In our ongoing effort to explain the various ALTA endorsements available – in this article, we are going to discuss the covenants, conditions & restrictions endorsements for both the lender’s and the owner’s title insurance policies.
Owner’s Policy
This endorsement protects the Insured owner against financial loss caused by: Violations on the Land, as of the date of policy, of an enforceable Covenant, or notice of a violation, recorded in the Public Records at Date of Policy, of an enforceable Covenant relating to environmental protection, to the extent of the violation of the Covenant. The ALTA 9.2 also includes coverage for forced removal of an Improvement as a result of a violation, at Date of Policy, of a building setback line shown on a plat of subdivision recorded or filed in the Public Records. The ALTA 9.8 includes coverage for forced removal of future Improvements, if built in compliance with an identified set of plans and specifications.
Lender’s Policy
This endorsement protects the insured Lender against financial loss in the event that a. Violations of existing covenants divest, subordinate, or extinguish the lien of the Insured Mortgage; cause the invalidity or unenforceability of the Insured Mortgage; or cause a loss of Insured’s Title acquired in satisfaction or partial satisfaction of the Indebtedness. b. There are no present violations of any enforceable covenants affecting the land. c. Forced removal of Improvements, as defined in the endorsement, because of a violation of a of a building setback line shown on a plat of subdivision.
Commercial Title Experts in the Twin Cities
Looking for help with your commercial transaction? You’ve come to the right place! At Commercial Partners Title, we specialize in the facilitation of commercial real estate transactions, both in Minnesota and across the country. We can underwrite a title insurance policy that fits the unique needs of your specific property. Contact us today to learn more about the processes we employ and how we can assist you with your next commercial real estate deal.