CLTA Priority of Lien Over Assessments Endorsement Guideline 100.13

Explanation:

Provides the ALTA lender with insurance that the lien of any homeowners association maintenance or upkeep assessments levied under the CC&Rs shown in Schedule B, is and will be, subject and subordinate to the insured deed of trust or mortgage.

Underwriting Requirements:

(1) This endorsement cannot be issued if there is a provision in the CC&Rs stating that the assessments have priority over "all other liens and encumbrances".
(2) The CC&Rs must be thoroughly reviewed.
(3) Title personnel must determine that the restrictions were either recorded subsequent to the recording of the insured deed of trust or mortgage and the lender has not subordinated to the restrictions or that the restrictions were recorded prior to the insured deed of trust or mortgage but the restrictions provide that a notice of lien will be filed of record if such a lien exists.

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 Lien Over Assessments Endorsement 100.13