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

Explanation:

The Improvements in this endorsement are limited to only those listed in Section 2 of the endorsement and may include Improvements located on the Land or located on adjoining land at the Date of Policy.

This endorsement provides coverage against loss by reason of an encroachment of (1) any Improvement on the Land onto adjoining land, (2) any Improvement on the Land onto that portion of the Land subject to an easement, or (3) any Improvement on adjoining land onto the Land at the Date of Policy. It also provides insurance by reason of enforced removal of any Improvement on the Land due to such encroachments.

Section 4 of the endorsement allows the Company to designate encroachments listed as Exceptions on Schedule B for which it will not provide insurance under this endorsement.

This endorsement can be issued with either Loan or Owner's Policies. It may be issued on either commercial or residential land.

Underwriting Requirements:

(1) Unless underwriting guidelines by the Company provide otherwise, require a survey reflecting the current Improvements on the Land and current Improvements on adjoining land that encroach upon the Land. Except in Schedule B to all encroachments over property lines or easements.

(2) Itemize in Section 2 those Improvements on the Land and improvements on adjoining land to be included as an “Improvement” in the endorsement.

(3) If Improvements encroach over more than one half of the width of an easement, list the Exception number(s) for such encroachments in Section 4 of the Endorsement, unless you secure underwriter approval.

(4) If Improvements encroach over adjoining land or onto a road, list the Exception number(s) for such encroachments in Section 4 of the Endorsement, unless you secure underwriter approval.

(5) If Improvements located on adjoining land encroach onto the Land, list the Exception number(s) for such encroachments in Section 4 of the Endorsement, unless you secure underwriter approval.

(6)  The ALTA Energy Project Endorsement (ALTA Endorsement 36.6-06) contains similar provisions, so the ALTA 28.2-06 endorsement is not necessary when offering the Energy Project Endorsement and should not be issued without Senior Underwriter approval.

The underwriting guidelines contained herein have been provided for general reference. The facts, circumstances, and location of the subject property should be considered when determining the issuance of the requested form or endorsement. Please note that all of the forms and endorsements included in this system may not be available in all states. Accordingly, please contact the appropriate Stewart Title Guaranty Company underwriting personnel in order to determine availability.

Compliance with the underwriting guidelines contained herein in no way obligates Stewart Title Guaranty Company to issue any form or endorsement.