The Florida Office of Insurance Regulation has approved modifications to the following endorsements which are issued in Florida:
ALTA 9-06 Restrictions, Encroachments, Minerals with Florida Modifications (for Loan policy)
ALTA 9.1-06 Restrictions, Encroachments, Minerals with Florida Modification (for Owner’s policy - Unimproved land)
ALTA 9.2-06 Restrictions, Encroachments, Minerals with Florida Modifications (for Owner’s policy - Improved land)
ALTA 10-06 Assignment with Florida Modifications
ALTA 14-06 Future Advance - Priority Endorsement with Florida Modifications
ALTA 14.2-06 Future Advance - Line of Credit with Florida Modifications
ALTA 14.3-06 Future Advance - Reverse Mortgage with Florida Modifications
The ALTA 9 endorsements, which are sometimes referred to as comprehensive endorsements, provide coverage for loss resulting from violations of covenants, conditions and restrictions, and the exercise of mineral rights as well as encroachments of boundary lines, easements and set back lines. Coverage for violations of easements and setbacks is not provided in the 9.1-06 and 9.2-06 which are to be issued with owner’s policies.
The reason for the change to the 9 Series endorsement is to include an additional clause which is intended to clarify coverage. As was the case prior to these changes, it is necessary to review restrictions contained in recorded deeds in the chain of title, declarations of condominiums and home association’s covenants and restrictions, as well as those noted on surveys.
The ALTA 10-06 (Assignment) Endorsement replaces the Florida Assignment of Mortgage Endorsement. This endorsement provides coverage to an assignee of a mortgage. A Stewart policy insuring the mortgage being assigned is a requirement to issue this endorsement. In addition, when issuing this endorsement, please make certain that there is no break in the chain of assignments of the insured mortgage and there is not a recorded satisfaction of the mortgage. Further, in addition to the mortgage being validly assigned, the note secured by the lien of the insured mortgage should be properly endorsed and delivered to the assignee of the mortgage.
The ALTA 14 Series endorsements insure the priority of advances of principal made after the date of the policy as set forth in the note or loan agreement secured by the insured mortgage. The changes to these endorsements were intended to clarify language and align them with the laws of Florida.
It is advised that you review the endorsements in their entirety.
If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.
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