Endorsements: Form 2021-06 Instructions

NOTES:

Coverage:

In all American Land Title Association (ALTA) policies, environmental protection matters are excluded from coverage under paragraph one of the Exclusions from Coverage, except if a notice of violation or potential violation is recorded at the Date of Policy. The Environmental Protection Lien Endorsement (ALTA Form 8.1) insures the lender on residential real estate against loss of priority due to any recorded environmental protection liens, and from any lien provided under state statute, except for any state statute specifically excepted within the endorsement.

Be aware that despite the fact that a title search may reveal no environmental protection liens of record, if there are any other documents (such as an Illinois Responsible Property Transfer Act (IRPTA) disclosure form, now repealed, a mechanics’ lien claim for clean-up, a municipal demolition lien, etc) that reveal a violation or potential violation of the environmental laws, then an exception must be raised on Schedule B in accordance with ATG’s underwriting guidelines for environmental liens.

There is no special environmental coverage available for Owner’s Policies.

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

1. Search the county recorder’s office to discover any federal and state environmental protection liens, IRPTA disclosure documents or other recorded documents that might indicate an environmental problem on the property.
2. If the state in which the property is located does not have a statute requiring that federal liens are to be recorded in the county recorder of deeds office, then the federal district court records of the district in which the property is located must be searched for any federal environmental liens.
3. If an environmental protection lien appears in the chain of title, then raise the lien and the “fact” exceptions, according to ATG’s underwriting guidelines for environmental liens.
4. If an IRPTA disclosure document is recorded, and there are no other documents disclosing violations or potential violations of environmental laws, then the endorsement may be issued. The “fact” exception must be raised on Schedule B of the commitment and policies.
5. If an unreleased federal or state lien is discovered, do not issue the endorsement. Raise the lien and the “fact” exceptions on Schedule B of the commitment and policies.
6. If a released state or federal lien is discovered, then you may issue the endorsement provided an exception is raised on Schedule B.
7. If a No Further Remediation Letter appears of record, raise an exception for the letter, and the fact exception, and you may issue the endorsement.
8. If there is any evidence or knowledge of an environmental risk but no lien or other document has been recorded, contact an Underwriter for instructions.
9. There is an additional premium for the issuance of this endorsement. Consult the current rate schedule.

Questions? Contact an Underwriter.