NM Owner's Leasehold Conversion Endorsement Guideline 31
Explanation:An Owner's Policy with a Leasehold Owner's Endorsement (NM 20) may be converted to a standard Owner's Policy by the issuance of an Owner's Leasehold Conversion Endorsement (NM 31).
Underwriting Requirements:We require the following:
1. An Owner's Policy with a Leasehold Owner's Endorsement (NM 20) may be converted to a standard Owner's Policy if the owner of the leasehold interest acquires the fee title interest within three (3) years of the effective date of the original Owner's Policy with a Leasehold Owner's Endorsement (NM 20).
2. In addition to the Owner's Leasehold Conversion Endorsement (NM 31), a Multipurpose Endorsement (NM 11) shall be issued reflecting any changes to the estate insured and adding or deleting exceptions, and otherwise modifying the policy to accurately reflect the current condition of title of the estate insured as a down date endorsement.
3. The endorsement premium for such conversion shall be 50% of Basic Premium Rate up to face amount of leasehold owner's policy plus an additional amount from applicable brackets of the Basic Premium Rate.
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):