Every title insurance policy is different. There is no “one-size-fits-all” policy that can be used for every transaction. You need to take into account the client’s unique needs for their property. That’s where endorsements come in. Essentially, an endorsement is a tool that a title insurance company can use to customize a basic title insurance policy to fit the needs of a specific client. There are a wide variety of endorsements that can be used in a transaction depending on the location of the property, the client’s needs, and other factors. In this article, we are going to talk about some of the most commonly used American Land Title Association (ALTA) endorsements.
Residential ALTA Endorsements
The first set of ALTA endorsements primarily address residential risks. These endorsements protect residential lenders in the secondary mortgage market. Some of these endorsements include:
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ALTA 1 – Street Assessments
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ALTA 2 – Truth in Lending
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ALTA 4 & 4.1 – Condominium
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ALTA 5 & 5.1 – Planned Unit Development
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ALTA 6, 6.1 & 6.2 – Variable Rate Mortgage
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ALTA 7 – Manufactured Housing
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ALTA 8.1 – Environmental Protection Lien
Commercial ALTA Endorsements
The next batch of ALTA endorsements relate primarily to commercial real estate transactions – rather than residential transactions. Some of these endorsements include:
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ALTA 3 & 3.1 – Zoning
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ALTA 9, 9.1 & 9.2 – Comprehensive
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ALTA 10 – Mortgage Assignment
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ALTA 10.1 – Mortgage Assignment and Date Down
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ALTA 11 – Mortgage Modification
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ALTA 12 – Aggregation or Tie-In
Additional Commercial Transaction ALTA Endorsements
From 2001 to 2004, additional endorsements were added that focus on commercial transactions, including:
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ALTA 13 & 13.1 – Leasehold
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ALTA 14, 14.1 & 14.2 – Future Advance
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ALTA 15, 15.1, and 15.2- Non-Imputation
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ALTA 16 – Mezzanine Financing
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ALTA 17 & 17.1 – Access and Entry
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ALTA 18 & 18.1 – Tax Parcel
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ALTA 19 & 19.1 – Contiguity
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ALTA 20 – First Loss
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ALTA 21 – Creditors Rights
Working with a Title Company
Before requesting any endorsements, it’s essential to do a complete evaluation of your transaction to determine which endorsements are needed. At Commercial Partners Title, we work with each client and request the necessary endorsements for each individual transaction.