Page 17 - Guide to the Most Requested Commercial Title Insurance Endorsements eBook

ALTA Table of Contents Quick Reference Index

ENDORSEMENT 1 2 3 1 2 3 4 5 6

ENVIRONMENTAL PROTECTION LIEN ENDORSEMENT SERIES
ALTA ENDORSEMENTS 8.1, 8.2-06

I. Purpose:

These endorsements insure a lender against loss of priority due to federal or
state environmental protection liens filed in the public records and/or
unrecorded environmental protection super-priority liens created by state
statutory provisions.

The ALTA 8.1 endorsement may be issued with loan policies where the
insured land is used for residential purposes. The ALTA 8.2-06 endorsement
may be issued with both owner’s and loan policies in connection with
commercial transactions.

II. Coverage Provided:

a. ALTA 8.1 (Environmental Protection Lien): Insures a lender against loss of
priority due to (i) a federal or state environmental protection lien filed in
the public records as of the Date of Policy or filed with the United States
District Court in which the insured land is located, and (ii) an
environmental lien provided for by a state statute (providing super lien
priority) in effect on the Date of Policy, but excepting those statutes listed
in the endorsement.

b. ALTA 8.2-06 (Commercial Environmental Protection Lien): Insures that
there have been no environmental protection liens recorded in the public
records within the scope of the present search, and in the records of the
United States District Court for the district in which the land is located.
Unlike the ALTA 8.1, this endorsement is strictly limited to matters of
record and does not provide coverage for any environmental liens created
by state statutes that are not recorded.

III. Title Tips:

a. In paragraph (b) of the ALTA 8.1, consideration will be given to any state
statutory provisions creating a super priority lien or providing for
recording of liens in records other than those presently searched for
purposes of issuing policies.

b. Residential use for issuance of the ALTA 8.1 includes multi-family
apartment projects and similar uses.

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