DE ALTA Expanded Coverage Residential Loan Policy - Current Assessments (04/02/15) - as modified by DTIRB (09/01/17)

EXPANDED COVERAGE RESIDENTIAL LOAN POLICY

CURRENT ASSESSMENTS

FOR ONE-TO-FOUR FAMILY RESIDENTIAL PROPERTY

Issued by

STEWART TITLE INSURANCE COMPANY

Any notice of claim and any other notice or statement in writing required to be given to the Company under this policy must be given to the Company at the address shown in Section 17 of the Conditions.

SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B, AND THE CONDITIONS, BLANK TITLE INSURANCE COMPANY, a Blank corporation (the “Company”) insures as of Date of Policy and, to the extent stated in Covered Risks 11, 16, 17, 18, 19, 20, 21, 22, 23, 24, 27, and 28, after Date of Policy, against loss or damage, not exceeding the Amount of Insurance, sustained or incurred by the Insured by reason of:

COVERED RISKS

1.             Title being vested other than as stated in Schedule A.

2.             Any defect in or lien or encumbrance on the Title. This Covered Risk 2 includes but is not limited to insurance against loss from:

(a)           a defect in the Title caused by

(i)             forgery, fraud, undue influence, duress, incompetency, incapacity, or impersonation;

(ii)            failure of any person or Entity to have authorized a transfer or conveyance;

(iii)           a document affecting Title not properly created, executed, witnessed, sealed, acknowledged, notarized, or delivered;

(iv)          failure to perform those acts necessary to create a document by electronic means authorized by law;

(v)           a document executed under a falsified, expired, or otherwise invalid power of attorney;

(vi)          a document not properly filed, recorded, or indexed in the Public Records including failure to perform those acts by electronic means authorized by law; or

(vii)         a defective judicial or administrative proceeding.

(b)           the lien of real estate taxes or assessments imposed on the Title by a governmental authority due or payable, but unpaid.

(c)           any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land. The term “encroachment” includes encroachments of existing improvements located on the Land onto adjoining land, and encroachments onto the Land of existing improvements located on adjoining land.  

3.             Unmarketable Title.

4.             No right of access to and from the Land.

5.             The violation or enforcement of any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to:

(a)           the occupancy, use, or enjoyment of the Land;

(b)           the character, dimensions, or location of any improvement erected on the Land;

(c)           the subdivision of land; or

(d)           environmental protection,

if a notice, describing any part of the Land, is recorded in the Public Records setting forth the violation or intention to enforce, but only to the extent of the violation or enforcement referred to in that notice.

6.             An enforcement action based on the exercise of a governmental police power not covered by Covered Risk 5 if a notice of the enforcement action, describing any part of the Land, is recorded in the Public Records, but only to the extent of the enforcement referred to in that notice.

7.             The exercise of the rights of eminent domain if a notice of the exercise, describing any part of the Land, is recorded in the Public Records.

8.             Any taking by a governmental body that has occurred and is binding on the rights of a purchaser for value without Knowledge.

9.             The invalidity or unenforceability of the lien of the Insured Mortgage upon the Title. This Covered Risk 9 includes but is not limited to insurance against loss from any of the following impairing the lien of the Insured Mortgage:

(a)           forgery, fraud, undue influence, duress, incompetency, incapacity, or impersonation;

(b)           failure of any person or Entity to have authorized a transfer or conveyance;

(c)           the Insured Mortgage not being properly created, executed, witnessed, sealed, acknowledged, notarized, or delivered;

(d)           failure to perform those acts necessary to create a document by electronic means authorized by law;

(e)           a document executed under a falsified, expired, or otherwise invalid power of attorney;

(f)            a document not properly filed, recorded, or indexed in the Public Records including failure to perform those acts by electronic means authorized by law; or

(g)           a defective judicial or administrative proceeding.     

10.          The lack of priority of the lien of the Insured Mortgage upon the Title over any other lien or encumbrance.

11.          The lack of priority of the lien of the Insured Mortgage upon the Title:

(a)           as security for each and every advance of proceeds of the loan secured by the Insured Mortgage over any statutory lien for services, labor, or material arising from construction of an improvement or work related to the Land when the improvement or work is either

(i)             contracted for or commenced on or before Date of Policy; or

(ii)            contracted for, commenced, or continued after Date of Policy if the construction is financed, in whole or in part, by proceeds of the loan secured by the Insured Mortgage that the Insured has advanced or is obligated on Date of Policy to advance;

(b)           over the lien of any assessments for street improvements under construction or completed at Date of Policy;

(c)           over any defect in or lien or encumbrance on the Title attaching or created before, on or after Date of Policy; as to each and every advance of proceeds of the loan secured by the Insured Mortgage, which at Date of Policy the Insured has made or is legally obligated to make; and

(d)           over any environmental protection lien that comes into existence before, on or after Date of Policy pursuant to any federal statute in effect at Date of Policy as to each and every advance of proceeds of the loan secured by the Insured Mortgage, which at Date of Policy the Insured has made or is legally obligated to make.

12.          The invalidity or unenforceability of any assignment of the Insured Mortgage, provided the assignment is shown in Schedule A, or the failure of the assignment shown in Schedule A to vest title to the Insured Mortgage in the named Insured assignee free and clear of all liens.

