NY TIRSA Condominium Endorsement Guideline 4
Explanation:Purpose Of Endorsement:
This endorsement provides affirmative coverage against loss to the insured by reason of:
(a) the invalidity or failure of the condominium regime;
(b) present violation of C&R’s, or forfeiture, reversion or reverter provisions,
(c) priority of common charges or assessments over an insured mortgage,
(d) enforced removal of encroachments of unit onto common elements or another unit,
(e) failure of title because of failure to comply with rules relating to right of first refusal.
Underwriting Requirements:Requirements For Issuance:
(1) The unit involved must be part of a validly created condominium pursuant to the Condominium Act, Article 9-B of the Real Property Law (RPL §§ 339-d through 339-ii) and the regulations promulgated by the Attorney General (13 NYCRR 19.1 ff.):
(a) the condominium offering plan must be on file with the Attorney General;
(b) the declaration establishing the condominium regime and the bylaws must be recorded, and the floor plans must be filed, with the county recording officer;
(c) covenants and restrictions must be reviewed to insure that there is no forfeiture, reverter or reversionary language, nor any enforceable restrictive use violated by the existing improvements which could result in the condominium regime being annulled, set aside or enjoined;
(2) The Condominium Board of Managers must provide proof in writing that (i) there are no outstanding common charges; and (ii) the right of first refusal (if any is found) has been waived.
(3) The unit must be separately assessed on the tax rolls.
Issued With The Following Policies:
Owner’s and loan policies, insuring condominium units, on request.
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