- July 16, 1993
- All Issuing Offices in Alabama, Alaska, Colorado, Connecticut, District of Columbia, Massachusetts, Nevada, Oregon, Pennsylvania, Rhode Island, Washington, West Virginia
- ALTA Condominium Endorsement 4.1
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.
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
THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.