CLTA Partial Reconveyance Endorsement Guideline 111.1

Organizational Guidelines

CLTA Partial Reconveyance Endorsement Guideline 111.1

Guideline Document
V 1


This endorsement provides an insured lender with assurance that the policy liability for payment of a loss will not be reduced as a result of the execution of a partial reconveyance of the deed of trust or mortgage except to the extent any consideration received by the lender for the partial reconveyance. This endorsement is an alternate to the CLTA 111 Endorsement.

Underwriting Requirements:

(1) Generally, a lender with knowledge of the rights of third parties in a portion of the land secured by the deed of trust or mortgage, cannot release their lien as to portions of the land for less than the reasonable value of such land released if they want to enforce the balance of the obligation against the remaining land. However, where it appears of record that the trustor and the beneficiary reached a different agreement, any person dealing with all or a part of the secured land is charged with knowledge of that agreement and are bound by that agreement.
(2) 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 reconveyed is the same as the owner of the remaining lands under the deed of trust or mortgage; and
(b) The partial reconveyance is in full compliance with the partial release clause in the deed of trust or mortgage.
(3) In states other than California, specific state law in this area must be reviewed and appropriate Stewart Title Guaranty underwriting personnel consulted.

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