CLTA Assurances Concerning Affirmative Covenants in a Lease Endorsement 124.2
Attached to Policy No.
STEWART TITLE GUARANTY COMPANY
HEREIN CALLED THE COMPANY
The Company hereby insures the insured against loss or damage which the insured shall sustain by reason of the failure of the covenants of the lessor in favor of the lessee, set out in Section(s), __________, __________ and __________ of the lease recorded ____________________ to do some act relating to the use, repair, maintenance or improvement of, or payment of taxes and assessments of the real property, or some part thereof, described as (description of burdened land of lessor) to be binding, as shown by the public records, upon the lessor and each successive owner, during his or her ownership, of any portion of such real property, and upon each mortgagee, or trustee or beneficiary of a deed of trust, whose interest is derived from the lessor or through any such successive owner thereof, while such mortgagee or trustee or beneficiary is in possession in such capacity.
Provided, however, that no insurance is hereby given should such covenants fail to bind a successive owner who derives title through: a) a tax deed; b) a foreclosure of a bond or assessment; c) enforcement of a federal tax lien; d) bankruptcy, as trustee or otherwise; e) a right or lien existing prior to the date of recording of the instrument containing said covenants.
This endorsement does not insure against loss or damage which the insured may sustain by reason of the non-performance of any said covenants.
This endorsement is made a part of the policy and is subject to all of the terms and provisions thereof and of any prior endorsements thereto. Except to the extent expressly stated, it neither modifies any of the terms and provisions of the policy and any prior endorsements, nor does it extend the effective date of the policy and any prior endorsements, nor does it increase the face amount thereof.
For issuing guidelines on this form, see Guidelines