Covenants, Conditions, and Restrictions

The Company requires a satisfactory statement from the Association or its agent stating the amount, if any, of the unpaid common or maintenance charges against the land to the date of closing. At that time, the Company may make additional requirements or exceptions.
Comment: Verify any assessments set forth in the covenants are paid current.

Notice of assessment pursuant to the Declaration of restrictions in the amount of $_________, recorded _______________. The Company requires a satisfactory release for its review. At that time, the Company may make additional requirements or exceptions.
Comment: Use this requirement to secure a release of a recorded assessment lien.

The covenants, conditions, and restrictions contain a provision requiring prior approval of the sale by the Association or a right of first refusal. The Company requires satisfactory proof that this provision has been complied with.
Comment: If the covenants contain a right of first refusal, secure approval of the proposed transaction. If the first refusal is not subordinate to a future mortgage foreclosure, modify any affirmative coverage or endorsement so that the Company does not insure against that right.

Terms, provisions, options, rights of first refusal, covenants, conditions, restrictions, easements, charges, assessments and liens provided in the Covenants, Conditions and Restrictions recorded __________________, but omitting any covenant, condition or restriction, if any, based on race, color, religion, sex, handicap, familial status, or national origin unless and only to the extent that the covenant, condition or restriction (a) is exempt under Title 42 of the United States Code, or (b) relates to handicap, but does not discriminate against handicapped persons.
Comment: Except to the terms of the covenants. This exception expressly refers to possible right of first refusal, easements, and assessment liens.

Terms, provisions, options, rights of first refusal, covenants, conditions, restrictions, easements, charges, assessments and liens provided in the Covenants, Conditions and Restrictions recorded __________________, but omitting any covenant, condition or restriction, if any, based on race, color, religion, sex, handicap, familial status, or national origin unless and only to the extent that the covenant, condition or restriction (a) is exempt under Title 42 of the United States Code, or (b) relates to handicap, but does not discriminate against handicapped persons. These Covenants, Conditions and Restrictions also provide that any violation thereof shall not defeat or render invalid the lien of the Insured Mortgage.
Comment: This exception is appropriate only for the Loan Policy and only if the covenants provide that violations will not defeat the insured mortgage.

Terms, provisions, options, rights of first refusal, covenants, conditions, restrictions, easements, charges, assessments and liens provided in the Covenants, Conditions and Restrictions recorded __________________, but omitting any covenant, condition or restriction, if any, based on race, color, religion, sex, handicap, familial status, or national origin unless and only to the extent that the covenant, condition or restriction (a) is exempt under Title 42 of the United States Code, or (b) relates to handicap, but does not discriminate against handicapped persons. This instrument has been amended or modified by the instrument recorded _______________.
Comment: Use this exception if the covenants have apparently been amended.

Terms, provisions, covenants, conditions, restrictions, easements, charges, assessments and liens provided in the Covenants, Conditions and Restrictions recorded __________________, but omitting any covenant, condition or restriction, if any, based on race, color, religion, sex, handicap, familial status, or national origin unless and only to the extent that the covenant, condition or restriction (a) is exempt under Title 42 of the United States Code, or (b) relates to handicap, but does not discriminate against handicapped persons.
Comment: Except to the terms of the covenants. This exception expressly refers to easements and assessment liens (but not to possible rights of first refusal).

Terms, provisions, covenants, conditions, restrictions, easements, charges, assessments and liens provided in the Covenants, Conditions and Restrictions recorded __________________, but omitting any covenant, condition or restriction, if any, based on race, color, religion, sex, handicap, familial status, or national origin unless and only to the extent that the covenant, condition or restriction (a) is exempt under Title 42 of the United States Code, or (b) relates to handicap, but does not discriminate against handicapped persons. These Covenants, Conditions and Restrictions also provide that any violation thereof shall not defeat or render invalid the lien of the Insured Mortgage.
Comment: This exception is appropriate only for the Loan Policy and only if the covenants provide that violations will not defeat the insured mortgage.

Terms, provisions, covenants, conditions, restrictions, easements, charges, assessments and liens provided in the Covenants, Conditions and Restrictions recorded __________________, but omitting any covenant, condition or restriction, if any, based on race, color, religion, sex, handicap, familial status, or national origin unless and only to the extent that the covenant, condition or restriction (a) is exempt under Title 42 of the United States Code, or (b) relates to handicap, but does not discriminate against handicapped persons. This instrument has been amended or modified by the instrument recorded _______________.
Comment: Use this exception if the covenants have apparently been amended.

The Covenants, Conditions and Restrictions recorded __________________ also provide that any violation thereof shall not defeat or render invalid the lien of the Insured Mortgage.
Comment: This exception is appropriate only for the Loan Policy and only if the covenants provide that violations will not defeat the insured mortgage.

The Covenants, Conditions and Restrictions recorded __________________ have been amended or modified by the instrument recorded _______________.
Comment: Use this exception if the covenants have apparently been amended.

Covenants, conditions, and restrictions as set forth in instrument recorded ___________________, but omitting any covenant, condition or restriction, if any, based on race, color, religion, sex, handicap, familial status, or national origin unless and only to the extent that the covenant, condition or restriction (a) is exempt under Title 42 of the United States Code, or (b) relates to handicap, but does not discriminate against handicapped persons.
Comment: You may use this exception if a specific instrument in the subdivision apparently creates a common scheme, even though the instrument does not describe the land.

Said instrument also provides that any violation thereof shall not defeat or render invalid the lien of a mortgage or deed of trust made in good faith and for value recorded __________________.
Comment: This exception may be added to the covenants exception if it provides that violation will not defeat good faith mortgages. The ALTA Form 9 endorsement also provides this coverage.

Said instrument also provides that any violation thereof shall not defeat or render invalid the lien of the insured mortgage.
Comment: This provision is appropriate only for the Loan Policy and only if the covenants provide that violations will not defeat the insured mortgage.

Said instrument also provides for a lien to secure assessments, which is subordinate to the lien of certain mortgages or deeds of trust made in good faith and for value.
Comment: Add this provision to the covenant exception only if the covenants subordinate the assessment lien to certain mortgages. You generally must also verify the assessments are paid current.

Said instrument also provides for a lien to secure assessments, which is subordinate to the lien of the insured mortgage.
Comment: This provision is appropriate only for the Loan Policy and only if the covenants subordinate the assessment lien to the insured mortgage. You generally must also verify the assessments are paid current.

"but omitting any covenant, condition or restriction, if any, based on race, color, religion, sex, handicap, familial status or national origin unless and only to the extent that the covenant, condition or restriction (a) is exempt under Title 42 of the United States Code, or (b) relates to handicap, but does not discriminate against handicapped persons."

Comment: Add this language to any exception to covenants if this language does not otherwise appear in the exception and if the restrictions contain racial or similar provisions. If the restrictions contain only racial or similar provisions, do not except to the instrument.

As said covenants, conditions, and restrictions have been amended or modified by the instrument recorded _______________.
Comment: Add this reference if the covenants have apparently been amended.

Among other things, said instrument provides for:
Comment: It is customary in some states to quote specific provisions of limited covenants. It is not necessary to do so if the exception refers to the instrument.

Note: You may add additional local exceptions here. Please consult with our underwriting personnel in preparing appropriate provisions.