13.          The failure of the Land:

(a)           to have the street address shown in Schedule A, and the failure of the map, if any, attached to this policy to show the correct location and dimensions of the Land according to the Public Record.

(b)           to be improved with a one-to-four family residential structure or, if stated in the description of the Land, a residential condominium unit.

(c)           to be zoned to permit a one-to-four family residential structure or, if stated in the description of the Land, a residential condominium unit.

(d)           to be a lawfully created one-to-four family residential parcel according to state statutes and local ordinances governing subdivision of land.

14.          The forced removal, modification, or replacement of any existing one-to-four family residential structure or residential condominium unit located on the Land resulting from the violation of any of the following requirements of any applicable zoning ordinance: area or dimensions of the Land as a building site; floor space area of the structure; height of the structure; or distance of the structure from the boundary lines of the Land.

15.          The assessment or taxation of the Land by governmental authority as part of a larger parcel.

16.          The failure of the existing one-to-four family residential structure or residential condominium unit or a portion or a future modification or replacement to have been constructed with a valid building permit from the appropriate local government issuing office or agency.

17.          The inability to use the existing one-to-four family residential structure or residential condominium unit or a portion of it or a future modification or replacement to it for one-to-four family residential purposes because that use violates a restriction shown in Schedule B.

18.          Damage to improvements, lawns, shrubbery or trees constructed or planted on the Land before, on or after Date of Policy resulting from the future exercise of any right to use the surface of the Land for the extraction or development of minerals, water or any other substance.

19.          The encroachment onto the Land of an improvement constructed after Date of Policy.

20.          Encroachment of improvements constructed on the Land after Date of Policy onto adjoining property or over any easement or building setback line on the Land.

21.          Forgery after Date of Policy of:

(a)           any instrument purporting to subordinate, assign, release, or reconvey the Insured Mortgage; and

(b)           any instrument purporting to convey or encumber the Title.

22.          The invalidity, unenforceability, or lack of priority of the lien of the Insured Mortgage as to Advances made or changes in the rate of interest charged subsequent to any modification of the terms of the Insured Mortgage made after Date of Policy which are secured by the terms of the Insured Mortgage as modified.

23.          Damage to improvements, lawns, shrubbery, or trees constructed or planted on the Land before, on or after Date of Policy occasioned by the exercise of the right to use or maintain any easement referred to in Schedule B.

24.          Interference with the use for one-to-four family residential purposes of the improvements constructed on the Land before, on or after Date of Policy occasioned by the exercise of the right to use or maintain any easement referred to in Schedule B.

25.          Supplemental real estate taxes, including those caused by construction or a change of ownership or use, that occurred before Date of Policy, not previously assessed against the Land for any period before Date of Policy.

26.          The invalidity or unenforceability of the lien of the Insured Mortgage upon the Title based upon a violation of the usury laws of the state where the Land is located if no other Mortgage is shown as an exception in Schedule B.

27.          The invalidity, unenforceability, lack of priority, or avoidance of the lien of the Insured Mortgage upon the Title:

(a)           resulting from the avoidance in whole or in part, or from a court order providing an alternative remedy, of any transfer of all or any part of the title to or any interest in the Land occurring prior to the transaction creating the lien of the Insured Mortgage because that prior transfer constituted a fraudulent or preferential transfer under federal bankruptcy, state insolvency, or similar creditors’ rights laws; or

(b)           because the Insured Mortgage constitutes a preferential transfer under federal bankruptcy, state insolvency, or similar creditors’ rights laws by reason of the failure of its recording in the Public Records

(i)         to be timely, or

(ii)         to impart notice of its existence to a purchaser for value or to a judgment or lien creditor.

28.          Any defect in or lien or encumbrance on the Title or other matter insured against by this policy that has been created or attached or has been filed or recorded in the Public Records subsequent to Date of Policy and prior to the recording of the Insured Mortgage in the Public Records.

Unless stated to the contrary in Schedule B, the Company incorporates the following American Land Title Association endorsements into this policy by this reference as if these endorsements had been attached to this policy

(a)           DTIRB – 02 (ALTA Form 4.1-06 (Condominium)), if a condominium unit is referred to in the description of the Land;

(b)           DTIRB – 17 (ALTA Form 5.1-06 (Planned Unit Development));

(c)           DTIRB -  23 (ALTA Form 6-06 (Variable Rate Mortgage));

(d)           DTIRB – 24 (ALTA Form 6.2-06 (Variable Rate Mortgage—Negative Amortization));

(e)           DTIRB – 05 (ALTA Form 8.1-06 (Environmental Protection Lien)) subject to the statutes, if any, shown in Schedule B specifically for this endorsement; and

(f)            DTIRB – 80 (ALTA Form 9.10-06 (Restrictions, Encroachments, Minerals–Current Violations–Loan Policy)).

The Company will also pay the costs, attorneys’ fees, and expenses incurred in defense of any matter insured against by this policy, but only to the extent provided in the Conditions.

[Witness clause optional]

STEWART TITLE INSURANCE COMPANY

By:______________________________

PRESIDENT

By:______________________________  

SECRETARY