CLTA Restrictions, Encroachments & Minerals - Loan Policy (02-06-15) 100.1

ENDORSEMENT

Attached to Policy No.

Issued By

STEWART TITLE GUARANTY COMPANY 

The insurance provided by this endorsement is subject to the Exclusions from Coverage, the Exceptions from Coverage contained in Schedule B, and the Conditions and Stipulations in the policy.

The Company hereby insures the owner of the indebtedness secured by the mortgage referred to in paragraph ______  of Part II of Schedule B against loss or damage which the insured shall sustain by reason of:

1. The existence of any of the following:

(a) Covenants, conditions or restrictions under which the lien of the insured mortgage can be cut off, subordinated or otherwise impaired;

(b) Present violations on the land of any enforceable covenants, conditions or restrictions;

(c) Except as shown in Part II of Schedule B, any encroachments of buildings, structures or improvements located on the land onto adjoining lands, or any encroachments onto the land of buildings, structures or improvements located on adjoining lands.

2. (a) Any future violations on the land of any covenants, conditions or restrictions occurring prior to acquisition of title to the estate or interest referred to in Schedule A by the insured, provided such violations result in impairment or loss of the lien of the insured mortgage or result in impairment or loss of the title to  the estate or interest referred to in Schedule A if the insured shall acquire such title in satisfaction of the indebtedness secured by the insured mortgage;

(b) Unmarketability of the title to the estate or interest referred to in Schedule A by reason of any violations on the land, occurring prior to acquisition of title to the estate or interest referred to in Schedule A by the insured, of any covenants, conditions or restrictions.

3. Damage to existing improvements, including lawns, shrubbery or trees:

(a) Which are located or encroach upon that portion of the land subject to any easement shown in Part II of Schedule B, which damage results from the exercise of the right to use or maintain such easement for the purposes for which the same was granted or reserved;

(b) Resulting from the exercise of any right to use the surface of the land for the extraction or development of the minerals excepted from the description of the land or shown as a reservation in Part II of Schedule B.

4. Any final court order or judgment requiring removal from any land adjoining the land of any encroachment shown in Part II of Schedule B.

5. This endorsement does not insure against loss or damage (and the Company will not pay costs, attorneys' fees, or expenses) resulting from: 

(a) contamination, explosion, fire, vibration, fracturing, earthquake or subsidence; 

(b) negligence by a person or an Entity exercising a right to extract or develop minerals or other subsurface substances ; or, 

(c) common interest owner association liens that pursuant to state statutes are given  priority, in whole or in part, over previously recorded liens.

    As used in this endorsement, the words "covenants, conditions or restrictions" do not refer to or include the terms, covenants, conditions or restrictions contained in any lease.

    As used in this endorsement, the words "covenants, conditions or restrictions" 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 Date of Policy and is not excepted in Schedule B.

    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.

STEWART TITLE GUARANTY COMPANY 

No guidelines are available for this form at this time.