Page 50 - 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

AGGREGATION (“TIE IN”) ENDORSEMENT SERIES
ALTA ENDORSEMENTS 12, 12.1

I. Purpose:

The ALTA 12 series of endorsements is often requested in multi-state transactions
when mortgages on different properties secure the same indebtedness. The
endorsement ties together two or more policies and provides that the amount of
insurance under the Loan Policy, to which the endorsement is attached, shall be the
aggregate of the amount of insurance under each Loan Policy identified in the
Any payments made by the title insurer under the policy, as
endorsed, reduces the aggregate amount of coverage available under all of the
policies listed in the This endorsement is also referred to as a “tie in”
endorsement.

The ALTA 12 series of endorsements is issued with the Loan Policy.

II. Coverage Provided:

a. ALTA 12 (Aggregation – Loan Policy): The ALTA 12 is intended for use when
policies insuring mortgages in more than one state are being aggregated for
liability purposes in the amount of the combined sum of all mortgages. The ALTA
12 is the appropriate endorsement for this purpose only if the state single risk
limit for all states for which policies are issued is equal or more than the
combined principal amount of all mortgages as aggregated.

b. ALTA 12.1 (Aggregation – State Limits – Loan Policy): The ALTA 12.1 is intended
for use in those multi-state transactions when aggregation coverage is
requested, but the total principal amount secured by all mortgages insured
under the policies to be aggregated exceeds the single risk limit (that is the net
retained liability permitted by state law of a title insurer for a single risk on
property) in one or more of the states in which the properties insured under the
aggregated policies are located.

III. Title Tips:

a. Two or more loan policies must be issued by the Company.

b. The loan amount must be secured by mortgages on two or more properties. The
Insured Mortgages must each secure the entire indebtedness, or the sum of the
amounts secured by all of the Insured Mortgages must equal the entire
indebtedness.

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