To PUD or not to PUD...

Effective Date: 
Tuesday, September 22, 2015 - 10:00am

The Underwriting Department has received several inquiries from members regarding when it is appropriate to issue the Planned Unit Development endorsements (ALTA 5 and ALTA 5.1). The endorsements may be issued for any real estate development, other than a condominium development, for which the condominium endorsements (ALTA 4, and ALTA 4.1) would apply, in which there is a recorded declaration granting an association of owners the right to enforce restrictive covenants, a right and lien of assessment, and, possibly, a right of first refusal. Thus, a PUD could be a development of single-family homes, townhomes, or a combination both. It is not necessary that the development contain condominium units. If, however, there is no recorded declaration granting such rights to an association, a PUD endorsement would not be appropriate.

If there is any question whether a PUD endorsement, or any other endorsement, should be issued, you may contact the Underwriting Department.

Posted on: Tue, 09/22/2015 - 10:09am