A brief overview of ALTA Title Insurance Endorsements

1 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAFA brief overview of ALTA Title Insurance EndorsementsACKNOWLEDGMENTSS pecial thanks are due to Paul R. Liszewski, Vice President and Senior National Underwriting Counsel in the Chicago, Illinois office of First American Title s National Commercial Services division. Paul s extraordinary vision and passion for this publication as its author and editor-in-chief over many years are what have established it as a go-to resource for Title professionals, customers, and even scholars. For all of the dedication he has given to it, this guide is in turn dedicated to publications of the American Land Title Association , including ALTA policy forms, Endorsements and related documents, are copyrighted and are reprinted herein by specific permission from: American Land Title Association (ALTA )1800 M Street, , Suite 300 SWashington, 20036-5828 Phone: : content of this Endorsement Guide is for information only.

2 It should not be relied upon for legal advice or any other purpose. The Endorsements presented herein are subject to underwriting and other requirements of First American, and may not be available in all states or for all transactions. Please contact your local First American representative with any questions you may American Title Insurance Company, and the operating divisions thereof, make no express or implied warranty respecting the information presented and assume no responsibility for errors or omissions. First American, the eagle logo, First American Title , and are registered trademarks or trademarks of First American Financial Corporation and/or its affiliates. 2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: q basic coverages provided by the standard American Land Title Association ( ALTA ) Title Insurance policies address many common Title Insurance needs. Often, however, certain insureds or certain aspects of a specific real estate transaction raise special concerns.

3 By requesting an endorsement to the Title Insurance policy, an insured owner or lender may be able to receive Insurance against the risk of a particular matter that is beyond the coverage of the standard policy the years, various Endorsements have been drafted in an effort to address many common concerns. ALTA has standardized and adopted many endorsement forms that are available for use generally by the Title Insurance industry. This guide is intended to serve as an introduction for our customers to the most commonly-requested ALTA Title Insurance Endorsements in today s market. It contains the text of each such endorsement as adopted by ALTA, and is followed by a brief explanation and commentary. You can also speak with your underwriter about other non-ALTA Endorsements that may be available to meet your needs and you review this guide, please keep in mind that due to matters such as governmental regulatory standards and local practices First American s ability to approve and issue any of the Endorsements contained in this guide may vary from state to state and, in some cases, even by locality.

4 In addition, particular transactions may present special risks that might require additional clearance or requirements other than those that are contemplated herein. Also, remember that this guide by attempting to describe various coverages using non-legal terminology whenever possible is not and cannot be a determinative explanation or interpretation of the coverages provided. Nor can this guide be an authoritative compilation of the underwriting requirements for issuing any particular endorsement; underwriting requirements frequently vary by transaction, and your underwriter can help explain the appropriate issuing criteria for Endorsements in any particular transaction. It s also important to remember that an endorsement becomes part of the Title Insurance policy, and the coverage provided by an endorsement must be read together with the other terms and provisions contained in the policy jacket. In short, please remember that the language of each endorsement must speak for itself, and each transaction must be underwritten on its own facts.

5 First American Title thanks you for your interest and welcomes the opportunity to serve your real estate needs. If you have any questions about the material in this guide, or about our real estate services, please contact your local First American Title representative for more information. Thank You!For additional copies of this guide, please contact your local First American Title sales OF CONTENTSALTA Endorsement 1-06 (Street Assessments) .. 1(ALTA Endorsement 2-06 has been withdrawn)ALTA Endorsement 3-06 (Zoning-Unimproved Land) .. 3 ALTA Endorsement (Zoning-Completed Structure) .. 5 ALTA Endorsement (Zoning-Land Under Development) .. 7 ALTA Endorsement 4-06 (Condominium-Assessments-Priority) .. 11 ALTA Endorsement (Condominium-Current Assessments) .. 13 ALTA Endorsement 5-06 (Planned Unit Development-Assessments Priority) .. 15 ALTA Endorsement (Planned Unit Development-Current Assessments).

6 17 ALTA Endorsement 6-06 (Variable Rate Mortgage) .. 19 ALTA Endorsement (Variable Rate Mortgage-Negative Amortization) .. 21 ALTA Endorsement 7-06 (Manufactured Housing Unit) .. 23 ALTA Endorsement (Manufactured Housing-Conversion; Loan) ..25 ALTA Endorsement (Manufactured Housing-Conversion; Owner) .. 27 ALTA Endorsement (Environmental Protection Lien) .. 29 ALTA Endorsement (Commercial Environmental Protection Lien) .. 31 ALTA Endorsement 9-06 (Restrictions, Encroachments, Minerals-Loan Policy) .. 33 ALTA Endorsement (Covenants, Conditions and Restrictions-Unimproved Land-Owner s Policy) .. 37 ALTA Endorsement (Covenants, Conditions and Restrictions -Improved Land -Owner s Policy) .. 39 ALTA Endorsement (Covenants, Conditions and Restrictions-Loan Policy) .. 41(ALTA Endorsements and have been withdrawn)ALTA Endorsement (Private Rights Loan Policy).

