Bulletin: WV2014001

Dear Associates: 

Effective December 27, 2013, the West Virginia Department of Insurance has approved Stewart Title Guaranty Company to issue the following ALTA policy forms and endorsements:

The new endorsement forms and/or policies are as follows:

ALTA Residential Limited Coverage Junior Loan Policy (08-01-12)

The ALTA Residential Limited Coverage Junior Loan Policy includes the Insuring Provisions, Exclusions from Coverage, Conditions and Schedule. This form does not insure the validity of the insured's mortgage and it does not insure that the Grantee (who will generally be the mortgagor) owns the land. It does provide defense costs as stated and does insure a later owner of the debt secured by the insured's mortgage. This form is issued before the Junior Mortgage is executed; it is similar to a commitment to insure.

ALTA Endorsement JR 1 (08-01-12)

This form is a continuation endorsement to the Junior Loan Policy. It is generally requested at the time the Insured's mortgage is executed. It will show intervening liens or deeds recorded after the Policy and it will show the Insured's mortgage.

ALTA Endorsement JR 2 (Future Advance) (08-01-12)

The JR 2 endorses the ALTA Residential Limited Coverage Junior Loan Policy to provide insurance as to future advance provisions and provisions providing for changes in the rate of interest in the insured's mortgage. 

ALTA Limited Pre-Foreclosure Policy (12-03-12)

The Limited Pre-Foreclosure Policy is issued to lenders whose liens are in default and who will foreclose or acquire title by deed in lieu of foreclosure. The policy insures certain matters recorded in the public records on or after the date of the foreclosing mortgage.

ALTA Endorsement (Limited Pre-Foreclosure Date-Down) (12-03-12)

This endorsement allows for Date of Policy changes and amendments to Schedules A and B of the Limited Pre-Foreclosure Policy.

ALTA Short Form Residential Loan Policy (12-03-12)

This form was updated to improve readability and clarity.

ALTA U.S. Policy Form (12-03-12)

This form was updated to improve readability and clarity.

ALTA Endorsement 3.2-06 Zoning – Land Under Development (04-02-12)

This endorsement insures against loss or damage in the event that the Land does not meet the zoning classification set forth in the endorsement, or zoning ordinances or amendments have been violated.

ALTA Endorsement 9-06 (Restrictions, Encroachments, Minerals - Loan Policy) (04-02-12)

This endorsement insures against loss or damage by reason of the violation of a Covenant that: (a) divests, subordinates, or extinguishes the lien of the Insured Mortgage; (b) results in the invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage; or (c) causes a loss of the Insured's Title acquired in satisfaction or partial satisfaction of the Indebtedness. This endorsement also insures against violations of restrictions, encroachments over easements, building lines or property lines, and damage by reason of mineral development.

ALTA Endorsement 9.7-06 Restrictions, Encroachments, Minerals – Land Under Development - Loan Policy (04-02-12)

This endorsement insures against loss or damage sustained by reason of: (a) a violation of a covenant; (b) a violation of a covenant by an Improvement on the Land or a Future Improvement; (c) enforced removal of an Improvement or Future Improvement on the Land as a result of a violation of a building setback line shown on a plat of subdivision; (d) a notice of a violation of an enforceable covenant related to environmental protection. This endorsement also insures against loss or damage sustained by reason of an encroachment or damage to an improvement located on the Land. This endorsement also insures against violations of restrictions, encroachments over easements, building lines or property lines, and damage by reason of mineral development. 

ALTA Endorsement 9.8-06 Covenants Conditions and Restrictions–Land Under Development–Owner’s Policy (04-02-12)

This endorsement insures against loss or damage sustained by reason of: (a) a violation of a covenant by an Improvement on the Land or a Future Improvement; (b) enforced removal of an Improvement or Future Improvement on the Land as a result of a violation of a building setback line shown on a plat of subdivision; (c) a notice of a violation of an enforceable covenant related to environmental protection.

ALTA Endorsement 9.9-06 Private Right-Owner’s Policy (04-02-13)

This endorsement to an Owner’s Policy insures against enforcement of a Private Right if a Covenant affecting the Title at Date of Policy based on a transfer of Title on or before Date of Policy causes a loss of the Insured’s Title.

ALTA Endorsement 9.10-06 Restrictions, Encroachment, Minerals-Current Violations-Loan Policy (04-02-13)

This endorsement to a Loan Policy insures against violations of covenants, encroachments on the Land from improvements, and damage to improvements by reason of mineral development.

