POLICY ENDORSEMENTS

ALTA policy forms provide coverage for the usual or standard type of real estate transaction.

However, with the development of the industry, and the increasing complexity of both the conveyancing and the financing in transactions, there are situations not applicable to the ALTA forms.

In an effort to help the title industry tailor the ALTA forms, so they are even more useful in larger transaction, ALTA has created various endorsements or groups of endorsements to cover specific situations.

These endorsements include: coverage for zoning, condominiums and planned unit developments , variable rate mortgages, residential environment liens, and special restriction, easement and mineral problems.

For information on the individual endorsements, see details below:

Access

Insures against loss sustained by the Insured if the land does not abut on a physically open street.

Requirements: The name of the street is to be entered in the endorsement (Loan Policy).

Premium: $25.00

Additional Interest

Insures against loss or damage sustained by reason of a final decree that the mortgage, as it secures additional interest, is invalid or unenforceable or does not share the same priority as is afforded the principal of the loan secured by the mortgage.

Requirements:  The mortgage must secure amounts defined as "additional interest" (Loan Policy).

Premium: The amount of additional interest coverage, as set forth the endorsement, is in addition to the policy amount and is charged at the regular Loan policy rate.

Cluster

Aggregates the amount of insurance available under several policies insuring the same loan.

Requirements: Mortgages on multiple sites need to be cross-defaulted and cross-collateralized, unless cross-collateralization would increase the amount of the mortgage recording tax. Only mortgage policies of the same title insurer can be "clustered". Applicable mortgage recording tax must be paid. Policy amounts must reflect either fair market value or be computed on a uniformly applied loan-to-value ratio (Loan Policy).

Premium: $25.00

Comprehensive (Alta 9) (Restrictions, Encroachments, Minerals)

Affords assurances in connection with recorded covenants and restrictions, setback lines, mineral rights, easements and the maintenance of existing improvements.

Requirements: An updated, certified survey is to be reviewed in conjunction with the recorded easements and restrictive covenants (Loan Policy).

Premium: 10% of the unreduced (straight) loan policy premium.

Condominium

Affords assurance that the unit is part of a validly organized condominium. Insures against outstanding common charges and assessments and any right of refusal to purchase and against the consequences of either an encroachment of a unit or a violation of restrictive covenants.

Requirements:  Provide any required waiver of a right of first refusal and consent to mortgage. Confirm that there are no outstanding common charges or assessments (Owner's and Loan Policies).

Premium: $25.00

Contiguity

Insures against loss or damage if the parcels of land described in the policy are not contiguous to each other along their common boundary line(s).

Requirements: Provide any required waiver of a right of first refusal and consent to mortgage. Confirm that there are no outstanding common charges or assessments (Owner's and Loan Policies).

Premium: $25.00

Contract Vendee (Commercial)

Insures the validity and enforceability of a contract of sale to purchase commercial property.

Requirements: The contract or a memorandum of contract must be recorded (Owner's Policy).

Premium: The policy to be issued at regular fee policy premium rates must be for an amount not less than the down payment specified in the contract to an amount not exceeding the contract price and the cost of contemplated improvements and other development and construction costs.

When issued without a TIRSA Leasehold or TIRSA Cooperative endorsement, the premium is 120% of the regular Owner's policy rate. Continuations searches to downdate the policy in excess of five are $200 each. The regular Owner's premium paid, not including the additional 20% charge, will be a credit on a later issued Owner's policy.

When an Owner's policy with the endorsement is issued simultaneously with an Owner's Policy that includes TIRSA Leasehold or TIRSA Cooperative endorsement, the premium is 30% of the otherwise applicable charge (30% of 120%).

Contract Vendee (Residential)

Insures the validity and enforceability of a contract of sale to purchase commercial property.

Requirements: The contract or a memorandum of contract must be recorded (Owner's Policy).

Premium: The policy to be issued at regular fee policy premium rates must be for an amount not less than the down payment specified in the contract to an amount not exceeding the contract price and the cost of contemplated improvements and other development and construction costs. 

