NM Leasehold Owner's Endorsement Guideline 20
Explanation:The Leasehold Owner's Endorsement (NM 20, ALTA 13) may be attached to an Owner's Policy (NM 1) to convert the standard NM Owner's Policy into a Leasehold Owner's Policy.
We require the following:
1. A Leasehold Owner's Endorsement (NM 20) shall be attached to a standard Owner's Policy (NM 1) insuring a leasehold interest.
2. Leasehold Owner's Policies shall be issued to insure a leasehold owner's estate and in the amount, at the option of the Insured, of either (1) the total amount of the rentals payable under the lease contract, or (2) of the land and any existing improvements, or (3) the value of the land and any existing improvements and the cost of the improvements immediately contemplated to be erected thereupon. In the latter case, the leasehold owner's policy must contain a Pending Improvement clause or Pending Improvements Endorsement (NM 23).
3. Unless otherwise specifically stated, a Leasehold Owner's Policy shall contain the same standard exceptions, be subject to the same premium rates and be subject to deletion of the same standard exceptions in the same manner as a standard Owner's Policy.
4. A Leasehold Owner's Policy may be converted back to a standard Owner's Policy by the issuance of an Owner's Leasehold Conversion Endorsement (NM 31).
5. No additional premium shall be charged for the Leasehold Owner's Endorsement.
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