T-4 Guideline - TX Leasehold Owner's Policy Endorsement

Organizational Guidelines

T-4 Guideline - TX Leasehold Owner's Policy Endorsement

Guideline Document
V 1


This endorsement may be used with the T-1 Owner’s Policy that insures a leasehold estate and the Insured is the Lessee under a lease.  This endorsement contains provisions as to the valuation of the estate or interest insured in computing loss or damage under the policy and additional items of loss covered.

Underwriting Requirements:

Please also see P-9a(1), P-66A(2) and R-22 as applicable to endorsement T-4. 

1.         Obtain and review a copy of the executed Lease Agreement, including all executed amendments.

2.         Obtain and record either a recordable form of the Lease Agreement or a recordable Memorandum of Lease.

3.         Add the terms, conditions and provisions of the Lease Agreement as an exception on Schedule B.

4.         In order to accommodate customers, obtain a current estoppel certificate from the Lessor acknowledging the Insured as the Lessee under the Lease and certifying that (i) the Lease Agreement is in full force and effect, (ii) the copy attached to the estoppel is a correct and complete copy of the Lease Agreement, including all amendments, (iii) the Insured is in compliance with the provisions of the Lease Agreement and (iv) there are no existing defaults under the Lease Agreement.

5.         In the event the Insured has obtained the Leasehold Estate by assignment, you must be satisfied that the assignment to the Insured has been authorized and approved by the Lessor and by any others to the extent required, such as a lender holding a lien on the Lessor’s Land.

6.         A complete examination of the fee title must be made in order to establish that the Lessor named in the Lease Agreement had fee title to the property described in the Lease Agreement at the time of the execution of the Lease Agreement.

7.         All outstanding exceptions to the fee title prior to the recording of the Lease Agreement or the Memorandum of Lease must be shown as exceptions on Schedule B.

For further guidance, refer to the applicable subsections in Section 11.04 of the National Underwriting Manual on Virtual Underwriter http://www.vuwriter.com/vumanuals.jsp?displaykey=UM00000208

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):