Bulletin: OH2012003

Date:
August 13, 2012
To:
All Ohio Issuing Offices
RE:
New Forms Approved

Dear Associates: 

The Ohio Title Insurance Rating Bureau has approved the following ALTA forms for use in Ohio, effective September 1, 2012

ALTA Endorsement 20-06 (First Loss - Multiple Parcel Transacations).  Changes to this form are not substantive, and there has been no change in the rate which shall remain 15% of the original rate, minimum $250. 

ALTA Endorsement 32-06 (Construction Loan – Loss of Priority).  This endorsement may only be issued with a Loan Policy insuring a mortgage the proceeds of which are intended to finance the construction of improvements on the Land.  It provides coverage for the invalidity or unenforceability of the lien of the Insured Mortgage as security for each Construction Loan Advance made on or before the Date of Coverage; lack of priority of the Insured mortgage as security for each construction loan advance made on or before the Date of Coverage, over any lien or encumbrance on title in the Public Records and not shown in Schedule B; and lack of priority of the lien of the Insured Mortgage, as security for each Construction Loan Advance over any mechanic’s lien, but only to the extent that the charges for which the mechanics lien is claimed were designated for payment in the documents supporting a Construction Loan Advance disbursed by or on behalf of the Insured on or before the Date of Coverage. The rate for this endorsement is 25% of the Original Rate for Loan Policies in addition to the loan premium, minimum $500.

ALTA Endorsement 32.1-06 (Construction Loan – Loss of Priority – Direct Payment).  This endorsement is similar to the 32-06 but insures against mechanics liens “but only to the extent that direct payment to the Mechanic’s Lien claimant has been made by the Company or by the Insured with the Company’s written approval.”  The rate for this endorsement is 15% of the original rate for Loan Policies in addition to the loan premium, minimum $250.

ALTA Endorsement 33-06 (Construction Loan Disbursement).  Endorsements 32-06 and 32.1-06 each state that the Date of Coverage may be extended by ALTA Endorsement 33-06 (Disbursement), which provides a Date down of the Date of Coverage of mechanic’s liens.  The endorsement also contemplates possible changes to Schedules A and B.  The rate for this endorsement is $100. 

NOTE:  Each of these endorsements may be issued on any type of real property, including commercial or one-to-four family residential property. 

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