ALTA Endorsement 12-06 Aggregation - Loan Policy (04-02-13)

This endorsement is also called the "tie-in," "cluster," or "spreader" endorsement. It is issued with a Loan Policy in many states on commercial transactions. The Endorsement aggregates the Amount of Insurance on each Loan Policy listed in the endorsement. This endorsement to multiple Loan Policies results in one liability for all policies; it creates the same result as one Policy covering multiple sites. This endorsement is not designed to be issued with an Owner's Policy.

ALTA Endorsement 12.1-06 Aggregation-State Limits-Loan Policy (04-02-13)

This Aggregation Endorsement includes a “State Limit” in section 3b, which provides that if the Land is located in one of the states identified within the subsection, then the Aggregate Amount of Insurance is restricted. Additionally, the extent of liability of the Company for loss or damage under a policy containing this endorsement shall not exceed the Aggregate Amount of Insurance for the State where the Land is located. This endorsement is not designed to be issued with an Owner's Policy.

ALTA Endorsement 28.1-06 (Encroachments – Boundaries and Easements (04-02-12)

This endorsement insures against loss or damage sustained by reason of: (a) An encroachment of any Improvement located on the Land onto adjoining land or onto that portion of the Land subject to an easement; (b) An encroachment of any Improvement located on adjoining land onto the Land; (c) Enforced removal of any Improvement located on the Land as a result of an encroachment; or (d) Enforced removal of any Improvement located on the Land that encroaches onto adjoining land. 

ALTA Endorsement 28.2-06 Encroachments-Boundaries and Easements-Described Improvements (04-02-13)

For the purposes of this endorsement, “Improvement” means each improvement on the Land or adjoining land at Date of Policy. This endorsement insures against loss or damage sustained by the Insured by reason of: (a)  an encroachment of any Improvement located on the Land onto adjoining land or onto that portion of the Land subject to an easement, unless an exception in Schedule B of the policy identifies the encroachment; (b)  an encroachment of any Improvement located on adjoining land onto the Land at Date of Policy, unless an exception in Schedule B of the policy identifies the encroachment; (c)  enforced removal of any Improvement located on the Land as a result of an encroachment by the Improvement onto any portion of the Land subject to any easement, in the event that the owners of the easement shall, for the purpose of exercising the right of use or maintenance of the easement, compel removal or relocation of the encroaching Improvement; or (d) enforced removal of any Improvement located on the Land that encroaches onto adjoining land.

ALTA Endorsement 30.1-06 Commercial Participation Interest (08-01-12)

This new endorsement insures as of Date of Policy against loss or damage by reason of (a) the invalidity or unenforceability of the lien of the Insured Mortgage resulting from the provisions of the Insured Mortgage or Loan Documents containing a participation interest; (b) lack of priority of the lien of the Insured Mortgage at Date of Policy, securing (i) the unpaid principal balance of the loan and (ii) the interest on the loan, including the participation interest, if any, which lack of priority is caused by the provisions in the Loan Documents for payment or allocation to the Insured of any participation interest.

ALTA Endorsement 32.1-06 Construction Loan-Loss of Priority-Direct Payment (04-02-13)

This endorsement insures construction loan advances only to the extent that direct payment to the Mechanic's Lien claimant has been made by the Company or by the Insured with the Company's written approval. It does not insure against loss or damage by reason of any Mechanic’s Lien arising from services, labor, material or equipment: (a) furnished after Date of Coverage; or (b) to the extent that a Mechanic’s Lien claimant was not directly paid by the Company or by the Insured with the Company’s written approval.

ALTA Endorsement 32.2-06 Construction Loan-Loss of Priority-Insured’s Direct Payment (04-02-13)

This endorsement insures construction loan advances only to the extent that direct payment to the Mechanic’s Lien claimant has been made by the Insured or on the Insured’s behalf on or before Date of Coverage. It does not insure against loss or damage by reason of any mechanic’s lien arising from services, labor, material or equipment: (a) furnished after Date of Coverage; or (b) to the extent that the Mechanic’s Lien claimant was not directly paid by the Insured or on the Insured’s behalf. ALTA 32.2-06 does not require that the Company or its agent will be involved in disbursement of funds.

ALTA Endorsement 35-06 Minerals and Other Subsurface Substances – Buildings (04-02-12)

This endorsement insures against loss or damage sustained by reason of the enforced removal or alteration of any Improvement resulting from the future extraction or development of minerals or any other subsurface substances.

ALTA Endorsement 35.1-06 Minerals and Other Subsurface Substances – Improvements (04-02-12)

This endorsement insures against loss or damage sustained by reason of the enforced removal or alteration of any Improvement, resulting from the future extraction or development of minerals or any other subsurface substances. "Improvement" means each itemized improvement. 