7 43 ALTA Endorsement (Private Rights-Current Assessments-Loan Policy) .. 45 ALTA Endorsement (Restrictions, Encroachments, Minerals-Loan Policy) .. 47 ALTA Endorsement (Covenants, Conditions and Restrictions - Land Under Development - Owner s Policy) .. 51 ALTA Endorsement (Private Rights - Owner s Policy) .. 55 ALTA Endorsement (Restrictions, Encroachments, Minerals-Current Violations-Loan Policy) .. 57 ALTA Endorsement 10-06 (Assignment) .. 61 ALTA Endorsement (Assignment and Date Down) .. 63 ALTA Endorsement 11-06 (Mortgage Modification) .. 67 ALTA Endorsement (Mortgage Modification with Subordination) .. 69 ALTA Endorsement (Mortgage Modification with Additional Amount of Insurance .. 71 ALTA Endorsement 12-06 (Aggregation - Loan Policy) .. 75 ALTA Endorsement (Aggregation - State Limits - Loan Policy) .. 79 ALTA Endorsement 13-06 (Leasehold - Owner s) .. 83 ALTA Endorsement (Leasehold - Loan).)

8 87 ALTA Endorsement 14-06 (Future Advance Priority) .. 91 ALTA Endorsement (Future Advance - Knowledge) .. 95 ALTA Endorsement (Future Advance - Letter of Credit) .. 99 ALTA Endorsement (Future Advance Reverse Mortgage) .. 103 ALTA Endorsement 15-06 (Non-imputation - Full Equity Transfer) .. 107 ALTA Endorsement (Non-imputation - Additional Insured) .. 109 ALTA Endorsement (Non-imputation - Partial Equity Transfer) .. 111 ALTA Endorsement 16-06 (Mezzanine Financing) .. 113 ALTA Endorsement 17-06 (Access and Entry) .. 117 ALTA Endorsement (Indirect Access and Entry) .. 119 ALTA Endorsement (Utility Access) .. 121 ALTA Endorsement 18-06 (Single Tax Parcel) .. 123 ALTA Endorsement (Multiple Tax Parcel) .. 125 ALTA Endorsement (Multiple Tax Parcel) .. 127 ALTA Endorsement 19-06 (Contiguity - Multiple Parcels) .. 129 ALTA Endorsement (Contiguity - Single Parcel) .. 131 ALTA Endorsement (Contiguity - Specified Parcels).

9 133 ALTA Endorsement 20-06 (First Loss - Multiple Parcel Transactions) .. 135(ALTA Endorsement 21 has been withdrawn)ALTA Endorsement 22-06 (Location) .. 137 ALTA Endorsement (Location and Map) .. 139 ALTA Endorsement 23-06 (Coinsurance - Single Policy) .. 141 ALTA Endorsement (Coinsurance - Multiple Policies) .. 145 ALTA Endorsement 24-06 (Doing Business) .. 149 ALTA Endorsement 25-06 (Same as Survey) .. 151 ALTA Endorsement (Same as Portion of Survey) .. 153 ALTA Endorsement 26-06 (Subdivision) .. 155 ALTA Endorsement 27-06 (Usury) .. 157 ALTA Endorsement 28-06 (Easement - Damage or Enforced Removal) .. 159 ALTA Endorsement (Encroachments - Boundaries and Easements) .. 161 ALTA Endorsement (Encroachments - Boundaries and Easements - Described Improvements) .. 163 ALTA Endorsement (Encroachments - Boundaries and Easements - Land Under Development) .. 165 ALTA Endorsement 29-06 (Interest Rate Swap Endorsement - Direct Obligation).

10 169 ALTA Endorsement (Interest Rate Swap Endorsement - Additional Interest) .. 173 ALTA Endorsement (Interest Rate Swap Endorsement - Direct Obligation - Defined Amount) .. 177 ALTA Endorsement (Interest Rate Swap Endorsement - Additional Interest - Defined Amount) .. 181 ALTA Endorsement 30-06 (Shared Appreciation Mortgage) .. 185 ALTA Endorsement (Commercial Participation Interest) .. 189 ALTA Endorsement 31-06 (Severable Improvements) .. 193 ALTA Endorsement 32-06 (Construction Loan - Loss of Priority) .. 195 ALTA Endorsement (Construction Loan - Loss of Priority - Direct Payment) .. 199 ALTA Endorsement (Construction Loan - Loss of Priority - Insured s Direct Payment) .. 203 ALTA Endorsement 33-06 (Disbursement) .. 207 ALTA Endorsement 34-06 (Identified Risk Coverage) .. 209 ALTA Endorsement 35-06 (Minerals and Other Subsurface Substances - Buildings) .. 211 ALTA Endorsement (Minerals and Other Subsurface Substances - Improvements).