When issued without a TIRSA Leasehold or TIRSA Cooperative endorsement, the premium is 120% of the regular Owner's policy rate. Continuations searches to downdate the policy in excess of five are $200 each. The regular Owner's premium paid, not including the additional 20% charge, will be a credit on a later issued Owner's policy.

When an Owner's policy with the endorsement is issued simultaneously with an Owner's Policy that includes TIRSA Leasehold or TIRSA Cooperative endorsement, the premium is 30% of the otherwise applicable charge (30% of 120%).

Cooperative - Loan Policy

Affords assurance that the cooperative corporation is duly formed and holds title to the land and building of which the unit is a part. Insures against outstanding maintenance charges and assessments, and any right of first refusal to purchase. Insures against the consequences of either an encroachment of the building or a violation of restrictive covenants. Provides a means to determine the value of the estate insured in the event of a loss.

Requirements: Provide any required waiver of a right of first refusal and consent to a mortgage. Confirm that there are no outstanding maintenance charges or assessments (Owner's and Loan Policies).

Premium: No Charge.

Cooperative - Owners Policy

Affords assurance that the cooperative corporation is duly formed and holds title to the land and building of which the unit is a part. Insures against outstanding maintenance charges and assessments, and any right of first refusal to purchase. Insures against the consequences of either an encroachment of the building or a violation of restrictive covenants. Provides a means to determine the value of the estate insured in the event of a loss.

Requirements: Provide any required waiver of a right of first refusal and consent to a mortgage. Confirm that there are no outstanding maintenance charges or assessments (Owner's and Loan Policies).

Premium: No Charge.

Development Rights (New York City)

Insures that all "parties-in-interest" under the Zoning Resolution are bounded by the Declaration of Zoning Lot Restrictions and that the Zoning Lot and Development Agreement ("ZLDA") validly transfers floor area development rights. It also insures an easement for light and air and a negative covenant not to build over and above the transferor's building if provided in the ZLDA.

Requirements: All "parties-in-interest" under the New York City Zoning Resolution must join in or consent to the development rights transfer. The Declaration of Restrictions, ZLDA, and any waivers are to be recorded. An easement of light and air and a negative covenant not to build must be granted by the ZLDA. Mortgages on the burdened parcel(s) are to be subordinated to the easement of light and air (Owner's and Loan Policies).

Premium: $25.00

Environmental Protection Lien (New York City)

Insures the priority of the lien of a mortgage property over recorded environmental protection liens not excepted in the policy or under state statutes not specifically excluded from coverage.

Requirements: None (Loan Policy).

Premium: $25.00

Environmental Protection Lien (New York)

Insures the priority of the lien of a mortgage property over recorded environmental protection liens not excepted in the policy or under state statutes not specifically excluded from coverage.

Requirements: None (Loan Policy).

Premium: $25.00

Fairway

Assures that the post-policy transfer of an interest in an insured partnership will not terminate policy coverage.

Requirements: None (Owner's Policy).

Premium: 20% of the unreduced owners premium.

Fannie Mae Balloon Mortgage

Insures against loss of priority due to the exercise of the Conditional Right to Refinance and the extension of the loan term.

Requirements: Standard Fannie Mae mortgage form (Loan Policy).

Premium: $25.00

First Loss

For losses exceeding ten percent of the Amount of Insurance, the Company will not require, prior to making a claim, either acceleration of the indebtedness or the exercise of remedies against other collateral.

Requirements: Insured in connection with multi-site transactions (Loan Policy).

Premium: 10% of the unreduced mortgage premium.

Industrial Development Agency or Similar Public Benefit Corporation Transfer to Insured Beneficial Owner

Affords the benefits of a policy issued to an IDA (or similar Public Benefit Corporation) as of its original date to its grantee provided that the grantee is the "Beneficial Owner" of the property conveyed to the IDA (or similar Public Benefit Corporation) or its nominee.

Requirements: None (Owner's Policy).

Premium: $25.00

Joint and Several Liability

Coinsuring title insurers jointly and severally assume up to a specified amount of loss.

