Page 34 - ALTA Endorsements Guide

ALTA ENDORSEMENT RETURN TO TABLE OF CONTENTS

ALTA 7.1

Manufactured Housing - Conversion - Loan Policy

The ALTA 7.1 is applicable only for a Loan Policy. Like the ALTA 7, it insures that the manufactured
housing unit located on the property falls within the definition of Land insured under the policy. It
also provides coverage against loss or damage if a manufactured housing unit is not located on

the land and the owner of the land is not the owner of the manufactured housing unit. Coverage is
also provided to an Insured as to any lien which has attached to the manufactured housing unit as

personal property, including:

• a federal, state, or other governmental tax lien;

• a UCC security interest;
• a motor vehicle lien; or

• other personal property lien.

In addition, the ALTA 7.1 endorsement specifically provides a lender with coverage if “the lien of the

Insured Mortgage is not enforceable against the Title in a single foreclosure procedure.”

This additional lender coverage contained in the ALTA 7.1 is important. The definition of Land in
section 1.i. of the Conditions of the 2006 Loan Policy includes the Title described in Schedule A,
and affixed improvements that by law constitute real property. Note: In the 2021 Loan policy, the

definition of Land is now in section 1.n and the reference to the term “affixed” is deleted. The ALTA 7.1
provides coverage to a lender who commences a foreclosure proceeding against the Title and the

manufactured housing unit in a single land foreclosure proceeding only to learn the manufactured
housing unit must be foreclosed in a separate proceeding.

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