Title 101: Making Sense of Title Insurance in Commercial Transactions

Table of Contents 3
Chicago Title – Financial Strength 4
Program Slides 5
What is Title Insurance? 7
What is the Purpose and Importance of Title Insurance? 8
Title Insurance vs. Casualty Insurance 8
Title Commitments 9
Types of ALTA Policies 12
The Concept of Pro Forma 13
Key Commerical Endorsements 14
Surveys 25
Reinsurance & Coinsurance 28
Working with Your Title Company 29
Resources 31
National vs. Local Transactions 34
Pricing Information 35
Q & A 36
Title Commitment Forms 37
DC 38
MD 52
VA 68
ALTA Owner’s Policy of Title Insurance (Sample) 83
ALTA Loan Policy of Title Insurance (Sample) 95
Commercial Endorsement Manual 108
Endorsement 1-06 - Street Assessments 119
Endorsement 3 - Zoning 121
Endorsement 3.1 - Zoning - Completed Structure 123
Endorsement 3.2 - Zoning - Land Under Development 125
Endorsement 3.3 - Zoning Completed Improvement - Non-Conforming Use 129
Endorsement 3.4 - Zoning - No Zoning Classification 133
Endorsement 4 - Condominium - Assessments Priority 137
Endorsement 4.1- Condominium - Current Assessments 141
Endorsement 5-06 - Planned Unit Development - Assessments Priority 145
Endorsement 5.1-06 - Planned Unit Development - Current Assessment 147
Endorsement 6 Variable Rate Mortgage 149
Endorsement 6.2 - Variable Rate Mortgage - Negative Amortization 151
Endorsement 7-06 - Manufactured Housing Unit 153
Endorsement 7.1 - Manufactured Housing - Conversion - Loan Policy 155
Endorsement 7.2 - Manufactured Housing - Conversion - Owner's Policy 157
Endorsement 8.1 - Environmental Protection Lien 159
Endorsement 8.2-06 - Commercial Environmental Protection Lien 161
Endorsement 9 -06 - Restrictions, Encroachments, Minerals - Loan Policy 163
Endorsement 9.1-06 - Covenants, Conditions and Restrictions - Unimproved Land - Owner’s Policy 167
Endorsement 9.2-06 - Covenants, Conditions and Restrictions - Improved Land - Owner’s Policy 169
Endorsement 9.3-06 - Covenants, Conditions and Restrictions - Loan Policy 171
Endorsement 9.6-06 - Private Rights - Loan Policy 175
Endorsement 9.6.1-06 - Private Rights - Current Assessments - Loan Policy 177
Endorsement 9.7-06 - Restrictions, Encroachments, Minerals - Land Under Development - Loan Policy 179
Endorsement 9.8-06 - Covenants Conditions and Restrictions - Land Under Development - Owner’s Polic 183
Endorsement 9.9-06 - Private Rights - Owner’s Policy 187
Endorsement 9.10-06 - Restrictions, Encroachments, Minerals - Current Violations - Loan Policy 189
Endorsement 10 - Assignment 193
Endorsement 10.1 - Assignment and Date Down 195
Endorsement 11 - Mortgage Modification 199
Endorsement 11.1 - Mortgage Modification with Subordination 201
Endorsement 11.2 - Mortgage Modification with Additional Amount of Insurance 203
Endorsement 12 - Aggregation - Loan Policy 207
Endorsement 12.1 - Aggregation State Limits - Loan Policy 211
Endorsement 13-06 - Leasehold - Owner's 215
Endorsement 13.1-06 - Leasehold - LOAN 217
Endorsement 14 - Future Advance - Priority 221
Endorsement 14.1 - Future Advance - Knowledge 225
Endorsement 14.2 - Future Advance - Letter of Credit 229
Endorsement 14.3 - Future Advance - Reverse Mortgage 233
Endorsement 15-06 - NON-IMPUTATION - Full Equity Transfer 237
Endorsement 15-1-06 - NON-IMPUTATION - Additional Insured 238
Endorsement 15.2-06 - NON-IMPUTATION - Partial Equity Transfer 239
Endorsement 15-1-06 - NON-IMPUTATION - Additional Insured 240
Endorsement 15.2-06 - NON-IMPUTATION - Partial Equity Transfer 241
Endorsement 16-06 - Mezzanine Financing 243
Endorsement 17-06 - Access and Entry 247
Endorsement 17.1-06 - Indirect Access and Entry 249
Endorsement 17.2-06 - Utility Access 251
Endorsement 18-06 - Single Tax Parcel 253
Endorsement 18.1-06 - Multiple Tax Parcel - Easements 255
Endorsement 18.2-06 - Multiple Tax Parcel 257
Endorsement 18.3[-06] - Single Tax Parcel and ID 259
Endorsement 19-06 - Contiguity - Multiple Parcels 261
Endorsement Form 19.1-06 - Contiguity - Single Parcel 263
Endorsement 19.2-06 - Contiguity - Specified Parcels 265
Endorsement 20-06 - First Loss - Multiple Parcel Transactions 267
Endorsement 22-06 - Location 269
Endorsement 22.1-06 - Location and Map 271
Endorsement 23-06 - Co-Insurance - Single Policy 273
