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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 No.2(a) ("Rights or claims of parties in possession not shown by the public records") of 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 No.2(a) (“Rights or claims of parties in possession not shown by the public records”) of this commitment may be deleted if the Company makes a satisfactory inspection for its sole benefit and if the Company is 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.

EXTR03 STG

Easements and Survey Matters (Usual Survey Exce

Exception No. 2(b) (“Easements or claims of easements not shown by the public records”) and Exception No. 2(c) (“Encroachments, overlaps, boundary line disputes, or other matters which would be disclosed by an accurate survey and inspection of the land”) 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, and stating that it was made either in accordance with the “Minimum Standard Detail National Requirements for ALTA/ACSM Land Title Surveys as adopted by the American Land Title Association and the American Congress on Surveying & Mapping” or in accordance with the State Land and Survey Standards. 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 easement and survey exceptions, except on Loan Policies covering 1-4 family residential property in well established subdivisions (on Master or Short Form Policy or refinance). The survey must be current (recent date or confirmed by credible affidavit or inspection). All encroachments, conflicts and evident easements and covenant violations must be excepted.

EXTR05 STG

Easements and Survey Matters (Preferred Survey

Exception No. 2(b) (“Easements or claims of easements not shown by the public records”) and Exception No. 2(c) (“Any discrepancies, conflicts or shortages in area or boundary lines or any encroachments or protrusions or any overlapping of improvements”) 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, and stating that it was made either in accordance with the “Minimum Standard Detail National Requirements for ALTA/ACSM Land Title Surveys as adopted by the American Land Title Association and the American Congress on Surveying & Mapping” or in accordance with the State Land and Survey Standards. 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 easement and survey exception. The Company does not require a survey on Loan Policies covering 1-4 family residential property in well established subdivisions (on Master or Short Form Policy or refinance) unless state regulation requires a survey. The survey must be current (recent date or confirmed by credible affidavit or inspection unless regulation requires a recent survey). All encroachments, conflicts and evident easements and covenant violations must be excepted.

EXTR07 STG

Mechanic’s Liens

Exception No. 2(d) (“Any lien, or right of a lien, for services, labor, or material heretofore or hereafter furnished, imposed by law and not shown by the public records”) of this commitment may be deleted IF the Company receives satisfactory final Affidavits, verification that all funds have been disbursed and all bills paid, list of all materialmen, subcontractors, and contractors, indemnities and audited financial statements if appropriate, proof of final payment and waiver of liens, and determination that any new loan is not a construction loan, if applicable. The Company may, at its option, require an inspection of the land. At the time the Company is furnished these items, the Company may make additional requirements or exceptions.
Comment: Determine that no work on the project (which may include adjacent land or units owned by the seller) has been completed within the lien perfection period or require detailed information proving that all bills are paid, including lists of all contractors, suppliers, and subcontractors. Confirm these persons are paid by calls and waivers. If any doubt exists as to whether work was complete, require an inspection. To insure a new construction loan, you must be familiar with state procedures: in some states, recording is sufficient; in some states, you must require an inspection to verify that no work was begun; and, in some states, you also must insert satisfactory pending disbursement clauses and indemnity approval.

EXTR08 STG

Taxes and Assessments

Exception No. 2(e) (“Taxes or special assessments which are not shown as existing liens by the public records”) of this commitment may be deleted 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.
Comment: In order to delete this exception, the Company requires proof that there is no work or proceeding that may result in assessments, and 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 or claims of parties in possession not recorded in the public records.
Comment: Use this exception unless you determine the names of those persons in possession, if any, and you 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.

EXTX03 ALTA

Survey Exception - Owner’s Policy

Rights or claims of parties in possession and easements or claims of easements not shown by the public records, boundary line disputes overlaps, encroachments, and any matters not of record which would be disclosed by an accurate survey and inspection of the land..
Comment: Use this exception unless you are furnished an acceptable survey or unless you issue the Short Form Policy, Master Loan Policy, or other Loan Policy (on a refinance) on 1-4 family residential property in a well established subdivision. If you are aware of specific survey issues, the Company generally prefers to note them.

EXTX04 ALTA

Survey Exception - Mortgagee Policy

Any state of facts as would be disclosed by an accurate survey and inspection of the premises.
Comment: Use this exception unless you are furnished an acceptable survey or unless you issue the Short Form Policy, Master Loan Policy, or other Loan Policy (on a refinance) on 1-4 family residential property in a well established subdivision. If you are aware of specific survey issues, the Company generally prefers to note them.

EXTX05 ALTA

Mechanic’s Liens

Any lien, or right to a lien, for services, labor, or material heretofore or hereafter furnished, imposed by law and not shown by the public records.
Comment: Use this exception if you do not know whether recent work has occurred, or if you do not know whether the lien to be insured secures a construction loan, unless the Company’s requirements are met. Use this exception if you know that there was recent work or that the lien involves construction, unless the Company’s requirements are met.

EXTX06 ALTA

Taxes and Assessments

Taxes or special assessments which are not shown as existing liens by the public records.
Comment: Use this exception unless the Company’s requirements are met: you must determine there is no work or proceeding that would result in assessments and no possible rollback or supplemental taxes.

EXTX07 STG

Survey Exception (Usual Survey Exception)

Encroachments, overlaps, boundary line disputes, or other matters which would be disclosed by an accurate survey and inspection of the land.
Comment: Use this exception unless you are furnished an acceptable survey or unless you issue the Short Form Policy, Master Loan Policy, or other Loan Policy (on a refinance) on 1-4 family residential property in a well established subdivision. If you are aware of specific survey issues, the Company generally prefers to note them.

EXTX08 STG

Preferred Survey Exception

Any discrepancies, conflicts or shortages in area or boundary lines, or any encroachments or protrusions, or any overlapping of the improvements.
Comment: This is the preferred survey exception. Use this exception unless you are furnished an acceptable survey or unless you issue the Short Form Policy, Master Loan Policy, or other Loan Policy (on a refinance) on 1-4 family residential property in a well established subdivision. If you are aware of specific survey issues, the Company generally prefers to note them.