Bulletin: MU000008

Paragraph 4 of the ALTA Endorsement 4 (Condominium) insures against loss because of priority of maintenance liens over the insured mortgage. The ALTA Master Policy, Short Form Policy, CLTA Comprehensive Endorsement, and ALTA Endorsement 9 provide similar coverage.

The ALTA adopted ALTA Endorsement 4.1 on October 17, 1992. At paragraph 4, it insures against loss because of any charges or assessments that are due and unpaid at date of policy. It does not insure that the mortgage has priority over future condominium assessment liens.

Some states (such as Alaska and Pennsylvania) have a modified condominium endorsement like the ALTA Form 4.1.

In your states, future assessments (usually six months) have priority over a prior mortgage.

Company Policy:

Issue the ALTA Endorsement 4.1 or your modified condominium endorsement (in Alaska and Pennsylvania) to the Policy or Master Policy Certificate on condominiums. Do not issue the ALTA Endorsement Form 4 on condominiums without underwriter approval.

If you issue an ALTA Endorsement Form 9, CLTA Comprehensive Endorsement, Master Policy Certificate or Short Form Loan Policy on condominiums, add the following exception:

"The Policy and any endorsements to the Policy do not insure against loss because of condominium assessments not yet due and payable."

You also should comply with our Underwriting Manual Guidelines on condominiums (Condominiums 3.40.17).

Attached is the rate filing for your state where applicable.

Alta 4.1 Form - Condominium Endorsement

StateRate