Eight New ALTA Endorsements, Two Policy Forms Revisions Published as Final
|December 10, 2013|
The forms approved by the ALTA Board of Governors on Oct. 10 have passed through the comment period and have been published in final at the ALTA website.
Users should access the final versions of these forms, which include any changes applied pursuant to the comment period. Redlines have also been posted, where applicable.
These forms have a publication date of Dec. 2. Any prior version(s) of revised forms that may exist are considered decertified effective Dec. 2. As always, the forms have been developed by the ALTA Forms Committee and approved by the ALTA Board.
An opportunity to review and comment is extended to ALTA members, policy forms licensees, and industry customers before final publication. The forms, in general, are made available for customer convenience. The parties are free in each case to agree to different terms, and the use of these forms is voluntary, unless required by law.
Each form bears ALTA’s copyright indicia and use of these copyrighted forms is restricted to ALTA licensees and ALTA members in good standing as of the date of use. Permission to reprint may be requested by contacting firstname.lastname@example.org.
ALTA Endorsement 11.2-06 (Mortgage Modification with Additional Amount of Insurance): New Form
This endorsement may be issued to increase the Amount of Insurance and to insure the priority of the Insured Mortgage if a Modification is executed. ALTA Water Endorsement Series: 4 New FormsThese Endorsements are designed for issuance on commercial or residential property. Each of the Water Endorsements is similar to the recently adopted ALTA 35 Series “Minerals and Other Subsurface Substances” Endorsements. Those endorsements insure against loss or damage by reason of the enforced removal or alteration of any Improvement because of the future exercise of any right existing at Date of Policy to use the surface of the Land for extraction or development of minerals or other subsurface substances excepted from the description or excepted in Schedule B. Each of the Water Endorsements provides similar insurance with respect to extraction or development of water and contains an exclusion 4 that includes loss or damage resulting from contamination, explosion, fire, vibration, fracturing, earthquake or subsidence, or negligence by a person or Entity exercising a right to extract or develop water.
ALTA Endorsement 42-06 (Commercial Lender Group): New Form
This endorsement insures against invalidity, unenforceability or loss of priority of the lien of the Insured Mortgage because of transfers after Date of Policy of portions of the Indebtedness by the Participants (members of the Lender Group owning portions of the Indebtedness).
ALTA Endorsement 43-06 (Anti-Taint): New Form
This endorsement insures against loss of priority of the lien of the Insured Mortgage as security for the amount of Indebtedness advanced as the Term Loan (as defined in the endorsement) resulting from reductions and subsequent increases in the principal amount of the Indebtedness payable as the Revolving Credit Loan (as defined in the endorsement).
ALTA Endorsement 44-06 (Insured Mortgage Recording): New Form
This endorsement may be issued after the Loan Policy if the Loan Policy does not contain recording information regarding the Insured Mortgage in order to insure that the Insured Mortgage was recorded as set forth in Section 3 of the endorsement (reciting the recording information). This endorsement would provide another tool for the lender where the Loan Policy is issued at settlement.
ALTA Expanded Coverage Residential Loan Policy: Revised Form
The exclusions were revised to include contamination, explosion, fire, flooding, vibration, fracturing, earthquake or subsidence, and negligence by a person or Entity exercising a right to extract or develop minerals, water, or other substances (as to which insurance is provided in the Covered Risks). During the comment period, a reference to “ALTA Form 9 to.3-06 (Restrictions, Encroachments, Minerals)” was corrected to read “ALTA Form 9-06 (Restrictions, Encroachments, Minerals)” in paragraph 28(f) of the Covered Risks.
ALTA Homeowner's Policy: Revised Form
The exclusions were revised to include contamination, explosion, fire, flooding, vibration, fracturing, earthquake or subsidence, and negligence by a person or entity exercising a right to extract or develop minerals, water, or other substances (as to which insurance is provided in the Covered Risks).
If you have comments or concerns, please email Kelly Romeo, ALTA's staff liaison for the Forms Committee.