Endorsement 23.1 06 - Co Insurance - Multiple Policies 277
Endorsement 24-06 - Doing Business 281
Endorsement 25-06 - Same as Survey 283
Endorsement 25.1-06 - Same as Portion of Survey 285
Endorsement 26 - Subdivision 287
Endorsement 27 - Usury 289
Endorsement 28-06 - Easement - Damage or Enforced Removal 291
Endorsement 28.1 - Encroachments - Boundaries and Easements 293
Endorsement 28.2-06 - Encroachments - Boundaries and Easements - Described Improvements 295
Endorsement 28.3-06 - Encroachments - Boundaries and Easements - Land Under Development 297
Endorsement 29-06 - Interest Rate Swap Endorsement - Direct Obligation 301
Endorsement 29.1-06 - Interest Rate Swap Endorsement - Additional Interest 303
Endorsement 29.2-06 - Interest Rate Swap Endorsement - Direct Obligation - Defined Amount 305
Endorsement 29.3-06 - Interest Rate Swap Endorsement - Additional Interest - Defined Amount 307
Endorsement 30 - One-to-Four Family Shared Appreciation Mortgage 309
Endorsement 30.1 - Commercial Participation Interest 311
Endorsement 31-06 - Severable Improvements 315
Endorsement 32 - Construction Loan 317
Endorsement 32.1 - Construction Loan - Direct Payment 319
Endorsement 32.2 - Construction Loan - Insured’s Direct Payment 323
Endorsement 33-06 - Disbursement 327
Endorsement 34-06 - Identified Risk Coverage 329
Endorsement 34.1- Identified Exception & Identified Risk Coverage 331
Endorsement 35-06 - Minerals and Other Subsurface Substances - Buildings 333
Endorsement 35.1-06 - Minerals and Other Subsurface Substances - Improvements 335
Endorsement 35.2-06 - Minerals and Other Subsurface Substances - Described Improvements 337
Endorsement 35.3-06 - Minerals and Other Subsurface Substances - Land Under Development 339
Endorsement 36-06 - Energy Project - Leasehold/Easement - Owner’s 341
Endorsement 36.1-06 - Energy Project - Leasehold/Easement - Loan 345
Endorsement 36.2-06 - Energy Project - Leasehold - Owner’s 349
Endorsement 36.3-06 - Energy Project - Leasehold - Loan 353
Endorsement 36.4-06 - Energy Project - Covenants, Conditions and Restrictions - Land Under Developm 357
Endorsement 36.5-06 - Energy Project - Covenants, Conditions and Restrictions - Land Under Develop 361
Endorsement 36.6-06 - Energy Project - Encroachments 365
Endorsement 36.7-06 - Energy Project - Fee Estate - Owner’s Policy 369
Endorsement 36.8-06 - Energy Project - Fee Estate - Loan Policy 373
Endorsement 37-06 - Assignment of Rents or Leases 377
Endorsement 38-06 - Mortgage Tax 379
Endorsement 39-06 - Policy Authentication 381
Endorsement 40-06 - Tax Credit - Owner’s Policy 383
Endorsement 40.1-06 - Tax Credit - Defined Amount - Owner’s Policy 387
Endorsement 41-06 - Water - Buildings 389
Endorsement 41.1-06 - Water - Improvement 391
Endorsement 41.2-06 - Water - Described Improvements 393
Endorsement 41.3-06 - Water - Land Under Development 395
Endorsement 42-06 - Commercial Lender Group Endorsement 397
Endorsement 43-06 - Anti-Taint 399
Endorsement 44-06 - Insured Mortgage Recording - Loan 401
Endorsement 45-06 - Pari Passu Mortgage - Loan Policy 403
Endorsement 46-06 - Option 407
Endorsement 47 - Operative Law - 2006 Owner’s Policy 409
Endorsement 47.1 - Operative Law - 2006 Loan Policy 411
CTIC ALTA Policy Comparisons 413
ALTA Loan Policy 2021 415
ALTA Loan Policy Comparison Charts 431
ALTA Owner’s Policy 2021 457
ALTA Owner’s Policy Comparison Charts 471
CTIC NCS Laws & Customs by State 491
Mechanic's Lien Laws by State 496
Alabama 503
Alaska 504
Arizona 505
Arkansas 506
California 507
Colorado 508
Connecticut 509
Delaware 510
District of Columbia 511
Florida 512
Georgia 513
Hawaii 514
Idaho 515
Illinois 516
Indiana 517
Iowa 518
Kansas 519
Kentucky 520
Louisiana 521
Maine 522
Maryland 523
Massachusetts 524
Michigan 525
Minnesota 526
Mississippi 527
Missouri 528
Montana 529
Nebraska 530
Nevada 531
New Hampshire 532
New Jersey 533
New Mexico 534
New York 535
North Carolina 536
North Dakota 537
Ohio 538
Oklahoma 539
Oregon 540
Pennsylvania 541
Rhode Island 542
South Carolina 543
South Dakota 544
Tennessee 545
Texas 546
Utah 547
Vermont 548
Virginia 549
Washington 550
West Virginia 551
Wisconsin 552
Wyoming 553
2021 Minimum Standard Requirements for ALTA/NSPS Land Title Surveys 555

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