CLTA Mechanic's Lien Coverage Endorsement Guideline 101.13
Explanation:Provides the lender with insurance concerning mechanic's liens arising out a particular work of improvement disclosed by recorded notice of completion. The endorsement provides the lender with insurance as to mechanic's liens resulting from the particular work of improvement regardless of whether the liens are prior or superior to the insured mortgage.
(1) This endorsement may be issued provided that 60 days have passed from recording of the notice of completion and no claims of lien arising from work referred to within the notice of completion have been filed; or, an indemnity which is acceptable to Stewart Title Guaranty underwriting personnel has been approved.
(2) If the endorsement is modified to cover only a portion of the land covered on Schedule A of the policy, the liability under the endorsement must be limited to a specified sum.
(3) The amount of liability shown in the endorsement should never exceed the amount of insurance shown on Schedule A of the policy.
(4) This guideline is for California property. The appropriate Stewart Title Guaranty underwriting personnel must be contacted prior to issuance in other states.
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):