NY ALTA Restrictions, Encroachments, Minerals Endorsement Guideline 9
Explanation:Purpose Of Endorsement:
The ALTA 9 endorsement is the successor to the CLTA “Comprehensive” endorsement. This endorsement provides a lender with affirmative coverage regarding restrictive covenants, easements and surface damage resulting from exercise of mineral rights. The endorsement does not preclude the use of affirmative insurance in connection with specific covenants, restrictions or easements, as long as the coverage afforded by the endorsement is not duplicated in its entirety.
Underwriting Requirements:Requirements For Issuance:
(1) A survey is required, preferably certified by the surveyor to meet ALTA/ACSM Land Title Survey standards. The ALTA/ACSM standard calls for the surveyor to locate evidence of easements and rights of way, including surface indications of underground easements; the survey must be compared with covenants, restrictions and easements of record, and there cannot be any improvement, encroachment or projection which interferes with or violates any of the covenants, conditions or easements.
(2) Any covenants, restrictions or conditions in the chain of title must be carefully reviewed and specific exception taken in Schedule B for any matters which are not supported by the statements in the endorsement under §1.(b). In addition, covenants, conditions or restrictions cannot adversely impact the lien or enforceability of the insured mortgage, or cause a loss of title if the mortgagee acquires a fee interest.
(3) No covenant or easement can cause damage to existing improvements, including lawns, shrubbery or trees (this alone will preclude issuance of the endorsement where any utility has the right to trim trees).
Issued With The Following Policies:
This endorsement is for loan policies only.
10% of unreduced (straight) mortgage premium.
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):None