The minimum premium for this endorsement is $25.00.
This Endorsement may be used with either an Owner’s Policy or Loan Policy and contains FOUR (4) forms of affirmative coverage, as follows:
1) Paragraph 1 insures against existing violations of any restrictive covenants referred to in Schedule B that restrict the use of the land and that such restrictive covenants do not contain any provisions which will cause a forfeiture or reversion of title. The term “restrictive covenants” as used in this affirmative coverage does not include any covenant, condition or restriction (i) relating to obligations of any type to perform maintenance, repair or remediation on the land, or (ii) pertaining to environmental protection of any kind or nature , including hazardous or toxic matters, conditions or substances, except to the extent that a notice of a violation or alleged
violation affecting the land has been recorded in the public records at the date of the policy and is not excepted in Schedule B. Therefore, if the survey reflects any violation of the restrictive covenants, underwriting approval is required in accordance with the underwriting guidelines applicable to: (i) if the endorsement is being issued on an Owner’s Policy, the guidelines regarding encroachments and setback violations under the ALTA 9.2-06 Endorsement; or (ii) if the endorsement is being issued on a Loan Policy, the guidelines regarding encroachments and setback violations under the ALTA 9-06 Endorsement.
2) Paragraph 2 insures that there are no unpaid charges or assessments due and owing to any association as of the date of the policy. Therefore, an estoppel letter from each association having assessment rights against the land confirming that all assessments are paid in full is required to provide this affirmative coverage.
3) Paragraph 3 insures against the forced removal of any existing structure existing on the land at the date of the policy (other than a boundary wall or fence) because it encroaches onto adjoining land or onto any easements. Therefore, if the survey reflects an encroachment of any structure onto adjoining land, underwriting approval is required in accordance with the underwriting guidelines
applicable to: (i) if the endorsement is being issued on an Owner’s Policy, the guidelines regarding encroachments onto adjoining land under the ALTA 9.2-06 Endorsement; or (ii) if the endorsement is being issued on a Loan Policy, the guidelines regarding encroachments onto adjoining land under the ALTA 9- 06 Endorsement.
4) Paragraph 4 insures against the failure of title resulting from a right of first refusal to purchase the land which was exercised or could have been exercised at the date of policy. Therefore, if the restrictive covenants require consent by an association to the purchase of the land or a right of first refusal, evidence of compliance with such requirement must be obtained and recorded in order to insure title and provide this affirmative coverage.
