FL Option Endorsement Guideline 1
This endorsement insures the enforceability of the right to exercise an option to purchase real property. Coverage is not provided if the claim is based on the failure of the insured to have fulfilled the terms and conditions of the option. The endorsement also insures the priority of the option to purchase over any conveyance or encumbrances created after the date of the policy except those created or consented to by the insured. It also excepts from coverage any liens or taxes in favor of governmental bodies or public utilities. Further, the endorsement does not provide coverage against loss resulting from construction liens or judicial cancellation of the option pursuant to bankruptcy or state creditors' rights laws.
The endorsement also states what type of loss is covered and the measure of loss or damage suffered by the insured.
Underwriting Requirements:Since a legal opinion is required to determine the validity and enforceability of the option agreement, issuance of this endorsement should be approved by the appropriate Stewart Title Guaranty underwriting personnel.
Any revision to this form requires approval of a Stewart Title Guaranty Company underwriter. 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):