What Is An EPA Endorsement Title Insurance?

The ALTA Environmental Protection Lien (Endorsement 8.1 and 8.1-06) protects the insured from any damage caused by environmental liens that aren’t stated as exceptions to the title policy. While many people who want to learn more about title endorsements refer to them as “EPA endorsements,” this terminology might be deceptive because the liens that the insured is protected from aren’t necessarily issued by the Environmental Protection Agency.

What Is A Survey Endorsement?

This form of endorsement, also known as “Survey Deletion Coverage,” shields the insured from errors made by their residential property’s surveyor by replacing particular language in their title policy that would limit coverage with the phrase “shortages in area.”

What is environmental endorsement?

The 8.1 (Environmental Protection) Endorsement was designed by ALTA to give affirmative insurance that there are no liens on the insured property for the removal of hazardous wastes. Lenders on property used for residential reasons only are covered under this policy.

What’s an environmental protection Lien?

Endorsements are used to increase or amend the coverage of a real estate title insurance policy. Title firms offer a variety of title insurance plans to real estate owners, such as regular coverage, ALTA (American Land Title Association) extended coverage, ALTA residential, and ALTA homeowner’s coverage. The ALTA policies, as well as other types of title insurance policies, are expected to offer appropriate coverage for most real estate transactions, without the need for endorsements. However, if the transfer is not straightforward, or if there are concerns unique to the transaction, the policy coverage may need to be enhanced to protect the homeowner, seller, or lender involved in the transaction. Endorsements can change any portion of the policy, but they’re most commonly used to extend or expand the title policy for more comprehensive coverage to address a specific title issue affecting or possibly impacting the real estate.

The following are some of the most regularly utilized endorsements in real estate transactions by both purchasers and lenders:

Environmental Protection Lien: This endorsement does not address environmental protection in any way.

Rather, this endorsement ensures that no document in the public records affecting the real property contains an environmental lien or a notice of enforcement of a lien.

The Environmental Protection Lien Endorsement also assures that no Federal Super Fund lien statutes exist in the state where the property is located, which could influence the priority of the lien for the deed of trust or insured mortgage, from the lender’s perspective.

Assessments: This endorsement is intended to be used in conjunction with the ALTA Lenders Policy to protect the insured lender from loss caused by assessments for items such as street improvements that have priority over the lien of the deed of trust or insured mortgage and are either under construction or completed as of the endorsement date.

This endorsement is meant for use with the ALTA Owners Policy and assures the title policy holder that the land is the same as that shown on the survey plat attached to the policy.

Federal Truth in Lending: Under the Federal Truth in Lending Act or the Consumer Credit Protection Act, this endorsement insures a lender for a loss resulting from a judicial ruling terminating the lien of the insured mortgage (deed of trust).

Unimproved Land Zoning: This endorsement covers specific zoning issues that affect unimproved land. The endorsement describes the property’s zoning classification as well as the approved uses. To ascertain the specific zone and permissible uses of the real property covered by the title policy, an analysis of the appropriate zoning regulations and amendments is required.

Zoning: Improved Land: Similar to the zoning endorsement mentioned above for unimproved land, this endorsement outlines the zoning classification and approved uses for improved land.

However, this endorsement also covers loss resulting from a court order prohibiting the insured from using the property or compelling the removal or alteration of a structure or improvement on the property due to certain zoning violations, such as floor space or setback requirements, as defined by applicable law or regulation.

This endorsement is only available on already upgraded property where a determination can be made about the property’s zoning classification, permissible uses, and any zoning restrictions on building and building site size.

This endorsement assures the insured that (a) the stated street is a physically open public street, (b) the property in issue abuts the street, and (c) there is nothing preventing the property from accessing the street.

Endorsement on the fairway.

If the property owner is a limited liability company (LLC), the entity should obtain a Fairway endorsement when purchasing title insurance, which protects against any lapse in coverage caused by a change in the limited liability company’s membership or any resultant dissolution. The Fairway endorsement states that a title insurer will not deny coverage under a title policy issued to a limited liability company based on any of the following: (a) the admission, substitution, or withdrawal of any individual or entity as a member of the insured, (b) a change in any member’s interest in the capital or profits of the LLC, or (c) a change of a managing or non-managing member in the insured limited liability company, where the insured limited liability company’s business is

When a construction loan has previously been insured and the lender requires assurance from the title insurer that the foundations do not encroach on adjoining lands or violate existing covenants, conditions, and restrictions affecting the property, this endorsement is used with the ALTA lenders policy.

Following a physical examination of the property, the lender may receive an endorsement stating that (a) the foundations of the structure under construction on the subject property are within the property’s boundary lines, and (b) the location of the foundations does not violate the covenants, conditions, and restrictions listed in Schedule B of the title policy.

Condominiums: This endorsement ensures that (a) the condominium being insured qualifies as a condominium under applicable state statutes by its creating document, (b) there are no violations of the restrictive covenants that will result in a forfeiture of title, (c) liens for homeowners’ association assessments will not have priority over the lien evidenced by the deed of trust covering the property, and (d) there will be no loss or damage to the insured as a result of the insurable interest.

This endorsement can be issued if a check of the legislation, the condominium declarations map, and related documentation shows that the title company can make and deliver all of the mentioned assurances.

What is an endorsement on a property?

These are limitations that apply to a certain piece of property. A bond, injunction, mineral rights, or any other restriction imposed on a property might all be considered endorsements. The most typical property endorsements are bonds, interdicts, and mineral rights.

