CO Comprehensive Endorsement Guideline 100

Explanation:

Provides the lender with affirmative insurance concerning covenants, conditions and restrictions, encroachments, easements and mineral development.

Underwriting Requirements:

(1) This endorsement should not be used on any:
(a) Loans which are secured by vacant (unimproved) land without the deletions of paragraphs 1a, and 2 of the endorsement.
(b) This endorsement cannot be issued for Constructions loans. However, after inspection of subject property, the endorsement may be issued for a take out or permanent loan.
(c) This endorsement should not be issued as an attachment to any previously issued loan policy.
(2) Paragraph 1a of the Colorado 100 Endorsement assures the lender that there are no CC&Rs that would cut off, subordinate or otherwise impair the lien of the deed of trust or mortgage.
CC&Rs must be reviewed before the endorsement can be issued in order to make certain that no forfeiture or reversion clause provide for a safety clause against the effect of any future violation(s). Additionally, title personnel must make certain that no assessment liens have priority over the deed of trust or mortgage.
(3) Paragraph 1b of the Colorado 100 endorsement provides that there are no present violation of CC&Rs, except as shown in Schedule B of the loan policy.
If a violation of CC&Rs is in effect, the violations must be shown as an exception on Schedule B of the loan policy.
(4) Paragraph 1c of the Colorado 100 Endorsement assures the lender that there are no encroachments of improvements on adjoining property onto the subject property. If an encroachment exists, paragraph 1c must be omitted from the Colorado 100 Endorsement or amended to read " ....other than as shown as Exception __ in Schedule B".
(5) Paragraph 2 of the Colorado 100 Endorsement provides that existing improvements on subject property that are located or encroach on an easement cannot be damaged by the exercise or maintenance of said easement. Paragraph 2 of the Colorado 100 is to be omitted or amended to read ".... other than as shown in the Exception ____ in Schedule B" if an encroachment onto the easement is in existence.
(6) Paragraph 3 of the Colorado Endorsement insures the lender against the forcible removal of any existing improvements on subject property which encroach onto adjoining property. This paragraph is to be deleted if there is an encroachment or amended to read: " .... other than as shown in the Exception ___ in Schedule B".
(7) If more than one paragraph is omitted from this endorsement a special limited endorsement should be considered. Please contact the appropriate Stewart Title Guaranty underwriting personnel for instructions.