CLTA 124.2 Covenants in Lease are Binding (08-04-22)

ENDORSEMENT
Attached to Policy No. ____________
Issued by
STEWART TITLE GUARANTY COMPANY 

1. For purposes of this endorsement:

a. “Burdened Property” means the real property described as follows:

<insert the legal description of the land burdened by the covenant here>

b. “Lessor” means the party or parties vested in fee title to the Burdened Property at the time that certain lease between Lessor and ___________ was executed and subsequently recorded in the Public Records on ________ as Instrument No. ________.

“Specified Covenant” means the specific covenant or covenants set out below and contained in Section(s) _______ of the lease identified in paragraph 1.b., requiring the Lessor to either (i) perform some act relating to the use, repair, or maintenance of the improvements, or to make payment of taxes and assessments on the Burdened Property, or (ii) to refrain from doing or permitting to be done some act relating to the use of the Burdened Property:

<Quote the specific provision(s) here> 

The Company insures against loss or damage sustained by the Insured by reason of the failure, at Date of Policy, of the Specified Covenant to be binding, as shown by the Public Records, upon the Lessor and each successive owner, during their respective period of ownership of the Burdened Property, and upon each person having any interest in the Burdened Property derived from the Lessor or through any successive owner of the Burdened Property.

2. This endorsement does not insure against loss or damage, and the Company will not pay costs, attorneys’ fees, or expenses that arise by reason of:

a. the failure of the Specified Covenant to be binding on a mortgagee of a mortgage, or the trustee or beneficiary of a deed of trust, in such capacity, while not in actual possession of the Burdened Property;

b. the failure of the Specified Covenant to bind a successive owner who derives title through:

i. a tax deed;

ii. a foreclosure of a bond or assessment; 

iii. enforcement of a federal tax lien; 

iv. a bankruptcy, as trustee or otherwise; 

v. a right or lien existing prior to the date of recording of the lease identified in paragraph 1.b.; or

c.. the nonperformance of any Specified Covenant.

This endorsement is issued as part of the policy.  Except as it expressly states, it does not (i) modify any of the terms and provisions of the policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy, or (iv) increase the Amount of Insurance.  To the extent a provision of the policy or a previous endorsement is inconsistent with an express provision of this endorsement, this endorsement controls.  Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior endorsements.

STEWART TITLE GUARANTY COMPANY

By:

Dated: