STG Covenant Enforceability Endorsement 1

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STG Covenant Enforceability Endorsement 1

Form Document
V 1

This form should not be used if a comparable ALTA version is available. If a comparable ALTA version is available, the most current version of the ALTA form available in each state should be used, unless approved by a Stewart underwriter.


Attached to Policy No. __________

Issued by


The Company hereby assures the Insured:

That, as shown on the public records, the covenants of _____________ , as covenantor, in favor of __________________ , as covenantee, set out in Section(s) ____________________ , and ___________________ of the instrument recorded __________________ to refrain from using the real property described in the Exhibit to this Endorsement (the "burdened property") for purposes of ___________________________________________________________________________________ are binding upon the covenantor and each successive owner, during his ownership, of any portion of such burdened property, and upon each person having any interest therein derived from the covenantor or through any such successive owner thereof (except a mortgagee, or trustee or beneficiary of a deed of trust, while not in possession in such capacity).

Provided, however, that no assurance is hereby given that such covenants shall bind a successive owner who derives his title through: (a) a tax deed; (b) a foreclosure of a bond or assessment or charge; (c) enforcement of a federal tax lien; (d) bankruptcy, as trustee or otherwise; (e) a right or lien existing prior to the date of recording of the instrument containing said covenants (delete (e) only if all prior liens on the restricted property are released or subordinate to the covenant).


The Company hereby insures the Insured against loss which said Insured sustain in the event that the assurance herein shall prove to be incorrect; provided, however, that this Endorsement does not insure (1) the performance of any of said covenants, nor (2) against any judgment or order of court invalidating any of said covenants as being in restraint upon fair trade or in restraint upon fair competition or in violation of antitrust laws, nor (3) against unenforceability by reason of waiver, estoppel, laches or acquiescence (paragraph (3) can be deleted limited to "after Date of Policy" if satisfactory evidence of current and prior use is furnished).

Provided, further, that the Company shall not be liable for costs, attorney's fees and expenses that may be incurred in connection with litigation to the extent it is founded upon allegations that such covenants are in restraint upon fair trade or in restraint upon fair competition or in violation of antitrust laws.

The total liability of the Company under said Policy and any endorsements therein shall not exceed, in the aggregate, the face amount of said Policy and costs which the Company is obligated under the Conditions and Stipulations thereof to pay.

This Endorsement is made a part of said Policy and is subject to the Exclusions from Coverage, Schedules, Conditions and Stipulations therein, except as modified by the provisions hereof.

[Witness clause optional]

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.

Copyright 1970-2022 Stewart Title Guaranty Company. All rights reserved. The use of this form (or any derivative thereof) is restricted to Stewart Title Guaranty Company, it’s issuing agents, and affiliates in good standing as of the date of use. All other uses are prohibited.

For issuing guidelines on this form, see Guidelines.