Page 31 - 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

e. ALTA 9.7-06 (Restrictions, Encroachments, Minerals – Land Under Development –
Loan Policy): Provides coverage similar to those provided by the ALTA 9 but is
modified to provide coverage for “Future Improvements” based upon “Plans”, as
defined in the endorsement. This endorsement is typically requested by a lender for
new construction loans when the lender requires the coverages provided under the
ALTA 9 and, wants certain assurances that the coverages provided would extend to
the planned improvements on the property.

f. ALTA 9.10-06 (Restrictions, Encroachments, Minerals – Current Violations –Loan
Policy): Insures essentially the same matters as the ALTA 9-06 endorsement, except
the coverage in Section 3 is only for violations existing at Date of Policy.

III. Title Tips:

a. In most circumstances, an ALTA/NSPS survey will be required to issue the ALTA 9-06,
ALTA 9.3-06, ALTA 9.7-06 and ALTA 9.10-06 endorsements.

b. In the event a matter otherwise covered by the endorsement is to be excepted from
coverage (i.e., to be the subject of “an exception in Schedule B of the policy”
identifying the violation), the exception must be specific, descriptive, and precise. A
blanket exception with a reference to a document will not suffice.

c. Delivery of the building and site improvement plans for the contemplated
improvements will be required to issue the ALTA 9.8-06 endorsement and the blanks
in the definition of “Plans” must be completed based on the building and site
improvements plans provided by the insured.

d. The ALTA 9-06, ALTA 9.7-06 and the ALTA 9.10-06 endorsements provide coverage
for damage to improvements located on the land resulting from the future exercise
of a right to use the surface of the land for the extraction or development of
minerals. To give this coverage, a separate mineral search back to patent may be
required.

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