Endorsements: Form 2024 Instructions

Form Number/Name

Comt.

Owner’s

Loan

Const.

#2024: Gap Coverage Endorsement

X

      

NOTES:

Coverage:

Gap coverage means waiving Special Exception No.1 on the commitment for an insured. This exception reads as follows:

Defects, liens, encumbrances, adverse claims, or other matters, if any, created, first appearing in the public records, or attaching subsequent to the Effective Date hereof but prior to the date the proposed Insured acquires for value of record the estate or interest or mortgage thereon covered by this Commitment.

This endorsement is issued on the commitment and insures the time period from the effective date of the commitment up to and including the date the deed is recorded vesting title in the proposed insured by waiving this exception.

Procedure: This endorsement may only be issued on commitments. The Gap Coverage Endorsement poses great risk on ATG. Therefore, you must use great care in complying with the following procedures to issue this endorsement. 

Most lenders will require gap coverage in their title insurance requirements contained in the closing instructions. Occasionally, a buyer will specifically request gap coverage. The requirements to provide gap coverage differ, depending upon the type of closing for the transaction, as follows below.

In order to issue the Gap Coverage Endorsement, follow the requirements set forth in Chapter 4 - VI of Title Forms and Procedure

Questions? Contact an Underwriter.

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