Endorsements: Form 2099-06 Instructions

Form Number/Name

Comt.

Owner’s

Loan

Const.

#2099-06: Covenants, Conditions, and Restrictions – Improved Land – Owner’s Endorsement (ALTA 9.2-06)

 

X

 

 

NOTES:

Coverage:

This endorsement provides extensive coverage on an Owner’s Policy insuring improved land. It defines “covenant” as a covenant, condition, restriction, or limitation contained in a document or instrument in effect at the Date of Policy, and “improvement” as a building, structure, road, walkway, driveway, or curb, affixed to the Land at Date of Policy. This endorsement insures the insured against the following matters:

  1. A violation at Date of Policy of an enforceable covenant; unless an exception in Schedule B identifies the violation;
  2. Enforced removal of an improvement due to a violation at Date of Policy of a building setback line; unless an exception in Schedule B identifies the violation;
  3. A recorded notice of violation of an enforceable covenant relating to environmental protection, to the extent the violation referred to in the notice, unless an exception in Schedule B identifies the notice of violation.

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 an Owner’s Policy. To issue this endorsement, the following requirements must be satisfied:

  1. Carefully review each covenant in any document in the chain of title 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. If you find any violations, then raise Schedule B exceptions for those violations.
  2. Obtain and review a current survey of the property to determine if there is or may be a violation of any building setback line. Raise a Schedule B exception for the specific violation.
  3. Review all documents in the chain of title for notice of any environmental problems and raise Schedule B exceptions for any you find.

Questions? Contact an Underwriter.

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