Policy Endorsements (1 of 4)

Access

Insures against loss sustained by the Insured if the land does not abut on a physically open street.

Requirements: The name of the street is to be entered in the endorsement (Loan Policy).

Additional Interest

Insures against loss or damage sustained by reason of a final decree that the mortgage, as it secures additional interest, is invalid or unenforceable or does not share the same priority as is afforded the principal of the loan secured by the mortgage.

Requirements: The mortgage must secure amounts defined as "additional interest" (Loan Policy).

Cluster

Aggregates the amount of insurance available under several policies insuring the same loan.

Requirements: Mortgages on multiple sites need to be cross-defaulted and cross-collateralized, unless cross-collateralization would increase the amount of the mortgage recording tax. Only mortgage policies of the same title insurer can be "clustered". Applicable mortgage recording tax must be paid. Policy amounts must reflect either fair market value or be computed on a uniformly applied loan-to-value ratio (Loan Policy).

Comprehensive (Alta 9) (Restrictions, Encroachments, Minerals)

Affords assurances in connection with recorded covenants and restrictions, setback lines, mineral rights, easements and the maintenance of existing improvements.

Requirements: An updated, certified survey is to be reviewed in conjunction with the recorded easements and restrictive covenants (Loan Policy).

Condominium

Affords assurance that the unit is part of a validly organized condominium. Insures against outstanding common charges and assessments and any right of refusal to purchase and against the consequences of either an encroachment of a unit or a violation of restrictive covenants.

Requirements: Provide any required waiver of a right of first refusal and consent to mortgage. Confirm that there are no outstanding common charges or assessments (Owner's and Loan Policies).

Contiguity

Insures against loss or damage if the parcels of land described in the policy are not contiguous to each other along their common boundary line(s).

Requirements: Provide any required waiver of a right of first refusal and consent to mortgage. Confirm that there are no outstanding common charges or assessments (Owner's and Loan Policies).

Contract Vendee (Commercial)

Insures the validity and enforceability of a contract of sale to purchase commercial property.

Requirements: The contract or a memorandum of contract must be recorded (Owner's Policy).

Contract Vendee (Residential)

Insures the validity and enforceability of a contract of sale to purchase commercial property.

Requirements: The contract or a memorandum of contract must be recorded (Owner's Policy).

Cooperative - Loan Policy

Affords assurance that the cooperative corporation is duly formed and holds title to the land and building of which the unit is a part. Insures against outstanding maintenance charges and assessments, and any right of first refusal to purchase. Insures against the consequences of either an encroachment of the building or a violation of restrictive covenants. Provides a means to determine the value of the estate insured in the event of a loss.

Requirements: Provide any required waiver of a right of first refusal and consent to a mortgage. Confirm that there are no outstanding maintenance charges or assessments (Owner's and Loan Policies).

Cooperative - Owners Policy

Requirements: Provide any required waiver of a right of first refusal and consent to a mortgage. Confirm that there are no outstanding maintenance charges or assessments (Owner's and Loan Policies).

Development Rights (New York City)

Insures that all "parties-in-interest" under the Zoning Resolution are bounded by the Declaration of Zoning Lot Restrictions and that the Zoning Lot and Development Agreement ("ZLDA") validly transfers floor area development rights. It also insures an easement for light and air and a negative covenant not to build over and above the transferor's building if provided in the ZLDA.

Requirements: All "parties-in-interest" under the New York City Zoning Resolution must join in or consent to the development rights transfer. The Declaration of Restrictions, ZLDA, and any waivers are to be recorded. An easement of light and air and a negative covenant not to build must be granted by the ZLDA. Mortgages on the burdened parcel(s) are to be subordinated to the easement of light and air (Owner's and Loan Policies).

Environmental Protection Lien (New York City)

Insures the priority of the lien of a mortgage property over recorded environmental protection liens not excepted in the policy or under state statutes not specifically excluded from coverage.

Requirements: None (Loan Policy).

Environmental Protection Lien (New York)