Endorsements: Form 2134-06 Instructions

NOTES:

Coverage:

This endorsement provides coverage on a Loan Policy insuring improved or unimproved land. It defines "covenant" as a covenant, condition, restriction, or limitation contained in a document or instrument in effect at the Date of Policy; it defines "private right" as a private charge or assessment, an option to purchase, right of first refusal, or right of prior approval of a purchaser or lessee. This endorsement insures the insured against the following matters:

1. The invalidity, unenforceability, or lack of priority of the insured mortgage due to the enforcement of a private right contained in a covenant affecting title a the Date of Policy;
2. Loss of title by the insured lender after acquisition of title in satisfaction of the indebtedness.

The endorsement does not insure any covenant 1) contained in a lease, 2) obligating maintenance, repair, or remediation on the land, or 3) relating to environmental protection, except as otherwise insured by the endorsement.

Procedure: This endorsement may be issued on Loan Policies only. To issue this endorsement, the following requirements must be satisfied:

1. Carefully review each covenant to determine what additional information or documents (e.g., surveys, affidavits or letters from adjoining landowners, condominium or homeowner boards, governmental bodies, etc.) may be required in order to determine if there is a violation of that covenant:
2. Review the survey, affidavits and other documents to determine if there is or may be a violation of the covenant. Raise a Schedule B exception for the specific violation.

Questions? Contact an Underwriter.