NJ Short Form Residential Loan Policy and Addendum Guideline 2-10

Organizational Guidelines

NJ Short Form Residential Loan Policy and Addendum Guideline 2-10

Guideline Document
V 1


The Short Form Residential Loan Policy is issued to a lender making a loan secured by a one-to-four family residential lot or condominium.

The policy insures against the invalidity or unenforceability of the lien of the mortgage and against loss or damage should the priority of the mortgage be other than as shown in the policy. The insuring provisions of the policy are broad. However, their coverage is limited by the Exceptions in Schedule B, the Exclusions from Coverage and the Conditions and Stipulations of the policy.

In other ALTA policy forms (except the Master Residential Loan Policy) all of the policy provisions are contained within the policy itself.

The Short Form Policy uses a different format.

This Short Form Policy incorporates by reference the Exclusions and Conditions and Stipulations contained in a standard ALTA Loan Policy form. It contains a printed Schedule B which excepts to certain defects, liens and encumbrances. However, certain specific coverage is given with regard to these matters. Coverage may include violation of building restrictions, damage from the use of easements, encroachments and damage to the land from the exercise of mineral rights. Title risks that are unacceptable to the insurer are shown in an Addendum to the policy.

Additional coverage by certain standard endorsements may be added merely by checking appropriate boxes in the policy form.

A desirable feature of the Short Form Policy is that it may be easily reviewed by the lender and requires reduced file space.

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):
  • None