CLTA Assignment of Rents Endorsement Guideline 104.7
Explanation:Provides the lender whose mortgage or deed of trust contains an assignment of rents with assurances concerning earlier assignments disclosed by the public records.
DO NOT ISSUE THIS ENDORSEMENT(S) IF THERE ARE MULTIPLE BENEFICIARIES UNLESS YOU SECURE THE APPROVAL OF A STEWART SENIOR UNDERWRITER.
(1) This endorsement is generally utilized on loans to be made on income producing property where the lender also takes an assignment of the borrower's interest in rents as additional security for the loan.
(2) In order for this endorsement to be useful to the lender, its insured deed of trust or mortgage should be subordinate to existing leases, recorded or unrecorded, on the land.
(3) The following requirements must be met before issuing this endorsement:
(a) A search of title discloses no prior assignments of lessor's interest under leases other than those that will be set out in Schedule B of the policy; and
(b) The search discloses no prior assignment of rents whether contained in a prior existing deed of trust or mortgage or in a separate instrument.
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):