CLTA Mechanic's Lien Coverage Endorsement Guideline 101.12

Organizational Guidelines

CLTA Mechanic's Lien Coverage Endorsement Guideline 101.12

Guideline Document
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Provides an insured owner of a large project with insurance against loss by reason of any mechanic's liens that may be filed against the owner's title to a specific and particular portion of the project whether or not the work is being completed on that particular portion of the project. This endorsement is used when no notice of completion is recorded.

Underwriting Requirements:

(1) This endorsement may be issued provided that an indemnity which has been previously approved by the appropriate Stewart Title Guaranty underwriting personnel is obtained; and

(2) The liability under the endorsement must be limited to a specified sum. The sum shown within the endorsement should be the amount of money advanced by the lender to cover the work of improvement which has been done only on the parcels to be covered. The amount of liability shown in the endorsement must not exceed the amount of insurance shown on Schedule A of the policy.

(3) This guideline is for California property. The appropriate Stewart Title Guaranty underwriting personnel must be contacted prior to issuance in other states.

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