Requirements: Coinsured transaction (Owner's and Loan Policies).

Premium: $1.00 per $1,000 of the joint and several coverage per coinsurer.

Junior Loan Policy Endorsement 1

Endorsement 1 updates a Residential Limited Coverage Junior Loan Policy/Short Form Residential Limited Coverage Junior Loan Policy to include recording information for the mortgage and provide limited gap coverage. Endorsement 2, intended to be issued with each Policy, affords variable rate and revolving credit insurance.

Requirements: Issued in conjunction with a Residential Limited Coverage Junior Loan Policy or Short Form Policy, which insures a second or other junior mortgage lien on a one-to-four family residence or condominium unit for an amount not to exceed $150,000.

Premium: $25.00 for Endorsement 1. No charge for Endorsement 2.

Junior Loan Policy Endorsement 2

Endorsement 1 updates a Residential Limited Coverage Junior Loan Policy/Short Form Residential Limited Coverage Junior Loan Policy to include recording information for the mortgage and provide limited gap coverage. Endorsement 2, intended to be issued with each Policy, affords variable rate and revolving credit insurance.

Requirements: Issued in conjunction with a Residential Limited Coverage Junior Loan Policy or Short Form Policy, which insures a second or other junior mortgage lien on a one-to-four family residence or condominium unit for an amount not to exceed $150,000.

Premium: $25.00 for Endorsement 1. No charge for Endorsement 2.

Land Same As Survey

Insures that the legal description of the insured land is the same as that delineated on a specified survey.

Requirements: An updated, certified survey (Owner's and Loan Policies).

Premium: $25.00

Last Dollar

Insured mortgage secures less than the full amount of a credit facility, payment made to reduce the amount of indebtedness are deemed applied for the first portion of the indebtedness that is in excess of the Amount of Insurance set forth in Schedule A of the policy.

Requirements: Mortgage must be reviewed to ensure that the secured amounts are to be repaid last and are not to be readvanced. (Loan Policy).

Premium: 10% of the unreduced mortgage premium.

Leasehold - Loan Policy

Amends the policy to define a leasehold estate and to provide a means to determine its value in the event of a loss.

Requirements: None (Owner's and Loan Policies).

Premium: None

Leasehold - Owners Policy

Amends the policy to define a leasehold estate and to provide a means to determine its value in the event of a loss.

Requirements: None (Owner's and Loan Policies).

Premium: None

Limited Liability Company (LLC) - Limited Liability Partnership (LLP)

Extends the benefits of the policy as of its original date to a LLC or LLP succeeding to the interest of the Insured by operation of law.

Requirements: Need proof of conversion to a LLC or a LLP (Owner's Policy)

Premium: $25.00

Manufactured Housing Unit

The term "land" as defined in the policy is amended to include a manufactured housing unit.

Requirements: Manufactured housing is to be located on the land at Date of Policy. (Owner's and Loan Policies).

Premium: $25.00

Market Value Policy Rider

Policy insures against loss or damage not exceeding the market value of the premises at the time of loss.

Requirements: The insured must be a natural person in occupancy of residential property containing no more than four dwelling units, including a residential condominium or cooperative unit. (Owner's Policy).

Premium: 10% of the Owner's policy premium

Market Value Rider (Owner's Extended Protection)

Policy insures against loss or damage not exceeding the market value of the premises at the time of loss.

Requirements: The insured must be a natural person in occupancy of residential property containing no more than four dwelling units, including a residential condominium or cooperative unit (Owner's Policy).

Premium: 10% of the ALTA Owner's policy premium or 5% of the policy premium for an Owner's Extended Protection Policy.

Mezzanine Financing

Provides for payment of a loss under an Owner's policy insuring a real property owning entity or lessee to be made to a Mezzanine Lender pledged partnership or membership interests in that entity. Affords the lender a form of "Fairway", "First Loss", and "Non-Imputation" endorsement coverage.

Requirements: Attach to the Owner's policy insuring the real property owner or lessee. The insured under the Owner's policy must countersign the endorsement.

Premium: 30% of the premium paid for the related Owner's policy.

