Page 20 - ALTA Endorsements Guide

ALTA ENDORSEMENT RETURN TO TABLE OF CONTENTS

ALTA 4

Condominium - Assessments Priority

This endorsement is issued on residential or commercial property that qualifies as a condominium
under state condominium statutes. The ALTA 4 insures a lender securing its loan with a mortgage
lien on a condominium unit that (i) the unit is part of the condominium; (ii) the condominium

documents comply with state requirements; (iii) there are no violations of restrictive covenants, and
any violations of the covenants will not cause a forfeiture or reversion of title; (iv) the mortgage has

priority over liens for charges and assessments; (v) the unit will be assessed for real property taxes
as a separate parcel; (vi) there is no obligation to remove any improvements due to encroachments;
and (vii) there has been no prior Right of First Refusal (“ROFR”) which could defeat the title.

Additionally, section 4 in this endorsement provides specific coverage to the lender against any
loss or damage arising from the priority of any charges or assessments provided for in either the

condominium statutes or the condominium documents having priority, at Date of Policy, over the
Insured Mortgage.

The ALTA 4 should only be issued when state law provides that the Insured Mortgage has priority
over all assessments and charges at date of policy and in the future. The endorsement is available

for loan policies only.

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