NM Pending Improvements Endorsement Guideline 23
Explanation:The Pending Improvements Endorsement (NM 23) may be attached to an Owner's Policy issued in contemplation of immediate construction of improvements on the land evidenced by simultaneous issue of a Construction Loan Policy. An Owner's Policy insuring such contemplated improvements shall contain a Pending Improvements clause or endorsement. The amount of such policy may be the value of the land after the contemplated improvements are constructed, but only if the policy is endorsed with a Pending Improvements clause or endorsement.
We require the following:
1. All Owner's Policies shall be issued for the amount of the current sales price of the land and any existing improvements appurtenant thereto, except at the request of the insured, the cost of improvements immediately contemplated to be erected thereupon may be added to the amount of insurance.
2. If the Pending Improvements Endorsement is to be attached to the Owner's Policy, you must review evidence of the owner's intention to immediately construct improvements and the cost of the improvements to be constructed, including the simultaneous issuance of a Construction Loan Policy for the contemplated improvements.
3. The endorsement premium shall be $25.00 in addition to the premium charged for the policy.
The underwriting guidelines contained herein have been provided for general reference. The facts, circumstances, and location of the subject property should be considered when determining the issuance of the requested form or endorsement. Please note that all of the forms and endorsements included in this system may not be available in all states. Accordingly, please contact the appropriate Stewart Title Guaranty Company underwriting personnel in order to determine availability.
Compliance with the underwriting guidelines contained herein in no way obligates Stewart Title Guaranty Company to issue any form or endorsement.
This guideline applies to the following form(s):