NM Foundation Endorsement Guidelines 61

Explanation:

The Foundation Endorsement (NM 61) insures the lender that the foundations of structures under construction are within the boundaries of the land, that their location does not encroach onto easements, and that their location does not violate particular Covenants, Conditions, or Restrictions. This endorsement is substantially the same as the California Land Title Association (CLTA) Endorsement 102.5.

Underwriting Requirements:

(1) You must review a survey showing the location of the foundation entirely on the land. NMAC 13.14.8.24. The foundation must not encroach onto adjoining land.

(2) If the survey shows that the location of the foundation violates existing restrictions, such as an encroachment into setback (building) lines, you must except to the encroachment in paragraph 2 of the endorsement. If you are requested to affirmatively insure against the removal of the encroachment pursuant to NMAC 13.14.18.11, please call our underwriting personnel. If the survey reflects no violation, state "none" after paragraph 2.

(3) If the survey shows that the foundation encroaches over an easement, you must except to the encroachment in paragraph 3 of the endorsement. If you are requested to affirmatively insure against the removal of the encroachment pursuant to NMAC 13.14.18.11, please call our underwriting personnel. If the survey reflects no encroachment, state "none" after paragraph 3.

(4) You must date the endorsement the date of the survey.

(5) You must charge (1) $25 for the endorsement on one-to-four family residential policies, and (2) $50 for the endorsement on commercial policies. NMAC 13.14.10.44.

(6) You may issue the Foundation Endorsement (NM 61) with a Loan Policy or Construction Loan Policy, covering any type of property. You may not issue this endorsement with an Owner's Policy.

The underwriting guidelines contained herein have been provided for general reference. The facts, circumstances, and location of the subject property should be considered when determining the issuance of the requested form or endorsement. Please note that all of the forms and endorsements included in this system may not be available in all states. Accordingly, please contact the appropriate Stewart Title Guaranty Company underwriting personnel in order to determine availability.

Compliance with the underwriting guidelines contained herein in no way obligates Stewart Title Guaranty Company to issue any form or endorsement.

This guideline applies to the following form(s):

None