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Condominiums

To insure on a condominium, you must verify that the Declaration complies with state law. The Company requires a review of the Declaration to verify that the Condominium Endorsement ALTA Form 4 (or 4.1 in those states where the assessment lien has priority for some assessments) can be issued. You must carefully consider expandable condominium regimes in accordance with the Company’s guidelines. Always be aware of mechanic’s lien issues on new condominium projects recently or not yet complete.

Exception

CONX01 ALTA

Declaration Exception (with Option or First Ref

Terms, provisions, option, right of first refusal, covenants, conditions, restrictions, easements, charges, assessments, and liens provided by applicable condominium law or the Condominium Declaration and Bylaws recorded ___________, but omitting any covenant, condition or restriction, if any, based on race, color, religion, sex, handicap, familial status, or national origin unless and only to the extent that the covenant, condition or restriction (a) is exempt under Title 42 of the United States Code, or (b) relates to handicap, but does not discriminate against handicapped persons.
Comment: Except to the terms of the Declaration. This exception also expressly refers to a possible option or right of first refusal.

See Underwriting Manual

CONX02 ALTA

Declaration Exception (with Option or First Ref

Terms, provisions, option, right of first refusal, covenants, conditions, restrictions, easements, charges, assessments, and liens provided by applicable condominium law or the Condominium Declaration and Bylaws recorded ______________, but omitting any covenant, condition or restriction, if any, based on race, color, condition or restriction (a) is exempt under Title 42 of the United Sates Code, or (b) relates to handicap, but does not discriminate against handicapped persons. The Condominium Declaration and Bylaws also provide faith and for value.
Comment: This language may be used if the Declaration and state law provide that violations will not defeat good faith mortgages. The Condominium Endorsements (ALTA 4 and 4.1) also provide this coverage.

See Underwriting Manual

CONX03 ALTA

Declaration Exception (with Option or First Ref

Terms, provisions, option right of first refusal, covenants, conditions, restrictions, easements, charges, assessments, and liens provided by applicable condominium law or the Condominium Declaration and Bylaws recorded _____________, but omitting any covenant, condition or restriction, if any, based on race, color. Religion, sex, handicap, familial status, or national. Origin unless and only to the extent that the convenant, condition or restriction (a) is exempt under Title 42 of the United States Code, or (b) relates to handicap, but does not discriminate against handicapped persons. The Condominium Declaration and Bylaws also provide that any violation thereof shall not defeat or render invalid the lien of the Insured Mortgage.
Comment: This exception is appropriate only for the Loan Policy and only if the Declaration and state law provide that violations will not defeat the insured mortgage.
See

See Underwriting Manual

CONX04 ALTA

Declaration Exception (No Option or First Refus

Terms, provisions, covenants, conditions, restrictions, easements, charges, assessments, and liens provided by applicable condominium law or the Condominium Declaration and Bylaws recorded __________________, but omitting any covenant, condition or restriction, if any, based on race, color, religion, sex, handicap, familial status, or national origin unless and only to the extent that the covenant, condition or restriction (a) is exempt under Title 42 the United States Code, or (b) relates to handicap, but does not discriminate against handicapped persons.
Comment: Except to the terms of the Declaration.

See Underwriting Manual

CONX05 ALTA

Declaration Exception (No Option or First Refus

Terms, provisions, covenants, conditions, restrictions, easements, charges, assessments, and liens provided by applicable condominium law or the Condominium Declaration and Bylaws recorded _____________, but omitting any covenant, condition or restriction, if any, based on race, color, religion, sex, handicap, familial status, or national origin unless and only to the extent that the covenant, condition or restriction (a) is exempt under Title 42 of the United States Code, or (b) relates to handicap, but does not discriminate against handicapped persons. The Condominium Declaration and Bylaws also provide that any violation thereof shall not defeat or render invalid the lien of a mortgage or deed of trust made in good faith and for value.
Comment: This language may be added to the Declaration exception if the Declaration and state law provide that violations will not defeat good faith mortgages. The Condominium Endorsements (ALTA 4 and 4.1) also provide this coverage.

See Underwriting Manual

CONX06 ALTA

Declaration Exception (No Option of First Refus

Terms, provisions, covenants, conditions, restrictions, easements, charges, assessments, and liens provided by applicable condominium law or the Condominium Declaration and Bylaws recorded ______________, but omitting any covenant, condition or restriction, if any, based on race, color, religion, sex, handicap, familial status, or national origin unless and only to the extent that the covenant, condition or restriction (a) is exempt under Title 42 the United States Code, or (b) relates to handicap, but does not discriminate against handicapped persons. The Condominium Declaration and Bylaws also provide that any violation thereof shall not defeat or render invalid the lien of the Insured Mortgage.
Comment: This exception is appropriate only for the Loan Policy and only if the Declaration and state law provide that violations will not defeat the insured mortgage.
See

See Underwriting Manual

CONX07 ALTA

Violation of Separate Declaration Exception Doe

The Condominium Declaration and Bylaws recorded _____________ also provide that any violation thereof shall not defeat or render invalid the lien of a mortgage or deed of trust made in good faith and for value..
Comment: This language may be used if the Declaration and state law provide that violations will not defeat good faith mortgages. The Condominium Endorsements (ALTA 4 and 4.1) also provide this coverage.

See Underwriting Manual

CONX08 ALTA

Violation of Separate Declaration Exception Doe

The Condominium Declaration and Bylaws recorded ____________ also provide that any violation thereof shall not defeat or render invalid the lien of the Insured Mortgage.
Comment: This exception is appropriate only for the Loan Policy and only if the Declaration and state law provide that violations will not defeat the insured mortgage. 

 

See Underwriting Manual