Page 57 - ALTA Endorsements Guide

ALTA ENDORSEMENT RETURN TO TABLE OF CONTENTS

Endorsement 9.7
Restrictions, Encroachments, and Minerals — Land Under Development — Loan Policy
[2021 v. 01.00 (08-01-2025)]

ALTA 9.7 ENDORSEMENT — RESTRICTIONS, ENCROACHMENTS, AND MINERALS — LAND UNDER DEVELOPMENT — LOAN POLICY
Attached to Policy No. __________
Issued by
OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY

SAMPLE
1. For purposes of this endorsement only, the following terms mean:
a. “Covenant”: A covenant, condition, limitation, or restriction in a document or instrument in effect at Date of Policy.
b. “Future Improvement”: 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”: 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”: The survey, site and elevation plans, or other depictions or drawings prepared by [Drafting Instruction: insert name of architect or engineer]
dated ____, last revised ________, designated as [Drafting Instruction: insert name of project or project number] consisting of ___ sheets.

2. 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.

3. The Company insures against loss or damage sustained by the Insured by reason of:
a. A violation of a Covenant that:
i. divests, subordinates, or extinguishes the lien of the Insured Mortgage;
ii. 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:
a. 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
ii. 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.;
b. Damage to an Improvement located on the Land at Date of Policy or a Future Improvement:
i. that encroaches onto that portion of the Land subject to an easement excepted in Schedule B, which damage results from the exercise of the right to
maintain the easement for the purpose for which it was granted or reserved; or
ii. resulting from the future exercise of a right to use the surface of the Land for the extraction or development of minerals or any other subsurface
substances excepted from the description of the Land or excepted in Schedule B.

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