NM Contiguity of Single Parcel Endorsement Guideline 54

Explanation:

The Contiguity of Single Parcel Endorsement (NM 54; ALTA 19.1) may be attached to Owner's and Loan Policies on land that is not one to four family residential property to insure that the insured parcel is contiguous to another uninsured parcel of land along defined lines or boundaries. The endorsement also insures (to the same effect) that there are no gaps separating the insured parcel and the other uninsured parcel.  Typically, both parcels would be owned by the same owner, but would not have been acquired simultaneously.

Underwriting Requirements:

We require the following:

1. Do not issue on one to four family residential property.

2. Surveys of land and adjacent parcels are required.

3. Verify by examination of title (to the land and to the adjacent parcel) and by review of surveys that the defined lines are contiguous. Also verify that the insured owns an interest in or has a lien on the adjoining tract of land.

4. Complete paragraph 1 of the endorsement by specifically identifying the common boundary lines (e.g. "the failure of the land to be contiguous along the west boundary line of that certain parcel of real property legally described in the deed recorded in Volume 123, Page 234, Deed Records of Hope County, State of New Mexico"; or "the failure of the land to be contiguous along its westerly boundary line more particularly described as 'thence North 20 degrees 21 minutes 13 seconds West 200.51 feet' to the easterly boundary line of that certain parcel of real property legally in deed recorded in Volume 123, Page 234, Deed Records of Hope County, State of New Mexico more particularly described as 'thence South 20 degrees 21 minutes 13 seconds East 200.51 feet'").

5. Do not describe the common lines as "the contiguous boundary line", "the adjacent line", "the common line", or similar language. Such language simply begs the questions of contiguity.

6. The endorsement premium shall be $100.00 per policy.