ALTA Endorsement 35.2-06 Minerals and Other Subsurface Substances – Described Improvements (04-02-12)

This endorsement insures against loss or damage sustained by reason of the future enforced removal or alteration of any Improvement resulting from the extraction or development of minerals or any other subsurface substances. "Improvement" means each itemized improvement.

ALTA Endorsement 35.3-06 Minerals and Other Subsurface Substances – Land Under Development (04-02-12)

This endorsement insures against loss or damage sustained by reason of the future enforced removal or alteration of an Improvement or a Future Improvement, resulting from use of the surface of the Land for the extraction or development of minerals or any other subsurface substances.

ALTA Endorsement 36-06 Energy Project – Leasehold/Easement – Owner’s (04-02-12)

This endorsement sets forth the kinds of damages that may be covered due to the loss of an Energy Project Lease or Easement (including relocation of improvements).

ALTA Endorsement 36.1-06 Energy Project – Leasehold/Easement – Loan (04-02-12)

This endorsement sets forth the kinds of damages that may be covered due to the loss of an Energy Project Lease or Easement (including relocation of improvements).

ALTA Endorsement 36.2-06 Energy Project – Leasehold – Owner’s (04-02-12)

This endorsement sets forth the kinds of damages that may be covered due to the loss of an Energy Project Lease (including relocation of improvements).

ALTA Endorsement 36.3-06 Energy Project – Leasehold – Loan (04-02-12)

This endorsement sets forth the kinds of damages that may be covered due to the loss of an Energy Project Lease (including relocation of improvements).

ALTA Endorsement 36.4-06 Energy Project – Covenants, Conditions and Restrictions – Land Under Development – Owner’s (04-02-12)

This endorsement insures against loss or damage sustained by the Insured by reason of: (a) A violation of an enforceable Covenant by any Electricity Facility or Severable Improvement; (b) Enforced removal of any Electricity Facility or Severable Improvement as a result of a violation of a building setback line shown on a plat of subdivision; or (c) A notice of a violation 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.

ALTA Endorsement 36.5-06 Energy Project – Covenants, Conditions and Restrictions – Land Under Development – Loan (04-02-12)

This endorsement insures against loss or damage sustained by reason of: (a) A violation of a Covenant that: divests, subordinates, or extinguishes, or results in the invalidity, unenforceability, or lack of priority of the lien of the Insured Mortgage; or 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 any Electricity Facility or Severable Improvement; (c) Enforced removal of any Electricity Facility or Severable Improvement, as a result of a violation of a building setback line shown on a plat of subdivision; or (d) A notice of a violation 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.

ALTA Endorsement 36.6-06 Energy Project – Encroachments (04-02-12)

This endorsement insures against loss or damage sustained by reason of encroachments or enforced removal of any Electricity Facility or Severable Improvement, as a result of an encroachment [or] Damage to any Electricity Facility or Severable Improvement that is located on or encroaches onto that portion of the Land subject to an easement.

ALTA Endorsement 37-06 (Assignment of Rents or Leases) (12-03-12)

This endorsement insures against any defect in the assignment of rents of leases or any assignment of the lessor's interest in any lease or leases or any assignment of rents affecting the Title and recorded in the Public Records at Date of Policy other than as set forth in any instrument referred to in Schedule B.

ALTA Endorsement 38-06 (Mortgage Tax) (12-03-12)

Upon payment of any deficiency in the Mortgage Tax, including interest and penalties, by the Insured, the Company insures against loss or damage sustained by the Insured by reason of: (a) the invalidity or unenforceability of the lien of the Insured Mortgage as security for the Indebtedness resulting from the failure to pay, at the time of recording, any portion of the Mortgage Tax; or (b) the lack of priority of the lien of the Insured Mortgage as security for the Indebtedness resulting from the failure to pay, at the time of recording, any portion of the Mortgage Tax.

ALTA Endorsement 39-06 Policy Authentication (04-02-13)

This endorsement insures that the Company will not deny liability under the policy or any endorsements issued with the policy solely on the grounds that the policy or endorsements were issued electronically or lack signatures in accordance with the Conditions.

Arbitration Endorsement E-9504

This endorsement deals with arbitration matters.

West Virginia Specific Endorsement for compliance with WV Code 114-14-6

As provided in West Virginia Code Section §114-14-6 (6.11) where applicable, this endorsement amends paragraphs 10, 11 or 12(b) of the Condition Section of the policy that may be entitled “Payment of Loss” to read as follows: When liability and the extent of loss or damage have been definitely fixed in accordance with these Conditions, the payment shall be made within 15 days thereafter. 

All agents using AFW or AFW+ must contact PropertyInfo Customer Care (888-526-3282) to get the new form(s) changes implemented in their AFW or AFW + systems. 

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

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