and Fees JR1 JR2 ALTA Residential Limited Coverage Junior Loan Policy Supplemental Coverage ALTA Residential Limited Coverage Junior Loan Policy Supplemental Coverage LIMITED See Section 3.9 LIMITED See Section Construction Loan Compliance ALTA 10% 212 Date-Down or OWNER S See Sections 2.2 or Extension of Due Date (110.5 modified) ALTA $ Foreign Currency ALTA 217 Inflation or OWNER S 218 Recharacterization 50% based upon increased amount of insurance 10%, maximum $5, Shared Appreciation 221 Interest Rate Swap 10%, maximum $5, Mobile Home Land and Unit 230 Partnership-Excess Insurance OWNER S 233 Partnership-Insuring interest of Incoming partner OWNER S 242 Eliminates Access Coverage OWNER S or 243 Eliminates Doing Business Exclusion ALTA 10%, minimum $100 maximum $500

18 Title Insurance Endorsements 245 Optionee ALTA OWNER S 247 Comprehensive lender s coverage-mobile home ALTA 248 Fairway OWNER S. Issued only at date of policy. Policy to be issued for entire loan amount. 10%, maximum $2, Last Dollar ALTA & STANDARD $ Concurrent lender added as additional insured under ALTA Residential Owner s policy ALTA Residential 251 Priority coverage for mortgages securing letters of credit, surety bonds or other unconditional obligations ALTA 10%, minimum $ Variable rate mortgage with option to convert to fixed rate ALTA 255 First Loss ALTA & STANDARD 10%, minimum $ Vesting - Credit Unions LIMITED $ Secondary Insurance Endorsement (Rev ) 35%, Standard Minimum Charge Applies 259 LTSG Taxes & Assessments Endorsement LTD TSG $ LTSG Publication Endorsement LTD TSG $ F/F TSG Additional Information F/F TSG $ F/F TSG Special Assessments Endorsement F/F TSG $75.00

19 Coverage, Descriptions, and Fees Notes

20