CCR

Covenants, Conditions, and Restrictions

Review all covenants, conditions, and restrictions for easements, assessment liens, rights of first refusal, and rights of reverter or reentry. Any affirmative coverage or endorsement must be consistent with those provisions; for example, you should not insure against loss of priority or lack of priority of the lien if the covenants provide for a maintenance lien that is not subordinated.

Requirement

CCRR01 STG

Proof of Payment of Assessments

The Company requires a satisfactory statement from the Association or its agent stating the amount, if any, of the unpaid common or maintenance charges against the land to the date of closing. At that time, the Company may make additional requirements or exceptions.
Comment: Verify any assessments set forth in the covenants are paid current.

CCRR02 STG

Recorded Assessment Lien – Secure Release

Notice of assessment pursuant to the Declaration of restrictions in the amount of $_________, recorded _______________. The Company requires a satisfactory release for its review. At that time, the Company may make additional requirements or exceptions.
Comment: Use this requirement to secure a release of a recorded assessment lien.

CCRR03 STG

First Refusal

The covenants, conditions, and restrictions contain a provision requiring prior approval of the sale by the Association or a right of first refusal. The Company requires satisfactory proof that this provision has been complied with.
Comment: If the covenants contain a right of first refusal, secure approval of the proposed transaction. If the first refusal is not subordinate to a future mortgage foreclosure, modify any affirmative coverage or endorsement so that the Company does not insure against that right.

Exception

CCRX01 ALTA

Covenants Exception (With Option or First Refus

Terms, provisions, options, rights of first refusal, covenants, conditions, restrictions, easements, charges, assessments and liens provided in the Covenants, Conditions and Restrictions recorded __________________, but omitting any covenant, condition or restriction, if any, based on race, color, religion, sex, handicap, familial status, or national origin unless and only to the extent that the covenant, condition or restriction (a) is exempt under Title 42 of the United States Code, or (b) relates to handicap, but does not discriminate against handicapped persons.
Comment: Except to the terms of the covenants. This exception expressly refers to possible right of first refusal, easements, and assessment liens.

CCRX04 ALTA

Covenants Exception (No Option or First Refusal

Terms, provisions, covenants, conditions, restrictions, easements, charges, assessments and liens provided in the Covenants, Conditions and Restrictions recorded __________________, but omitting any covenant, condition or restriction, if any, based on race, color, religion, sex, handicap, familial status, or national origin unless and only to the extent that the covenant, condition or restriction (a) is exempt under Title 42 of the United States Code, or (b) relates to handicap, but does not discriminate against handicapped persons.
Comment: Except to the terms of the covenants. This exception expressly refers to easements and assessment liens (but not to possible rights of first refusal).
Comment: This exception is appropriate only for the Loan Policy and only if the covenants provide that violations will not defeat the insured mortgage.

CCRX09 ALTA

Restrictions Common to Subdivision

Covenants, conditions, and restrictions as set forth in instrument recorded ___________________, but omitting any covenant, condition or restriction, if any, based on race, color, religion, sex, handicap, familial status, or national origin unless and only to the extent that the covenant, condition or restriction (a) is exempt under Title 42 of the United States Code, or (b) relates to handicap, but does not discriminate against handicapped persons.
Comment: You may use this exception if a specific instrument in the subdivision apparently creates a common scheme, even though the instrument does not describe the land.

See Underwriting Manual

CCRX10 STG

Violation Not Affect Good Faith Mortgage

Said instrument also provides that any violation thereof shall not defeat or render invalid the lien of a mortgage or deed of trust made in good faith and for value recorded __________________.
Comment: This exception may be added to the covenants exception if it provides that violation will not defeat good faith mortgages. The ALTA Form 9 endorsement also provides this coverage.

CCRX11 STG

Violation Does Not Affect Insured Mortgage

Said instrument also provides that any violation thereof shall not defeat or render invalid the lien of the insured mortgage.
Comment: This provision is appropriate only for the Loan Policy and only if the covenants provide that violations will not defeat the insured mortgage.

CCRX12 STG

Assessment Lien is Subordinate to Good Faith Mo

Said instrument also provides for a lien to secure assessments, which is subordinate to the lien of certain mortgages or deeds of trust made in good faith and for value.
Comment: Add this provision to the covenant exception only if the covenants subordinate the assessment lien to certain mortgages. You generally must also verify the assessments are paid current.

CCRX13 STG

Assessment Lien is Subordinate to Insured Mortg

Said instrument also provides for a lien to secure assessments, which is subordinate to the lien of the insured mortgage.
Comment: This provision is appropriate only for the Loan Policy and only if the covenants subordinate the assessment lien to the insured mortgage. You generally must also verify the assessments are paid current.

CCRX15 STG

Amendment of Restrictions

As said covenants, conditions, and restrictions have been amended or modified by the instrument recorded _______________.
Comment: Add this reference if the covenants have apparently been amended.

