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.
References
See Underwriting Manual,

15.36   Planned Unit Developments

15.36   Planned Unit Developments

17.40   Restraints On Alienation And Use (Illegal Or Unreasonable)

17.42   Restraints On Alienation And Use (Illegal Or Unreasonable)

3.76   Covenants, Conditions, And Restrictions

3.76   Covenants, Conditions, And Restrictions

8.04   Homeowners' Associations

8.04   Homeowners' Associations

9.12   Industrial Parks

9.12   Industrial Parks and Town Centers

Requirement

CCRR01 STGC

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.
References
See Underwriting Manual,

3.76   Covenants, Conditions, And Restrictions

3.76   Covenants, Conditions, And Restrictions

8.04   Homeowners' Associations

8.04   Homeowners' Associations

CCRR02 STGC

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.
References
See Underwriting Manual,

3.76   Covenants, Conditions, And Restrictions

3.76   Covenants, Conditions, And Restrictions

CCRR03 STGC

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.
References
See Underwriting Manual,

3.76   Covenants, Conditions, And Restrictions

3.76   Covenants, Conditions, And Restrictions

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.
References
See Underwriting Manual,

3.76   Covenants, Conditions, And Restrictions

3.76   Covenants, Conditions, And Restrictions

CCRX02 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. These Covenants, Conditions and Restrictions also provide that any violation thereof shall not defeat or render invalid the lien of the insured mortgage.
Comment: This exception is appropriate only for the Loan Policy and only if the covenants provide that violations will not defeat the insured mortgage.
References
See Underwriting Manual,

3.76   Covenants, Conditions, And Restrictions

CCRX03 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. As this instrument has been amended or modified by the instrument recorded _______________.
Comment: Use this exception if the covenants have apparently been amended.
References
See Underwriting Manual,

3.76   Covenants, Conditions, And Restrictions

3.76   Covenants, Conditions, And Restrictions

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).
References
See Underwriting Manual,

3.76   Covenants, Conditions, And Restrictions

3.76   Covenants, Conditions, And Restrictions

CCRX05 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. These Covenants, Conditions and Restrictions also provide that any violation thereof shall not defeat or render invalid the lien of the insured mortgage.
Comment: This exception is appropriate only for the Loan Policy and only if the covenants provide that violations will not defeat the insured mortgage.
References
See Underwriting Manual,

3.76   Covenants, Conditions, And Restrictions

CCRX06 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. As this instrument has been amended or modified by the instrument recorded _______________.
Comment: Use this exception if the covenants have apparently been amended.
References
See Underwriting Manual,

3.76   Covenants, Conditions, And Restrictions

3.76   Covenants, Conditions, And Restrictions

CCRX07 ALTA

Violation of Separate Covenants Exception Does

The Covenants, Conditions and Restrictions recorded __________________ also provide that any violation thereof shall not defeat or render invalid the lien of the insured mortgage.
Comment: This exception is appropriate only for the Loan Policy and only if the covenants provide that violations will not defeat the insured mortgage.
References
See Underwriting Manual,

3.76   Covenants, Conditions, And Restrictions

CCRX08 ALTA

Amendment of Separate Covenants Exception

As the Covenants, Conditions and Restrictions recorded __________________ have been amended or modified by the instrument recorded _______________.
Comment: Use this exception if the covenants have apparently been amended.
References
See Underwriting Manual,

3.76   Covenants, Conditions, And Restrictions

3.76   Covenants, Conditions, And Restrictions

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.
References
See Underwriting Manual,

3.76.7   Racial Restrictions

3.76.7   Racial Restrictions

CCRX10 STGC

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.
References
See Underwriting Manual,

3.76   Covenants, Conditions, And Restrictions

CCRX11 STGC

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.
References
See Underwriting Manual,

3.76   Covenants, Conditions, And Restrictions

CCRX12 STGC

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.
References
See Underwriting Manual,

3.76   Covenants, Conditions, And Restrictions

CCRX13 STGC

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.
References
See Underwriting Manual,

3.76   Covenants, Conditions, And Restrictions

CCRX14 STGC

Restrictions Based on Race, Color, Religion Sex

Provisions, if any, based on race, color, religion, sex, handicap, familial status or national origin are omitted.
Comment: Add this language to any exception to covenants if this language does not otherwise appear in the exception and if the restrictions contain racial or similar provisions. If the restrictions contain only racial or similar provisions, do not except to the instrument.
References
See Underwriting Manual,

3.76.7   Racial Restrictions

3.76.7   Racial Restrictions

CCRX15 STGC

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.
References
See Underwriting Manual,

3.76   Covenants, Conditions, And Restrictions

3.76   Covenants, Conditions, And Restrictions

CCRX16 STGC

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.

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

3.76   Covenants, Conditions, And Restrictions

3.76.7   Racial Restrictions

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