CLTA Assurances Concerning Affirmative Covenants in a Lease Endorsement Guideline 124.2
Explanation:This endorsement provides the lessee (under a leasehold policy) or a lender (under a leasehold loan policy) with assurances that the lessor's affirmative covenants contained in the lease wherein the lessor is to do any act or acts on other land owned by the lessor and contiguous to the lease land (such as use, repair, etc.) are binding on the lessor and its successors.
Underwriting Requirements:(1) This endorsement is most often used in conjunction with the development of a shopping center.
(2) The endorsement may be issued when all of the following requirements and conditions are met:
(a) The land to be affected by the covenants must be specifically described in the lease.
(b) The covenants contained within the lease must run with the land.
(c) The lease must be recorded in the county records where the property is located.
(d) A complete search of the burdened property must be made.
(3) Approval to issue this endorsement must be given by the appropriate Stewart Title Guaranty underwriting personnel.
(4) If negative and affirmative covenants are to be insured within the same transaction, use the CLTA 124.2 and CLTA 124.3 Endorsements.
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):