Example TX Insuring A Mortgage On A Subleasehold Estate 1
Mortgagee Policy No.: M-5842-
Date of Policy:
Amount of Insurance: $80,000.00
1. Name of Insured: ABC Corporation
2. The estate or interest in the land that is insured as encumbered by the insured mortgage is:
Subleasehold estate created by the lease executed by Peppermint Patti, sublessor, to Snoopy Brown, sublessee, dated December 1, 1992, recorded December 3, 1992 in Book XX, Page YY.
3. Title to the estate or interest in the land is insured as vested in: Snoopy Brown
4. The insured mortgage and assignments thereof, if any, are described as follows:
Mortgage dated December 1, 1992, recorded December 3, 1988, in Book XX, Page YY, executed by Snoopy Brown to ABC Corporation, stating that it secured the sum of $80,000.00.
5. The land referred to in this policy is described as follows:
LOT 1, BLOCK 1, ROYAL ACRES, a subdivision of land in Peanutsville City, Schultz County, State of Comics, according to the recorded plat thereof.
EXCEPTIONS FROM COVERAGE
Policy No. M-5842-
This policy does not insure against loss or damage (and the Company will not pay costs, attorney's fees or expenses) that arise by reason of the terms and conditions of the leases and easements, if any, shown in Schedule A, and the following matters:
1. The following restrictive covenants of record itemized below, but the Company insures that any such restrictive covenants have not been violated so as to affect, and that future violation thereof will not affect, the validity or priority of the mortgage hereby insured (Insert specific recording data or delete this exception.):
2. Any discrepancies, conflicts, or shortages in area or boundary lines, or any encroachments or protrusions, or any overlapping of improvements.
3. Standby fees, taxes and assessments by any taxing authority for the year 20__ and subsequent years, and subsequent taxes and assessments by any taxing authority for prior years due to change in land usage or ownership.
4. Liens and leases that affect the title to the estate or interest, but that are subordinate to the lien of the insured mortgage.
5. (Insert here all other specific exceptions as to superior liens, easements, outstanding mineral and royalty interests, etc.)
__________________________ ) Exceptions affecting the fee simple
__________________________ ) Exceptions affecting the subleasehold estate
Terms and provisions of the lease executed by Charlie Brown, as lessor, to Peppermint Patti, lessee, dated October 31, 1992, recorded November 1, 1992, in Book XX, Page YY.
No guidelines are available for this form at this time.