CLTA Mechanic's Lien Coverage Endorsement Guideline 101
Provides insurance to the CLTA lender against loss by reason of the establishment of priority of mechanic's liens over the lien of the insured deed of trust or mortgage which is based upon the claim that materials were delivered or work begun prior to the recording of the deed of trust or mortgage.
Underwriting Requirements:Underwriting Requirements:
(1) Inspection of the property is required. This inspection must be made as close as possible to the time of the recording of the deed of trust or mortgage in order to confirm that work has not commenced and that no materials have been delivered to the site.
(2) The CLTA 101 Endorsement form is similar but not identical to the ALTA loan policy coverage on mechanic's liens.
(3) This guideline is for California property. The appropriate Stewart Title Guaranty underwriting personnel must be contacted prior to issuance in other states.
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):