T-17 Guideline - TX Planned Unit Development Endorsement

Organizational Guidelines

T-17 Guideline - TX Planned Unit Development Endorsement

Guideline Document
V 1


The T-17 endorsement is issued in conjunction with Loan Policies. It covers planned unit developments which may include "de minimus" PUD's. A Planned Unit Development will consist of a fee simple interest in a townhouse, patio home or single-family residence together with an appurtenant easement over common elements or together with an undivided interest as co-tenant in common elements.  It may also be used whenever a Property Owner’s Association owns or operates common amenities such as a clubhouse, pool, or tennis courts.  Please review Procedural Rule P-9(b)(14).

Please also see R-11k for more information regarding this endorsement.

The T-17 endorsement is issued with a Loan Policy only.  

Underwriting Requirements:

(1)        The examination must not reflect that the present development violates outstanding prior restrictions. For example, sometimes older restrictions prohibit more than one residence on a platted lot and the townhouse development violates such restrictions by multi-unit development.

(2)        The restrictions may not contain forfeiture or reversionary provisions (unless expressly subordinate to the insured mortgage).

(3)        Any maintenance assessment secured by a lien in the restrictions and due prior to the Date of Policy must be paid.

(4)        If the restrictions provide for a maintenance assessment lien, then the declaration must state that the assessment lien is subordinate to the lien of the insured mortgage or take exception to such assessment liens if not expressly subordinate.

(5)        The property must be residential property.

(6)        Do not issue this endorsement if you know of any significant encroachments or boundary conflicts.  See discussion under T-19 endorsement for more on this issue. 

(7)        If the restrictions provide for a right of first refusal, then you must verify with the association that the right will not be exercised in connection with the current or prior transactions.

(8)        Do not issue a T-17 PUD Endorsement and a T-28 Condominium Endorsement on the same property. 

For further guidance, refer to the applicable subsections in Section 11.04 of the National Underwriting Manual on Virtual Underwriter http://www.vuwriter.com/vumanuals.jsp?displaykey=UM00000208

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):