Chicago Title Endorsement Handbook - Chicago, IL

Non-ALTA 2006 • 321 POLICY MODIFICATION 4 ENDORSEMENT (EXTENDED COVERAGE) Policy Modification Endorsement — Form 4 is commonly known as our Extended Coverage Endorsement and is available only for owner’s policies. This endorsement is used to delete any or all of the five general exceptions which appear on an ALTA Owner’s Policy. The five general exceptions which appear on Schedule B of the ALTA Owner’s Policy relate to matters not disclosed by the Public Records. Specifically, they concern: 1) possession; 2) matters which would be disclosed by a survey or inspection of the Land; 3) unrecorded easements; 4) unrecorded mechanics lien claims; and 5) taxes and special assessments not of record. In order to approve the issuance of this endorsement and thereby provide “extended coverage” to the Insured over such matters, the following clearance is typically required: a. A “Statement Required for the Issuance of ALTA Owners and Loan Policies,” properly executed by the owner, the buyer and possibly additional parties; b. If the Land is residential (as defined below), a survey or a written statement by the buyer(s) that no survey is available. If the Land is not residential, a current, acceptable survey certified to Chicago Title Insurance Company must be submitted; and c. For non-residential properties, an affidavit as to the owner’s lack of knowledge of any unrecorded easements; or, for unimproved properties or properties lying within vacated streets, alleys or abandoned railroad rights of way, letters from the municipality and the appropriate utilities serving the Land which state whether or not they have any facilities, etc., in or on the Land. Matters disclosed by the above clearance materials will be raised specifically on Schedule B of the policy. Additional clearance materials, such as copies of leases and mechanics’ lien waivers, may also be required. If the Land is improved as residential property and is located within the Chicago metropolitan area, there is no additional premium for the issuance of this endorsement and the approval of extended coverage. Residential property, for this purpose, is defined as land improved with a completed single-family residence, a townhouse, a residential condominium unit or an apartment building containing no commercial use and no more than four units. Given the broad coverage provided by this endorsement and the wide variance in local practices, the availability, requirements, and premium for this endorsement in any specific transaction should be discussed with your local Chicago Title representative at the earliest opportunity. Policy Modification Endorsement (Extended Coverage)