Florida Shared Appreciation Endorsement

The minimum premium is $25.00 per endorsement on 1-4 family unit residential properties with a $100 maximum premium per endorsement; and on all other properties other than 1- 4 family unit residential properties the minimum premium for endorsements is $100.00 per endorsement with no maximum.

This endorsement is to be given for Loan Policies only. This endorsement insures the validity and enforceability as well as the priority of those provisions in the insured mortgage which provide for “shared appreciation interest”. Such interest is defined to mean  interest which is calculated pursuant to a formula contained in the insured mortgage which is payable out of the amount, if any, by which the insured land has appreciated in value from and after the date of the mortgage.

This endorsement excludes loss or damage resulting from (i) usury, (ii) any consumer credit protection or truth-in-lending law, or (iii) bankruptcy.

If the formula set forth in the mortgage provides that the shared appreciation is not interest for the making of the loan but rather a payment of some form of profit participation arrangement between the parties, the endorsement may not be issued.

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