NJRB 5-163 New Jersey Option Endorsement (NJ adopted 10/01/2014)
Attached to Policy No. ________
1. With respect to the Option to purchase (the “Option”) set forth in an instrument more particularly described in Schedule A hereof, the Company insures the Insured named in Schedule A 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 does not have the right to obtain a fee simple title to the Land under the terms of said Option, 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. any lien or right to a lien, for services, labor or materials heretofore or hereafter furnished, imposed by law;
b. any lien on the title for real estate taxes or assessments or environmental liens imposed by any governmental authority;
c. any right to receive any portion of a condemnation award arising from the exercise of eminent domain affecting all or a portion of the Land;
d. attorneys’ fees and expenses in connection with a suit to enforce the Option or concerning the subject-matter thereof,
e. any claim, by reason of the operation of federal bankruptcy, state insolvency or similar creditors’ rights laws that the Option is unenforceable;
f. filing of a bankruptcy petition by or against the optionor or owner of the fee simple estate in the Land,
g. defects, liens, encumbrances, adverse claims or other matters, if any, first appearing in the public records or attaching subsequent to the Date of Policy.
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 as of the Date of Policy, to or for the account of the optionor, pursuant to the terms of the Option, and shall increase by any sums subsequently paid by the insured to or for the account of the optionor, pursuant to the terms of the Option, 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]
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