Guideline: ALTA Short Form Expanded Coverage Residential Loan Policy Assessments Priority (04-02-15)

Explanation:

This policy is the Short Form version of the ALTA Expanded Coverage Residential Loan Policy – Assessments Priority (04-02-15). It incorporates the insuring provisions, exclusions and conditions of that ALTA policy.  This policy does not expressly restate the included endorsements, since those endorsements are automatically incorporated in the ALTA Expanded Coverage Residential Loan Policy – Assessments Priority (04-02-15), and are therefore automatically incorporated into the ALTA Short Form Expanded Coverage Residential Loan Policy – Assessments Priority (04-02-15).

Schedule B of this policy contains pre-printed exceptions for covenants, conditions and restrictions appearing in the Public Records, easements or servitudes appearing in the Public Records, and any lease, grant, exception or reservation of minerals or mineral rights appearing in the Public Records.  Parentheticals following these exceptions state that the pre-printed exceptions do not modify or limited the coverage provided in the applicable Covered Risk of the long form ALTA Expanded Coverage Residential Loan Policy (04-02-15).  However, the policy does not otherwise contain affirmative insurance for the exceptions in Schedule B because the affirmative insurance already appears in the ALTA Expanded Coverage Residential Loan Policy Covered Risks or in the incorporated endorsements.   This policy also provides gap coverage because a Covered Risk of the ALTA Expanded Coverage Residential Loan Policy – Assessments Priority (04-02-15) contains such coverage and is incorporated.

Underwriting Requirements:

Underwriting Requirements:

1.    Issue the ALTA Short Form Expanded Coverage Residential Loan Policy – Assessments Priority (04-02-15) only if you comply with our requirements for issuance of the ALTA Expanded Coverage Residential Loan Policy – Assessments Priority (04-02-15). 

2.    You do not need to specify any of the exceptions covered by the pre-printed exceptions in Schedule B.  You do not need to add an Addendum unless you have special exceptions for matters not otherwise excepted.

3.    Perform a general index search for the time period of the statute of limitations on judgments in your jurisdiction, and for the time period of the limitations on Federal judgments and Federal tax liens. Check taxes, assessments of all types, and other governmental charges. Be satisfied that there are no unpaid bills for improvements.

4.    Schedule A should show the Street Address of the Land.  You may use the address shown on the mortgage or other reasonable evidence, such as tax information.

5.    Schedule A should show the Loan Number.

6.    You may add "successors and assigns" language if requested by the lender.  However, this addition is unnecessary due to the incorporated definition of “Insured.”

7.    Insert the date of settlement as the Date of Policy.

8.    Because this policy insures that condominium and homeowner’s association liens for future assessments are subordinate to the Insured Mortgage, you must (a) review the condominium declaration or restrictive covenants to verify that the condominium declaration or restrictive covenants do not state that the property owner’s or homeowner's assessment liens for future assessments are superior to the Insured Mortgage, and (b) issue only in the states where the law provides that the lien for future assessments is subordinate to a mortgage or where the declaration or restrictions subordinate the assessment lien to the mortgage.

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.