Page 35 - ALTA Endorsements Guide

A L T A E N D O R S E M E N T

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ALTA ENDORSEMENT 9.7-06
RESTRICTIONS, ENCROACHMENTS, MINERALS – LAND UNDER DEVELOPMENT – LOAN POLICY
Adopted (4-2-12)

1. The insurance provided by this endorsement is subject to the exclusions in Section 5 of this
endorsement; and the Exclusions from Coverage, the Exceptions from Coverage contained in
Schedule B, and the Conditions in the policy.

2. For purposes of this endorsement only:
a. “Covenant” means a covenant, condition, limitation or restriction in a document or instrument in
effect at Date of Policy.
b. “Future Improvement” means a building, structure, road, walkway, driveway, curb, lawn,
shrubbery or trees to be constructed on or affixed to the Land in the locations according to the
Plans and that by law will constitute real property.

c. “Improvement” means an improvement, including any lawn, shrubbery, or trees, affixed to either
the Land or adjoining land at Date of Policy that by law constitutes real property.
d. “Plans” means the survey, site and elevation plans or other depictions or drawings prepared by
(insert name of architect or engineer) dated ____, last revised ________, designated as (insert
name of project or project number) consisting of ___ sheets.
3. The Company insures against loss or damage sustained by the Insured by reason of:
b. A violation of a Covenant that:

i. divests, subordinates, or extinguishes the lien of the Insured Mortgage,
iv. results in the invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage,
or

iii. causes a loss of the Insured’s Title acquired in satisfaction or partial satisfaction of the
Indebtedness;
b. A violation of an enforceable Covenant by an Improvement on the Land at Date of Policy or by a
Future Improvement, unless an exception in Schedule B of the policy identifies the violation;
c. Enforced removal of an Improvement located on the Land or of a Future Improvement as a result
of a violation of a building setback line shown on a plat of subdivision recorded or filed in the
Public Records at Date of Policy, unless an exception in Schedule B of the policy identifies the
violation; or

d. A notice of a violation, recorded in the Public Records at Date of Policy, of an enforceable
Covenant relating to environmental protection describing any part of the Land and referring to that
Covenant, but only to the extent of the violation of the Covenant referred to in that notice, unless
an exception in Schedule B of the policy identifies the notice of the violation.
4. The Company insures against loss or damage sustained by reason of:

b. An encroachment of:
i. an Improvement located on the Land at Date of Policy or a Future Improvement, onto
adjoining land or onto that portion of the Land subject to an easement; or

iii. an Improvement located on adjoining land onto the Land at Date of Policy,
unless an exception in Schedule B of the policy identifies the encroachment otherwise insured
against in Sections 4.a.i. or 4.a.ii.;

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