EXT

Extended Coverage

If the policy contains an insuring provision and standard (regional or state) exceptions (such as parties in possession, unrecorded easements, survey matters, mechanic's liens, and taxes and assessments not shown as existing liens) are deleted, the insured is given extended coverage. The requirements to delete these exceptions are detailed.

Requirement

EXTR01 STG

Parties in Possession (1-4 Family)

Provided the land is one-to-four family residential property, exception to "Rights of parties in possession" shown in this Commitment may be deleted upon this Company being furnished, prior to closing, with a satisfactory affidavit executed by the owner of the land identifying the land and stating that no one is in possession of the land other than said owner and the tenants of said owner. If there are tenants, their names and form of leases must also be indicated. The Company may except in the Policy to any such tenancy or other matter that is a product of this requirement.
Comment: You may rely on a credible seller's affidavit in order to delete this exception on 1-4 family property. Do not insure without the Company's approval if a mortgagor remains in possession after foreclosure. Except to known matters such as tenants.

EXTR02 STG

Parties in Possession (Commercial or Agricultur

Provided the land is not one-to-four family residential property, exception to “Rights of parties in possession” shown in this Commitment may be deleted upon this Company being furnished, prior to closing, with a satisfactory affidavit executed by the owner of the land identifying the land and stating that no one is in possession of the land other than said owner and the tenants of said owner. If there are tenants, their names and form of leases must also be indicated. The Company may except in the Policy to any such tenancy or other matter that is a product of this requirement.
Comment: Require an affidavit and inspection in order to delete this exception on commercial or agricultural land. If the land is a shopping center, the Company will rely upon a credible affidavit listing all tenants. Do not insure without underwriter approval if a mortgagor remains in possession after foreclosure. Except to known matters such as tenants.

EXTR04 STG

Survey Matters (Usual Survey Exception)

Exception No. 2 of this Commitment may be amended to delete all save and except “shortages in area” upon review and examination by this Company, prior to closing, of a satisfactory current survey of the land duly certified by a satisfactory registered land surveyor. The Company may except in the Policy to any item that is a product of this requirement.
Comment: The Company requires an acceptable survey to delete the survey exception, except on Mortgagee Policies covering condominiums. The survey must be current (recent date for sales or confirmed by credible affidavit or inspection for refinances). All encroachments, conflicts and evident easements and covenant violations must be excepted.

EXTR06 STG

Survey Matters

Exception to Easements or claims of easements not shown by the of this Commitment may be deleted upon review and examination by this Company, prior to closing, of a satisfactory current Certificate of Survey of the land duly certified by a satisfactory registered land surveyor. The Company may except in the Policy to any item that is a product of this requirement.
Comment: The Company requires an acceptable survey in order to delete the unrecorded easement exception. The survey must be current (recent date of sales or confirmed by credible affidavit or inspection for refinances). All encroachments, conflicts and evident easements and covenant violations must be excepted.

EXTR08 STG

Taxes and Assessments

Exception No. 3(e) (“Standby fees, taxes and assessments by any taxing authority for the year 19___ and subsequent years and subsequent taxes and assessments by any taxing authority for prior years due to change in land usage or ownership”) of this Commitment may be amended in Mortgagee Policies and in Mortgagee Title Policy Binder on Interim Construction Binders if at the time of closing, the Company can ascertain that all taxes and assessments are paid, that there are no pending proceedings to create or confirm a special assessment on the land and that there is no work that may result in an assessment lien and upon payment of the premium prescribed in Rate Rule 19.
Comment: In order to delete this exception, the Company requires proof that there are no possible rollback or supplemental taxes due to failure to assess the land or improvements or due to change in use.

Exception

EXTX01 ALTA

Parties in Possession

Rights of parties in possession.
Comment: Use this exception if the proposed owner - insured executes a Waiver of Inspection. Otherwise, by affidavit or inspection determine the names of those persons in possession, if any, and except to their rights. If a mortgagor remains in possession after foreclosure, consult with the Company.

EXTX02 ALTA

Easements

Easements or claims of easements not recorded in the public records.
Comment: Use this exception unless you determine by a survey that there are no applicable unrecorded easements. This exception is particularly relevant on agricultural or timberland.