TITLE INSURANCE OPTIONAL COVERAGE ENDORSEMENTS

(September 2023)

The American Land Title Association (ALTA) has developed a number of standard endorsements compatible with their title insurance policies. Their program also offers options for insuring against the negative consequences of the following:

· Environmental protection liens

· Enforcement of covenants, conditions and restrictions

· Damage due to water and mineral development

· Accuracy of boundaries

Coverage may also be available for certain events that occur after the title policy is issued, such as the risk that a third party may place a forged mortgage or deed of trust against a property after the owner’s policy has been issued. Following are several forms available for use by policy owners.

ALTA Form 1–Street Assessments

This form may be attached to the ALTA Loan Policy. It protects the lender/policyholder against loss due to assessments made for either on-going or completed street improvements.

ALTA Form 2–Federal Truth in Lending (withdrawn)

ALTA Form 3–Zoning Unimproved Land

This option provides a description of precisely how unimproved land may be used according to applicable zoning laws. The form protects against loss related to an unforeseen ability to use the land as intended.

ALTA Form 3.1–Zoning – Completed Structure

This option is similar to ALTA Form 3, protecting against loss caused by an inability to use improved land, including its existing structures, as intended. Use of this form includes a description of applicable zoning laws.

ALTA Form 3.2-Zoning - Land Under Development

ALTA Form 3.3-Zoning – Completed Improvement – Non-Conforming Use

This option can be used when an insurance company supports coverage for property that it knows is used non-traditionally

ALTA Form 3.4-Zoning – No Zoning Classification

This option may be used when an insurer supports coverage for property that does not have a classification.

ALTA Form 4–Condominium – Loan Policy

This option insures against loss caused by an insured condominium estate that fails to comply with local laws. It also protects against loss due to violations of covenants, conditions, encroachment and restrictions.

ALTA Form 4.1–Condominium

This form is similar to the form 4 that, conversely, protects against loss arising out of assessments or charges that, due to title research, should NOT exist at the inception date of an issued title policy.

ALTA Form 5–Planned Unit Development – Loan Policy

This form is also similar coverage to ALTA Form 4. Used only with lenders policy, it protects against the negative consequences to planned unit developments. Such losses must arise out of the violations of restrictive covenants, forfeiture, reversions or assessments.

ALTA Form 5.1–Planned Unit Development

This form is similar to Form 5 in that, conversely, it protects against loss arising out of the negative consequences to planned unit developments. Such losses must arise out of the violations of restrictive covenants, forfeiture, reversions or assessments that should NOT exist at the inception date of an issued title policy.

ALTA Form 6–Variable Rate Mortgages

Insures against loss created by the provisions of a loan agreement provision that allows an interest rate change that would invalidate an insured mortgage agreement.

ALTA Form 6.2–Variable Rate Mortgage with Negative Amortization

This form insures against loss caused by application of a variable interest rate loan that includes negative amortization features. However, the form is likely only to be used with a title insurance policy that includes a limit issued higher (typically 110 to 125%) than the property loan amount.

ALTA Form 7–Manufactured Housing Unit

This option insures the policy owner against loss caused by the eventuality that, by law, mortgage property in the form of manufactured housing is considered to be personal rather than real property. Use of this form depends upon applicable state law, particularly a state’s property tax law. May be used with either Owner’s or Loan Policy.

ALTA Form 7.1–Manufactured Housing Unit- Conversion: Loan Policy

This option serves same purpose as form 7, applying only to Loan Policy.

ALTA Form 7.2–Manufactured Housing Unit -Conversion: Owner's Policy

This option serves same purpose as form 7, applying only to Owner’s Policy.

ALTA Form 8.1–Environmental Protection Lien

When used with an ALTA loan policy that is secured by a deed of trust or mortgage on residential property, it protects against loss caused by publicly recorded environmental protection liens.

ALTA Form 8.2–Commercial Environmental Protection Lien

This option serves same purpose as form 8.1, applying to either Owner’s or Loan Policy.

ALTA Form 9–Restrictions, Encroachments & Minerals

This option protects an insured lender against the financial consequences of unpublicized defects, more specifically, against problems caused by third party rights for access to mineral deposits, covenants/restrictions, and encroachments.

Note: The following forms are purely for reference. These forms are intended to address coverage needs for commercial as opposed to residential property.