  • Owner — This is the name of the person who owns the endorsement. This is usually the bank, such as ABSA, Standard Bank, SA Home Loans, and so on, in the event of a Bond.
  • Amount / Price – The endorsement’s value. This is the registered bond amount in the case of a bond.

Note that this is the amount that has been registered, not necessarily the amount that has been owed. Aside from contacting the bank, there is no method to find out what the outstanding amount on a bond is.

  • Document — The document’s unique number. This is a one-of-a-kind number for each Deeds Office.
  • Microfilm Reference — See the Owners section of this article for further information on Microfilm Reference.

What is an Alta 5 endorsement?

This endorsement is intended for homeowners associations and planned unit developments, including “de minimus” planned unit developments (PUD). A fee simple interest in a townhouse, patio home, or single-family residence will be combined with an appurtenant easement over common elements or an undivided interest as co-tenant in common elements in a planned unit development.

Both ALTA Endorsement 5-06 and ALTA Endorsement 5.1-06 insure the Insured against loss or damage caused by: current violations of any restrictive covenants referred to in Schedule B that restrict the use of the Land, or the forfeiture or reversion of Title due to any provision in the restrictive covenants; the forced removal of any existing structure on the Land (other than a boundary wall or fence) because it encroaches onto adjoining lanes; the forfeiture or reversion

The coverage of ALTA Endorsement 5-06 and ALTA Endorsement 5.1-06 differs in terms of the precedence of the Insured Mortgage’s lien over the homeowners association’s lien for future unpaid charges and assessments.

Based on applicable state law and/or the homeowners association’s governing documents, the Insured Mortgage may or may not have priority over the homeowners association’s lien for future unpaid charges and assessments.

The homeowners association’s or PUD’s governing documents – usually a Declaration of Covenants, Conditions, and Restrictions (“CC&Rs”) – frequently provide for a lien against the dwelling for unpaid charges and assessments.

The priority of the homeowners association’s lien for unpaid charges and assessments in relation to other liens is determined by statutes or case law in several states.

According to some state statutes, the homeowners association’s lien for unpaid charges and assessments takes precedence over all other liens.

Some state laws make the homeowners association’s lien subject to other liens, such as real estate taxes or a first mortgage or deed of trust that encumbers the dwelling.

When a lender forecloses on a home, some state rules allow the association to get a priority payment from the profits of the foreclosure or trustee’s sale – for example, six months’ unpaid charges and assessments.

Where state law does not decide the priority of the homeowners association’s lien for unpaid charges and assessments, the CC&Rs may provide that the lien is superior to all other liens.

The CC&Rs may subordinate the association’s lien to another lien, such as a first mortgage or deed of trust encumbering the residence, or just to a purchase money mortgage or deed of trust, in some situations.

ALTA Endorsement 5-06 insures the Insured against any lien for charges and assessments in favor of any homeowners association that are provided for in any document at the Date of Policy and referred to in Schedule B having priority over the lien of the Insured Mortgage when issued with a Loan Policy.

The ALTA Endorsement 5-06 may only be used on policies in which the Insured Mortgage has precedence over the homeowners association’s lien for outstanding charges and assessments – including future unpaid charges and assessments – whether by statute, case law, or the CC&Rs (where not otherwise determined by state law).

ALTA Endorsement 5.1-06 covers any costs or assessments in favor of any homeowners association that are set forth in any document referred to in Schedule B, and are due and unpaid at the time of the policy’s effective date.

The ALTA Endorsement 5.1-06 can be applied to any policy as long as all homeowners association fees and assessments are current.

ALTA Endorsement 5.1-06 is the one we recommend.

ALTA Endorsement 5-06 and ALTA Endorsement 5.1-06 can be granted in conjunction with either an ALTA Loan Policy 2006 or an ALTA Owner’s Policy 2006.

What is the Alta 8.1 06?

This endorsement provides insurance only if the land is being used or will be utilized primarily for residential reasons.

The Company covers the Insured against loss or harm caused by the Insured Mortgage lien not having priority over other liens.

(a)any environmental protection lien that is recorded in those records established under state statutes at Date of Policy for the purpose of imparting constructive notice of matters relating to real property to purchasers for value and without Knowledge, or is filed in the records of the clerk of the United States district court for the district in which the Land is located, except as set forth in Schedule B; or (b)any environmental protection lien that is recorded in those records established under state statutes at Date of Policy for the purpose of imparting constructive notice of matters

(b)any environmental protection lien imposed by any state statute in existence at the time of the policy, with the exception of environmental protection liens imposed by the following state statutes:

As part of the policy, this endorsement is provided.

It does not I amend any of the policy’s terms and provisions, (ii) modify any prior endorsements, (iii) extend the Date of Policy, or (iv) increase the Amount of Insurance unless it specifically indicates so.

If a policy provision or a previous endorsement conflict with an express provision of this endorsement, this endorsement takes precedence.

Otherwise, this endorsement is bound by the policy’s terms and conditions, as well as any earlier endorsements.

What is a condominium endorsement clause?

Condo Endorsement or Letter of Non-Exclusion: What’s the Difference? What is a Condo Endorsement, and how does it work? A Condo Endorsement is a clause in your insurance that either excludes or limits coverage for condo or multi-family buildings.

Are title insurers liable for environmental cleanup costs?

The current “owner or operator,” as well as the “owner or operator” at the time the hazardous substances were released into the environment, are both responsible. 4 As a result, even a buyer of damaged land may be liable for contamination caused by a previous owner’s business.