Bulletin: MI2024002

Dear Associates:

In furtherance of Stewart Bulletin MI2021003, please be advised that effective February 26, 2024, Stewart Title Guaranty Company removed the charge for the ALTA 9.10-06 Restrictions, Encroachments, Minerals – Current Violations – Loan Policy.

As a result, we are now able to facilitate the use of either Short Form Policy option [Current Assessments or Assessments Priority] as an alternative for your use. As a reminder, please know the following:

There are a few notable distinctions between the two forms. The Assessments Priority form, Paragraph 2 b provides coverage over a forfeiture or reversion of title from a future violation of covenants and restrictions. In contrast, the Current Assessments form, Paragraph 2 b provides coverage over a forfeiture or reversion of title from a violation of covenants and restrictions at the Date of Policy.

In MI2021003 we encouraged the use of the Current Assessments version. But this bulletin gives the option to the Issuing Office as to which form to use, as follows:

If you issue the Assessments Priority version, you may issue the Policy and mark the ALTA 9-06 as an automatic endorsement. [There is no charge for the ALTA 9-06.] The only time you may not issue the Priority Assessments version is in the situation where the mortgaged property is a condominium unit and the mortgage to be insured is a second priority mortgage. [A first mortgage is already of record.] You would issue, instead, the Current Assessments version. This is due to the provisions of MCL 559.208 [Sec. 108] which provide that subsequently recorded Condominium Association liens have priority over second mortgages on condominium units.

Or you may issue the Current Assessments version at any time with no condition and mark the ALTA 9.10-06 automatically (at no charge like the ALTA 9-06) providing the lender with the same coverage afforded by the ALTA 9.

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

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