Additional information is available for ALTA form subscribers:

ALTA Form 9.1–Restrictions, Encroachments, Minerals Owner's Policy: Unimproved Land

ALTA Form 9.2–Restrictions, Encroachments, and Minerals–Owner's Policy: Improved Land

ALTA Form 9.3–Restrictions, Encroachments, Minerals–Loan Policy

ALTA Form 9.4– Withdrawn

ALTA Form 9.5–Withdrawn

ALTA Form 9.6–(Private Rights – Current Assessments – Loan Policy)

ALTA Form 9.6-1–(Private Rights – Loan Policy)

ALTA Form 9.7–Restrictions, Encroachments, Minerals – Land Under Development – Loan Policy

ALTA Form 9.8–Covenants, Conditions and Restrictions – Land Under Development – Loan Policy

ALTA Form 9.9–(Private Rights – Owner’s Policy)

ALTA Form 9.10–Restrictions, Encroachments, Minerals – Current Violations – Loan Policy

ALTA Form 10– Assignment

ALTA Form 10.1– Assignment and Date Down

ALTA Form 11–Mortgage Modification

ALTA Form 11.1–Mortgage Modification with Subordination

ALTA Form 12–Aggregation

ALTA Form 13–Leasehold–Owners Policy

ALTA Form 13.1–Leasehold–Loan Policy

ALTA Form 14–Future Advance–Priority

ALTA Form 14.1–Future Advance–Knowledge

ALTA Form 14.2–Future Advance–Letter of Credit

ALTA Form 14.3–Future Advance–Reverse Mortgage

ALTA Form 15–Non-Imputation–Full Equity Transfer

ALTA Form 15.1–Non-Imputation–Additional Insured

ALTA Form 15.2–Non-Imputation–Partial Equity Transfer

ALTA Form 16–Mezzanine Financing

ALTA Form 17–Access and Entry

ALTA Form 17.1–Indirect Access and Entry

ALTA Form 17.2–Utility Access

ALTA Form 18–Single Tax Parcel

ALTA Form 18.1–Multiple Tax Parcel - Easements

ALTA Form 18.2–Multiple Tax Parcel

ALTA Form 18.3–Single Tax Parcel and ID

ALTA Form 19–Contiguity-Multiple Parcels

ALTA Form 19.1–Contiguity-Single Parcel

ALTA Form 19.2–Contiguity-Specified Parcels

ALTA Form 20–First Loss-Multiple Parcel Transactions

ALTA Form 22–Location

ALTA Form 22.1–Location and Map

ALTA Form 23–Coinsurance – Single Policy

ALTA Form 24–Doing Business

ALTA Form 25–Same As Survey

ALTA Form 25.1–Same As Portion of Survey

ALTA Form 26–Subdivision

ALTA Form 27–Usury

ALTA Form 28–Easement – Damage or Enforced Removal

ALTA Form 28.1–Encroachments – Boundaries and Easements

ALTA Form 28.2–Encroachments – Boundaries and Easements – Described Improvements

ALTA Form 28.3–Encroachments – Boundaries and Easements – Described Improvements and Land Under Development

ALTA Form 29–Interest Rate Swap – Direct Obligation

ALTA Form 29.1–Interest Rate Swap – Additional Interest

ALTA Form 29.2–Interest Rate Swap – Direct Obligation – Defined Amount

ALTA Form 29.3–Interest Rate Swap – Additional Interest – Defined Amount

ALTA Form 30–One to Four Family Shared Appreciation Mortgage

ALTA Form 30.1–Commercial Participation Interest

ALTA Form 31–Severable Improvements

ALTA Form 32–Construction Loan

ALTA Form 32.1–Construction Loan – Direct Payment– Loan Policy

ALTA Form 32.2–Construction Loan – Insured’s Direct Payment– Loan Policy

ALTA Form 33–Disbursement

ALTA Form 34–Identified Risk Coverage

ALTA Form 35–Minerals and Other Subsurface Substances – Buildings

ALTA Form 35.1–Minerals and Other Subsurface Substances – Improvements

ALTA Form 35.2–Minerals and Other Subsurface Substances – Described Improvements

ALTA Form 35.3–Minerals and Other Subsurface Substances – Land Under Development

ALTA Form 36–Energy Project – Leasehold/Easement – Owner’s Policy

ALTA Form 36.1–Energy Project – Leasehold/Easement – Loan Policy

ALTA Form 36.2–Energy Project – Leasehold Owner’s Policy

ALTA Form 36.3–Energy Project – Leasehold – Loan Policy

ALTA Form 36.4–Energy Project – Covenants, Conditions and Restrictions – Land Under Development – Owner’s Policy

ALTA Form 36.5–Energy Project – Covenants, Conditions and Restrictions – Land Under Development – Loan Policy

ALTA Form 36.6–Energy Project – Encroachments

ALTA Form 36.7–Energy Project – Fee Estate – Owner’s Policy

ALTA Form 36.7–Energy Project – Fee Estate – Loan Policy

ALTA Form 37 – Assignment of Rents or Leases

ALTA Form 38 – Mortgage Tax

ALTA Form 39 – Policy Authentication

ALTA Form 40 – Tax Credit – Owner’s Policy

ALTA Form 40.1 – Tax Credit – Defined Amount – Owner’s Policy

ALTA Form 41 – Water – Buildings

ALTA Form 41.1 – Water – Improvements

ALTA Form 41.2 – Water – Described Improvements

ALTA Form 41.3 – Water – Land Under Development

ALTA Form 42 – Commercial Lender Group

ALTA Form 43 – Anti-Taint

ALTA Form 44 – Insured Mortgage Recording

ALTA Form 45 –Pari Passu Mortgage – Loan Policy

ALTA Form 46–Option