Guideline: ALTA Endorsement 35.3-06 (Minerals and Other Subsurface Substances - Land Under Development) - Adopted (04/02/12)

Explanation:

Provides the owner or lender with coverage against loss or damage to the existing or future building, surface structure, paved road, walkway, parking area, driveway or curb resulting from the use of the surface of the land for the extraction or development of minerals excepted from the legal description or excepted in Schedule B of the policy.

Underwriting Requirements:

In order to provide the coverage comply with one of the following requirements:

(1) verify that there are no outstanding minerals or other subsurface substances (other than royalties) or that surface rights have been waived; or

(2) on single family residences within platted subdivisions, you may provide the coverage even if there are outstanding minerals or other subsurface substances unless you know that the subdivision has actual mineral or other subsurface substance development; or

(3) on apartment complexes, you may provide the coverage even if there are outstanding minerals or other subsurface substances unless you know that the immediate area has actual mineral or other subsurface substance development; or

(4) on office buildings and shopping centers, you may provide the coverage even if there are outstanding minerals or other subsurface substances unless you know that the immediate area has actual mineral or other subsurface substance development; or

(5) secure underwriter approval. Factors of relevance on other land include percent of minerals or other subsurface substances outstanding, how long ago the minerals were reserved, zoning prohibitions, waivers of surface rights, development in the area, and any applicable Accommodation Doctrine or Surface Damage Law. 

Indicate in Paragraph 4.c. any mineral interest you intend to exclude from coverage.  If there is none, then indicate “None” in the blank.

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.