LA ALTA Endorsement Form 13 Leasehold Owners and 13.1 Leasehold Loan

Organizational Guidelines

LA ALTA Endorsement Form 13 Leasehold Owners and 13.1 Leasehold Loan

Guideline Document
V 1


The ALTA Leasehold Owners and Leasehold Loan Policies were designed to provide insurance appropriate for space tenants that have no significant investment in tenant improvements. As a result, these policies do not provide compensation for the value of those improvements if they are lost, or legitimate uses of them are impaired, as the result of a matter covered by the policies. Input from the real estate community over the years has disclosed that a substantial sector of real estate leasing activity consists of transactions in which tenant leasehold improvements are an important, if not critical, part of the transaction. Prime examples are office buildings and industrial buildings built on ground leases.

ALTA Endorsement Forms 13 and 13.1 were created as attachments to the ALTA Owners Policy and ALTA Loan Policy, respectively. They are intended to be used either with policies covering only leasehold estates or for those that insure both leasehold estates and the ownership of improvements located on them. They provide all the existing coverage's of the leasehold policy and correct the problem respecting tenant improvements mentioned above. These endorsements include the value of such improvements in the calculation of losses resulting from eviction based on a matter insured by the policy. Similarly, improvement value is included if the insured tenant is unable to use the property for its intended purpose as a result of a matter covered by the policy, assuming the lease permits such a use.

Reimbursement to insured lessees for specified out-of-pocket construction costs for improvements on the land that were substantially incomplete at the time of eviction is also provided.

All the coverage of the existing ALTA Leasehold forms exist when these endorsement are added to their respective policies.

Charge: No charge for the endorsement, because we will charge the original issue rate for the owners or mortgagee policy to which it attaches.

Note: Please use the following language to describe the interest to be insured on Schedule A of the policy:
The leasehold estate created by the Lease executed by ________, as lessor, to __________, as lessee, dated _________ and recorded on ________ at ________, Parish of _________, Louisiana.
And the following to describe the land on Schedule A:
The leasehold estate created by the Lease executed by ______, as lessor, to _____ as lessee, dated ________, recorded at __________, Parish of _________, Louisiana, demising and leasing for a term of _______, beginning _______ and ending ______, describing subject property, to wit:

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