Bulletin: DC2015002

Dear Associates:

Stewart Title Guaranty Company has filed new American Land Title Association (ALTA) forms with the District of Columbia Department of Insurance, Securities and Banking. These forms were approved for use in the District of Columbia effective October 14, 2015. The new endorsement forms are designed to be used with the 2006 ALTA Loan and Owner's Policies already approved for use in the District of Columbia. 

Please remember that all DC title policies must include the Arbitration Endorsement which removes the arbitration provision from the forms.

The following policy forms and endorsement forms have been approved for use in the District of Columbia: 

I. ALTA POLICY FORMS        

ALTA Homeowner's Policy of Title Insurance 2-3-10 (12-02-13)       

The ALTA Homeowner's Policy of Title Insurance 2-3-10 (12-02-13) is designed to incorporate the changes of the 2006 Owner's Policy and improve the title insurance coverage given to the insured. The only changes in the 2013 Policy include:        

1. This policy clarifies coverage relating to trusts or estate planning entities within Condition 2.b. (3); and        

2. The following exclusions from coverage: (8) Contamination, explosion, fire, flooding, vibration, fracturing, earthquake, or subsidence; and (9) Negligence by a person or an Entity exercising a right to extract or develop minerals, water, or any other substances were added.        

ALTA Expanded Coverage Residential Loan Policy (12-02-13)        

The ALTA Expanded Coverage Residential Loan Policy for a One-To Four Family Residence (12-02-13) is designed to incorporate the changes of the 2006 Loan Policy and improve the title insurance coverage given to the insured. The only changes in the policy include:        

1. The following exclusions from coverage: (10) Contamination, explosion, fire, flooding, vibration, fracturing, earthquake, or subsidence; and (11) Negligence by a person or an Entity exercising a right to extract or develop minerals, water, or any other substances were added.        

ALTA Short Form Residential Limited Coverage Junior Loan Policy with addendum (04-02-13)        

The ALTA Short Form Residential Limited Coverage Junior Loan Policy is the abbreviated short form version of the ALTA Residential Limited Coverage Junior Loan Policy (08-01-12) already filed and which includes the Insuring Provisions, Exclusions from Coverage, Conditions, and Schedule. The ALTA Residential Limited Coverage Junior Loan Policy insures against loss or damage incurred by reason of: (1) the Grantee not being the named grantee on the last recorded deed; (2) the Land not being the same as the land described in the last recorded deed; (3) any Monetary Liens recorded in the Public Records; and (4) any ad valorem taxes or assessments that appear in the tax records. This policy does not insure the validity of the insured's mortgage and it does not insure that the Grantee (who will generally be the mortgagor) owns the land. It does provide defense costs as stated and does insure a later owner of the debt secured by the insured's mortgage. This form is issued before the Junior Mortgage is executed; it is similar to a commitment to insure. The addendum to the Short Form Residential Limited Coverage Loan Policy would be attached to the policy to show any special exceptions on a case-by-case basis, after the examination of title, such as liens or mortgages or deeds of record. These specialized items could change from each piece of property so the addendum allows for reference to these title conditions as they relate to each specific property.

II. ALTA ENDORSEMENTS        

The American Land Title Association adopted for use new endorsements as of December 2, 2013, which are to be used in connection with the 2006 policies already in use. These endorsements have been designed to follow the same concepts as the 2006 ALTA Policies, and to better coordinate with the 2006 ALTA Loan and Owner's Policies already approved for use in the state.       

The format of these new forms should aid in their understanding and interpretation as they have been written to clarify terms and reorganize the content of the language for easier understanding by the consumer. These newly adopted endorsements are: ALTA Endorsement ALTA 11.2-06; ALTA 41-06; ALTA 41.1-06; ALTA 41.2-06; ALTA 41.3-06; ALTA 42-06; ALTA 43-06 and ALTA 44-06.    

ALTA Endorsement 11.2-06 (Mortgage Modification with Additional Amounts of Insurance) (12-02-13)        

This endorsement insures against loss or damage sustained by the Insured by reason of: (a) The invalidity or unenforceability of the lien of the Insured Mortgage upon the Title as a result of the Modification; (b) The lack of priority of the lien of the Insured Mortgage over defects in or liens or encumbrances on the Title, (with exceptions, if any); (c) The failure of matters to be subordinate to the lien of the Insured Mortgage, (matters to be insured as subordinate should be specified, if any).        

ALTA Endorsement 41-06 (Water - Buildings) (12-02-13)        

This endorsement insures against loss or damage sustained by the Insured by reason of the enforced removal or alteration of any Improvement resulting from the future exercise of any right existing at Date of Policy to use the surface of the Land for the extraction or development of water excepted from the description of the Land or excepted in Schedule B.        

ALTA Endorsement 41.1-06 (Water - Improvements) (12-02-13)        

This endorsement insures against loss or damage sustained by the Insured by reason of the enforced removal or alteration of any Improvement, resulting from the future exercise of any right existing at Date of Policy to use the surface of the Land for the extraction or development of water excepted from the description of the Land or excepted in Schedule B.        

ALTA Endorsement 41.2-06 (Water - Described Improvements) (12-02-13)        

This endorsement insures against loss or damage sustained by the Insured by reason of the enforced removal or alteration of any Improvement resulting from the future exercise of any right existing at Date of Policy to use the surface of the Land for the extraction or development of water excepted from the description of the Land or excepted in Schedule B.        

ALTA Endorsement 41.3-06 (Water - Land Under Development) (12-02-13)        

This endorsement insures against loss or damage sustained by the Insured by reason of the enforced removal or alteration of an Improvement or a Future Improvement, resulting from the future exercise of any right existing at Date of Policy to use the surface of the Land for the extraction or development of water excepted from the description of the Land or excepted in Schedule B.        

ALTA Endorsement 42-06 (Commercial Lender Group) (12-02-13)        

This endorsement insures against loss or damage sustained by the Insured by reason of: (a) The invalidity or unenforceability of the lien of the Insured Mortgage caused by transfers after the Date of Policy of portions of the Indebtedness by the Participants; (b) Loss of priority of the lien of the Insured Mortgage, which loss of priority is caused by transfers after the Date of Policy of portions of the Indebtedness by the Participants.        

ALTA Endorsement 43-06 (Anti-Taint) (12-02-13)        

This endorsement insures against loss or damage sustained by the Insured by reason of the loss of priority of the lien of the Insured Mortgage, as security for the amount of the Indebtedness advanced as the Term Loan, resulting from reductions and subsequent increases of the outstanding principal amount of the Indebtedness payable as the Revolving Credit Loan.        

ALTA Endorsement 44-06 (Insured Mortgage Recording) (12-02-13)        

This endorsement insures against loss or damage sustained by the Insured by reason of the failure of the Insured Mortgage to have been recorded in the Public Records as set forth in Section 3 of the Endorsement.

Any agent using AIM+ should contact PropertyInfo Customer Care to have the new form changes implemented in their system. For agents on any other software system, please contact your software provider.

The guidelines and underwriting requirements for issuance of these endorsements may be found on Virtual Underwriting at www.vuwriter.com. If you have questions relating to this bulletin, please contact your local underwriting personnel or Stewart Legal Services.    

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

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