CCRX16 STG

Specific Provisions

Among other things, said instrument provides for:
Comment: It is customary in some states to quote specific provisions of limited covenants. It is not necessary to do so if the exception refers to the instrument.

CCRX17 STG

Restrictions Based on Race, Color, Religion Sex

Covenants and Restrictions in ______________, but no reference is made hereby to any provision therein imposing restrictions based on race, color, religion or creed, sex, handicap, familial status, national origin, or ancestry, as such restrictions are void and unenforceable under New York law, federal law, or both.

CCRX18 STG

Alternate language - where no reference is made

Covenants and Restrictions in _____________, except for provisions which are void and unenforceable under New York law, federal law or both.

CCRX19 STG

Covenant and restriction insurance - (Mortgage

Policy insures that the within covenants and restrictions have not been violated, [in appropriate circumstances add: except as set forth herein,] by the improvements shown on the survey set forth herein, and any future violation will not result in a forfeiture or reversion of title.

CCRX20 STG

Covenant and restriction - Mortgage Only - anot

Policy insures that the within covenants and restrictions have not been violated by the existing improvements, and that said restrictive covenants do not contain any condition or right of re-entry nor provision for forfeiture under which the insured can be cut off, subordinated, or otherwise disturbed.

CCRX21 STG

Where covenants and restrictions are violated a

Covenants and Restrictions in (Liber, R.L., Reel) _____ (C)p ____ are violated in that __(state nature of violation)__, but policy will insure against enforcement of the covenant against the violation, as long as the building shown on the survey used herein shall stand in its present condition.

CCRX22 STG

Covenants and restrictions, insurance against e

Covenants and Restrictions in (Liber, R.L., Reel) _____ (C)p ____, but policy will insure against the successful outcome of any action which may be brought to enjoin the maintenance of the present building on the premises herein solely by reason of a possible violation of said restrictions provided the defense of such action is at the cost and expense of the insured by counsel selected or approved by this Company.

CCRX23 STG

Affirmative insurance on payment of premium (ex

Covenants and Restrictions in (Liber, R.L., Reel) _____ (C)p ____ but policy will insure that a modern ___-story apartment house erected out to the line of ___(Road)___ and setting back ____ feet from the line of ___(Boulevard)____ will comply with said covenants and restrictions and that the erection thereof will not be enjoined, provided that the defense of such action is at the cost and expense of the insured, by counsel selected or approved by this Company.

CCRX24 STG

On mortgage insurance where there is no survey

Covenants and Restrictions in (Liber, R.L., Reel) _____ (C)p ____. Any present or future violation of said covenants and restrictions will not result in a forfeiture or reversion of title to the premises insured hereunder.

CCRX25 STG

Reverter in covenants and restrictions - no pre

The Covenants and Restrictions set forth in deed made by __(name)__ to __(name)__, dated __/__/__, recorded __/__/__ in (Liber, R.L., Reel) _____, (C)p ____, contains a provision by which title may revert in the event of a future violation thereof. Said right to claim title by reverter may be released by obtaining an instrument expressing such purpose from __(name)__, or from all that person’s distributees (as distinguished from devisees).

CCRX26 STG

Where instrument requires premises to be used f

The Covenants and Restrictions set forth in deed made by __(name)__ to __(name)__, dated __/__/__, recorded __/__/__ in (Liber, R.L., Reel) _____, (C)p ____, provides that the premises conveyed be used __(set forth the facts relating to limited use)__. In the event the premises herein are used for other purposes, the title to said premises may revert to the grantor. Said right to claim title by reverter may be released by obtaining an instrument expressing such purpose from __(name)__, or from all that person’s distributees (as distinguished from devisees).

CCRX27 STG

Reverter in Covenants and Restrictions - now v

The Covenants and Restrictions set forth in deed made by __(name)__ to __(name)__, dated __/__/__, recorded __/__/__ in (Liber, R.L., Reel) _____, (C)p ____, have been violated in that __(state facts)__. By reason of such violation, it may be claimed that title has reverted. Said right to claim title by reverter may be released by obtaining an deed instrument expressing such purpose from __(name)__, or from all that person’s distributees (as distinguished from devisees).

CCRX28 STG

Premises to be used for a specific purpose - no

The Covenants and Restrictions set forth in deed made by __(name)__ to __(name)__, dated __/__/__, recorded __/__/__ in (Liber, R.L., Reel) _____, (C)p ____, provides that the premises conveyed be used __(set forth the facts relating to limited use)__. Said premises are now being used for other purposes than those specified in the deed. By reason thereof, it may be claimed that the title to said premises may have reverted. Said right to claim title by reverter may be released by obtaining a deed instrument expressing such purpose from __(name)__, or from all that person’s distributees (as distinguished from devisees).

CCRX29 STG

Covenants in closing deed

Terms, covenants and conditions contained in the closing deed will be excepted.

Note: You may add additional local exceptions here. Please consult with our underwriting personnel in preparing appropriate provisions.