OPT

Options

You must consult with the Company before expressly insuring an option (by describing in Schedule A or by issuing an option endorsement), or implicitly insuring the option (e.g., describe “rights” in Schedule A when the document includes an option).

Requirement

OPTR01 STG

Require Release of Option

The right or option of _________________ to purchase the land upon terms and conditions established in the instrument recorded ______________. The Company requires satisfactory quitclaim of the land from said person (and spouse, if any). At that time, the Company may make additional requirements or exceptions.
Comment: Unless state law imposes a clear statute of limitations on an option, you must require a recordable release or quitclaim.

Note: You may add additional local requirements here. Please consult with our underwriting personnel in preparing appropriate provisions.

See Underwriting Manual

Exception

OPTX01 ALTA

Option

An option agreement dated __________, executed by ________, as optionor and _________, as optionee, as disclosed by document recorded ____________. The Company makes no representation as to the present ownership of this interest.
Comment: Unless state law imposes a clear statute of limitations on an option, you must except to an unreleased (and unexercised) option.

Schedule A

OPTS01 STG

Option is Insured

Option to purchase ___________ as described in instrument dated _____________ between ________________, optionor, and ___________, optionee, recorded ________________.
Comment: You must consult with the Company before expressly insuring an option (by describing in Schedule A or by issuing an option endorsement), or implicitly insuring the option (e.g., describe “rights” in Schedule A when the document includes an option).