Mortgage Tax

Insures against loss or damage sustained by the insured if all mortgage recording tax for the insured mortgage has not been paid.

Requirements: Mortgage and related documents must be reviewed (Loan Policy).

Premium: $25.00

Non-Imputation

Insures that the Company will not deny liability to the insured by reason of knowledge imputed to it through a partner, shareholder, or member by operation of law.

Requirements: Issued with an Owner's policy insuring the interest of a person or entity purchasing an interest in a corporation, partnership or other entity which owns real property. The amount of insurance may not be less than the value of the real property apportioned to the purchaser's percentage interest in the entity. Affidavits of the persons whose knowledge is in question and indemnities in support thereof are required (Owner's Policy).

Premium: 20% of the Owner's policy premium.

Option

Insures the validity and enforceability of an option to purchase.

Requirements: The option or memorandum of option must be recorded (Owner's policy).

Premium: The policy to be issued at regular fee policy premium rates must be in an amount not less than the down payment specified in the contract to an amount not exceeding the contract price and the cost of contemplated improvements and other development and construction costs.

The premium for the endorsement when issued with a policy without a TIRSA Leasehold or TIRSA Cooperative endorsement is computed at the regular Owner's policy rate. When the policy includes a TIRSA Leasehold or TIRSA Cooperative endorsement, the charge is 30% of the regular Owner's policy rate for the insurance not exceeding the amount of the Owner's policy. Continuation searches to downdate the policies are $200 each.

Partial Release of Mortgaged Premises

Affords assurances that a previously insured mortgage remains a valid and enforceable lien notwithstanding the release of part of the mortgaged premises and that the priority of the insured mortgage is not affected thereby.

Requirements: Review of Release and existing policy (Loan Policy) .

Premium: $150.00

Planned Unit Development

Affords assurances against outstanding common charges and assessments, rights of first refusal to purchase, and against the consequences of either an encroachment of a unit or a violation of restrictive covenants.

Requirements: Provide any required waiver of a right of first refusal and consent to mortgage. Confirm that there are no outstanding common charges or assessments. (Owner's and Loan Policies).

Premium: $25.00

Residential Mortgage

Affords assurances in connection with recorded covenants and restrictions, easements and rights of way.

Requirements: Mortgage must encumber one-to-four family residential property. An updated, certified survey is to be reviewed in conjunction with recorded easements and restrictive covenants (Loan Policy).

Premium: $25.00

Reverse Mortgage

Insures the priority and enforceability of the lien of a Reverse Mortgage as security for the payment of principal indebtedness, shared appreciation, and accrued but unpaid or compound interest. Provide a means to determine policy liability in the event of a loss.

Requirements: Compliance with Real Property Law Sections 280 or 280-a. Mortgage recording tax exemption affidavit must be provided (Loan Policy).

Premium: $25.00

Revolving Credit (RCE-1) - Residential Revolving Credit Endorsement

Assures that a credit line mortgage will not, except as to matters noted in each endorsement, lose lien priority as loan proceeds are advanced and readvanced, so long as the insured lender has no actual knowledge of the sale or transfer of the property and there has been no event of default.

RCE-1 and RCE-3 afford protection against mechanics liens. RCE-1, RCE-2 and RCE-3 insure against mortgage tax being imposed after the aggregate amount of advances exceeds the face amount of the mortgage.

Requirements: Compliance with Tax Law Section 253-b and Real Property Law Section 281. To issue RCE-1, and to comply with the Tax Law, the mortgage must encumber a one-to-six family, owner-occupied residential property. To issue RCE-3, the mortgage must be for a term of no more than three years and not be a building loan mortgage (Loan Policy).

Premium: 10% of the unreduced mortgage premium to issue RCE-1, RCE-2 or RCE-4. 20% of the unreduced mortgage premium to issue RCE-3

Revolving Credit (RCE-2) - Commercial Revolving Credit Endorsement for Commercial Credit Line Mortgages Which Secure a Maximum Principal Indebtedness of Less Than $3,000,000

Assures that a credit line mortgage will not, except as to matters noted in each endorsement, lose lien priority as loan proceeds are advanced and readvanced, so long as the insured lender has no actual knowledge of the sale or transfer of the property and there has been no event of default.

