NJRB 5-162 New Jersey Contract Vendee’s Endorsement (NJ adopted 10/01/2014)
Attached to Policy No. __________
1. With respect to the Contract to Purchase or Installment Contract (the “Contract”) for the Land described in Schedule [A,][C,] referred to as the Contract set forth in Schedule A, No. ____, the Company insures the insured Contract Vendee named in Schedule A, No. 1, against loss or damage sustained or incurred by reason of:
a. the entry of a final, non-appealable judgment by a court of competent jurisdiction determining that the insured Contract Vendee does not have the right to obtain a fee simple title to the Land under the terms of the Contract, provided that the Insured shall have complied with all of the terms and conditions thereof.
2. Nothing contained in this endorsement shall be construed as insuring against loss or damage sustained or incurred by reason of any of the following:
a. failure of the insured Contract Vendee to record the entire Contract;
b. failure of the insured Contract Vendee to do everything necessary:
i. to secure proper deed(s) from the vendor, vendor’s successors in interest or the record title owner of the insured Land;
ii. to secure releases from other persons having an interest in the title or a lien on the insured Land;
iii. to secure a final court order which determines the persons entitled to receive payment from the insured Contract Vendee.
c. construction lien claims arising from labor or materials supplied prior to the Date of Policy ;
d. real estate taxes or other municipal liens or charges or environmental liens:
e. the right to receive any portion of a condemnation award arising from a taking of all or a portion of the Land; or
f. attorney’s fees and expenses in connection with a suit to enforce the Contract or concerning the subject matter thereof;
g. filing of a bankruptcy petition by or against the vendor, vendor’s successors in interest, or the record title owner of the insured Land;
h. liens, defects or encumbrances affecting the fee simple estate of the vendor subsequent to the Date of Policy of the policy to which this endorsement is attached.
3. The Company’s liability under this endorsement and the policy to which it is annexed shall be limited to the sum or sums paid by the insured Contract Vendee as of the Date of Policy, to or for the account of the vendor, pursuant to the terms of the Contract, and shall increase by any sums subsequently paid by the insured Contract Vendee to or for the account of the vendor, pursuant to the terms of the Contract, in good faith and without notice of adverse claim; provided, nevertheless, that in no event shall the Company’s liability hereunder exceed the Amount of Insurance set forth in Schedule A.
This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any of the terms and provisions of the policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy, or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous endorsement is inconsistent with an express provision of this endorsement, this endorsement controls. Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior endorsements.
[Witness clause optional]
No guidelines are available for this form at this time.