T-4R Guideline - TX Residential Leasehold Endorsement

Organizational Guidelines

T-4R Guideline - TX Residential Leasehold Endorsement

Guideline Document
V 1


This endorsement may be used with T-1R Owner’s Policy that insures a loan secured by a leasehold estate.  This endorsement contains provisions as to the valuation of the estate or interest insured in computing loss or damage under the policy and additional items of loss covered.

Underwriting Requirements:

Please also see P-9a(1),P-66A and  R-22 as applicable to endorsement T-4R.

1.         Obtain and review a copy of the executed Lease Agreement, including all executed amendments.

2.         Obtain and record either a recordable form of the Lease Agreement (and amendments) or a recordable Memorandum of Lease.

3.         Add dd____, rec. _____; by and between ______ and __________________   terms, conditions and provisions of the Lease Agreement as an exception to Schedule B.

6.         Verify that all other required consents to the mortgage of the Leasehold Estate to the Insured have been obtained or except to the same.

7.         In the event the Lessee has obtained the Leasehold Estate by assignment, you must be satisfied that the assignment to the Lessee has been authorized and approved by the Lessor and to the extent required by others, such as a lender holding a lien on the Lessor’s Land.

8.         A complete examination of the fee title must be made in order to establish that the Lessor named in the Lease Agreement had fee title to the property described in the Lease Agreement at the time of the execution of the Lease Agreement.

9.         All outstanding exceptions to the fee title prior to the recording of the Lease Agreement or the Memorandum of Lease must be shown as exceptions on Schedule B.



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):