RCE-1 and RCE-3 afford protection against mechanics liens. RCE-1, RCE-2 and RCE-3 insure against mortgage tax being imposed after the aggregate amount of advances exceeds the face amount of the mortgage.

Requirements: Compliance with Tax Law Section 253-b and Real Property Law Section 281. To issue RCE-1, and to comply with the Tax Law, the mortgage must encumber a one-to-six family, owner-occupied residential property. To issue RCE-3, the mortgage must be for a term of no more than three years and not be a building loan mortgage (Loan Policy).

Premium: 10% of the unreduced mortgage premium to issue RCE-1, RCE-2 or RCE-4. 20% of the unreduced mortgage premium to issue RCE-3

Revolving Credit (RCE-3) - Commercial Revolving Credit Endorsement (Limited Term Special Coverage) for Commercial Credit Line Mortgages Which Secure a Maximum Principal Indebtedness of Less than $3,000,000

Assures that a credit line mortgage will not, except as to matters noted in each endorsement, lose lien priority as loan proceeds are advanced and readvanced, so long as the insured lender has no actual knowledge of the sale or transfer of the property and there has been no event of default.

RCE-1 and RCE-3 afford protection against mechanics liens. RCE-1, RCE-2 and RCE-3 insure against mortgage tax being imposed after the aggregate amount of advances exceeds the face amount of the mortgage.

Requirements: Compliance with Tax Law Section 253-b and Real Property Law Section 281. To issue RCE-1, and to comply with the Tax Law, the mortgage must encumber a one-to-six family, owner-occupied residential property. To issue RCE-3, the mortgage must be for a term of no more than three years and not be a building loan mortgage (Loan Policy).

Premium: 10% of the unreduced mortgage premium to issue RCE-1, RCE-2 or RCE-4. 20% of the unreduced mortgage premium to issue RCE-3

Revolving Credit (RCE-4) - Commercial Revolving Credit Endorsement for Commercial Credit Line Mortgages Which Secure a Maximum Principal Indebtedness of $3,000,000 or More

Assures that a credit line mortgage will not, except as to matters noted in each endorsement, lose lien priority as loan proceeds are advanced and readvanced, so long as the insured lender has no actual knowledge of the sale or transfer of the property and there has been no event of default.

RCE-1 and RCE-3 afford protection against mechanics liens. RCE-1, RCE-2 and RCE-3 insure against mortgage tax being imposed after the aggregate amount of advances exceeds the face amount of the mortgage.

Requirements: Compliance with Tax Law Section 253-b and Real Property Law Section 281. To issue RCE-1, and to comply with the Tax Law, the mortgage must encumber a one-to-six family, owner-occupied residential property. To issue RCE-3, the mortgage must be for a term of no more than three years and not be a building loan mortgage (Loan Policy).

Premium: 10% of the unreduced mortgage premium to issue RCE-1, RCE-2 or RCE-4. 20% of the unreduced mortgage premium to issue RCE-3

Standard New York - Loan Policy

Affords coverage against unfiled mechanics liens and against liens and encumbrances filed or recorded after Date of Policy and prior to recording of the insured instruments. ("Gap" coverage).

Requirements: The insured deed or mortgage must contain a Section 13 Lien Law clause (Owner's and Loan Policies).

Premium: Appended to the ALTA policy without charge

Standard New York - Owners Policy

Affords coverage against unfiled mechanics liens and against liens and encumbrances filed or recorded after Date of Policy and prior to recording of the insured instruments. ("Gap" coverage).

Requirements: The insured deed or mortgage must contain a Section 13 Lien Law clause (Owner's and Loan Policies).

Premium: Appended to the ALTA policy without charge

Successor in Ownership of Indebtedness

Affords the benefits of the policy as of its original date to the purported assignee of an insured mortgage.

Requirements: None (Loan Policy).

