CLTA Priority of Lease Endorsement Guideline 119.3

Explanation:

This endorsement covers liability for assertion of priority arising from the circuitry of lien situations under an ALTA loan policy.

Underwriting Requirements:

(1) In the event priority as between all the liens of record is clearly established; the use of this endorsement is unnecessary.
(2) The purpose behind this endorsement is not clear. However, it is apparently intended to protect the title insurer against disputes between a lien clearly subordinated to the insured deed of trust and an unsubordinated intervening lien neither of which is insured.

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):

CLTA Priority of Lease (06-03-05) 119.3