CLTA Priority of Lease Endorsement Guideline 119
Explanation:The CLTA 119 Endorsement provides the lender on the leasehold or the fee with insurance against loss by reasons of any defect in the execution of the lease and the order of priority.
Underwriting Requirements:(1) The issuance of this endorsement requires a determination of the following:
(a) The lease, when recorded, was properly executed by the record owner as lessor and said owner was capable of contracting;
(b) There has been no quit claim deed or other termination of the leasehold; and
(c) The lease is properly shown on the policy according to the order of its priority.
The underwriting guidelines contained herein have been provided for general reference. The facts, circumstances, and location of the subject property should be considered when determining the issuance of the requested form or endorsement. Please note that all of the forms and endorsements included in this system may not be available in all states. Accordingly, please contact the appropriate Stewart Title Guaranty Company underwriting personnel in order to determine availability.
Compliance with the underwriting guidelines contained herein in no way obligates Stewart Title Guaranty Company to issue any form or endorsement.
This guideline applies to the following form(s):