The following provision is added to paragraph 1 of the Conditions and Stipulations of this Policy: “‘Leasehold Estate,’ the right to possession for the term or terms described in Schedule A hereof subject to any provision contained in the lease, which limit such right of possession.”
Comment: If you insure a lease on a standard ALTA Owner’s or Loan Policy and you do not attach the Leasehold Policy Modification Endorsement, you should add this definition to the Policy and the commitment.
(a) Proof is required to show that such lease has not been assigned, altered, modified or amended previously, except as shown in this certificate; that said lease is in full force and effect and that no defaults now exist in relation thereto;
(b) An estoppel certificate is required from the owner of the fee and from the holders of all subordinate interests therein;
(c) Policy will except all the terms, covenants, conditions, provisions and agreements contained in said lease being assigned; [Add where applicable: as modified, altered or amended by agreement dated __/__/__, made by and between __(name)__ and __(name)__;]
(d) The assignment of lease to be made should contain the covenant required by the Lien Law, and such covenant must be absolute and not conditional.
(a) the lessee, certifying the amount remaining unpaid on the leasehold mortgage to be assigned, and
(b) the lessor, certifying that the lease remains in full force and effect, that there are no present defaults by the tenant under the lease.
Note: You may add additional local requirements here. Please consult with our underwriting personnel in preparing appropriate provisions.