Premium: $25.00

Survey - Loan Policy - One To Four Family

Insures against loss or damage by any violation, variation, encroachment or adverse circumstance that would have been disclosed by an accurate survey.

Requirements: Land must be used as a one-to-four family residence. A survey affidavit is required (Loan Policy).

Premium: 10% of the unreduced mortgage premium

Swap

Insures the validity, enforceability and priority of additional interest under an Interest Rate Exchange Agreement secured by the insured mortgage.

Requirements: The mortgage must secure amounts under an Interest Rate Exchange Agreement defined as "additional interest" (Loan Policy).

Premium: The amount of additional interest coverage, as set forth in the endorsement, is in addition to the policy amount and is charged at the regular loan policy rate per thousand.

Tax Parcel (More Than One Tax Lot)

Insures against loss or damage is the land insured is not assessed for real estate tax purposes as a separate tax lot or as separate tax lots.

Requirements: Review of municipality's tax map (Loan Policy) .

Premium: $25.00

Tax Parcel (Single Tax Lot)

Insures against loss or damage is the land insured is not assessed for real estate tax purposes as a separate tax lot or as separate tax lots.

Requirements: Review of municipality's tax map (Loan Policy) .

Premium: $25.00

Variable Rate Mortgage - Alta Endorsement 6

ALTA Endorsement 6 insures against loss of priority by reason of changes in the rate of interest on the principal indebtedness secured by the insured mortgage. The Fixed Rate Conversion endorsement also insures against loss of priority by reason of provisions in the mortgage which permit the borrower to convert to a fixed rate. The Negative Amortization endorsement also insures against loss of priority by reason of the capitalization of interest.

Requirements: The mortgage must provide for changes in the interest rate. For the Negative Amortization endorsement to be issued, mortgage recording tax is to be paid on a maximum stated principal amount of indebtedness including the amount of interest that may be capitalized, and a mortgage recording tax affidavit is required (Loan Policies).

Premium: Endorsement is $25.00. For negative amortization, the policy premium is computed on an amount inclusive of secured, capitalized interest.

Variable Rate Mortgage - Fixed Rate Conversion

ALTA Endorsement 6 insures against loss of priority by reason of changes in the rate of interest on the principal indebtedness secured by the insured mortgage. The Fixed Rate Conversion endorsement also insures against loss of priority by reason of provisions in the mortgage which permit the borrower to convert to a fixed rate. The Negative Amortization endorsement also insures against loss of priority by reason of the capitalization of interest.

Requirements: The mortgage must provide for changes in the interest rate. For the Negative Amortization endorsement to be issued, mortgage recording tax is to be paid on a maximum stated principal amount of indebtedness including the amount of interest that may be capitalized, and a mortgage recording tax affidavit is required (Loan Policies).

Premium: Endorsement is $25.00. For negative amortization, the policy premium is computed on an amount inclusive of secured, capitalized interest.

Variable Rate Mortgage - Negative Amortization

ALTA Endorsement 6 insures against loss of priority by reason of changes in the rate of interest on the principal indebtedness secured by the insured mortgage. The Fixed Rate Conversion endorsement also insures against loss of priority by reason of provisions in the mortgage which permit the borrower to convert to a fixed rate. The Negative Amortization endorsement also insures against loss of priority by reason of the capitalization of interest.

Requirements: The mortgage must provide for changes in the interest rate. For the Negative Amortization endorsement to be issued, mortgage recording tax is to be paid on a maximum stated principal amount of indebtedness including the amount of interest that may be capitalized, and a mortgage recording tax affidavit is required (Loan Policies).

Premium: Endorsement is $25.00. For negative amortization, the policy premium is computed on an amount inclusive of secured, capitalized interest.

Waiver of Arbitration

Deletes the provision of the policy enabling either the Company or the Insured to elect arbitration when the amount of insurance is $1,000,000 or less. Under the Policy without endorsement, arbitration must be agreed to by the Company and the Insured when the amount of insurance exceeds $1,000,000 (Owner's and Loan Policies).

Requirements:  None

Premium: $25.00