CO Loss of Priority by Partial Release Endorsement Guideline 111
Explanation:This endorsement provides the lender with insurance against the loss of lien priority of the insured deed of trust or mortgage on the remainder of the land secured by said deed of trust or mortgage after the recording of a partial release. The recordation of a partial release on a portion of the land secured by a deed of trust for less than the reasonable value could prejudice the rights of third parties on the part of the land remaining (i.e., a greater portion of the debt is left against the remaining property than before the release).
(1) The requirements for issuance of this endorsement are as follows:
(a) A current title search of the remaining land showing 1) no encumbrances subordinate to the insured deed of trust or mortgage; and the owner of the land partially released is the same as the owner of the remaining lands under the deed of trust or mortgage; and
(b) The partial release is in full compliance with the partial release clause in the deed of trust or mortgage.
(2) Specific state law in this area must be reviewed and appropriate Stewart Title Guaranty underwriting personnel consulted.
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):