The American Land Title Association has posted a plethora of new and revised endorsements on its website,, and is welcoming comments before final approval and adoption of the endorsements currently scheduled for April 2, 2012.  The endorsements include  revisions to some current endorsements, as well as some totally new endorsements.  Today’s blog will deal with those endorsements that have been revised, as well as the new ALTA 3.2-06  and the new ALTA 28.1.  My next blog will deal with the new ALTA 35 Series, dealing with minerals and other subsurface substances, and the new ALTA 36 Series, dealing with energy projects.  For today, the revised and new endorsements to be discussed are:

  1. Revisions to the ALTA 9 Series, dealing with Covenants, Conditions and Restrictions.  All of the prior 9 Series endorsements are being withdrawn and replaced with revisions made necessary due to an erroneous interpretation of Section 1(b)(2) of the ALTA 9 in the Nationwide case .  201 1 WL 611802 slip op. at 27 (E. D. PA 2011).  ALTA endorsements 9-06, 9.1-06, 9.2-06, 9.3-06, 9.6-06, 9.7-06 and 9.8-06 have all been revised to:

(i)                  add a preamble to reassert the applicability of the policy terms,

(ii)                revise the insurance provisions to make the references to insured matters singular instead of plural (e.g., a covenant, condition or restriction),

(iii)               remove old Section 1(b)(2) from all of the endorsements and place a revised version into the a new ALTA 9.6-06, and

(iv)              eliminate the Section 2 coverage for encroachments and minerals from the 9.1, 9.2 and 9.3.

Two other 9 Series endorsements were re-numbered, the ALTA 9.7-06 and the 9.8-06 (Land under Development).  The current ALTA 9.4-06 and the 9.5-06 will be withdrawn and these form numbers will not be reused.


2.    Revisions to the ALTA 13 Series, dealing with Leasehold Estates, which replace the prior ALTA 13 Series Leasehold Endorsements.    The revisions include:

(i)            a minor revision to the definition of Personal Property so that it will be consistent with the definition of Severable Improvements in the new Energy Project Endorsements,

(ii)           valuation of the portion of the Land from which the Insured is Evicted, and items of loss relating to that portion of the Land,

(iii)          a new Section 4, recognizing that the endorsement does not insure as to mediation resulting from environmental damage or contamination.  This change is similar to provisions included in the new ALTA 36-06 and 36.2-06.


3.    New Endorsement 3.2-06 (Zoning – Land Under Development) is a new form in the ALTA 3 Zoning Series.  It allows the title company to provide zoning coverage for improvements that are not yet built, but are proposed.  The title company will require a survey with the proposed improvements shown as an overlay on the site and elevation plats.  The coverage is contingent on the improvements being built in accordance with the plans at Date of Policy.


4.    New Endorsement 28.1-06 (Encroachments – Boundaries and Easements) is a new form, similar to existing Endorsement 38-06 (Easement – Damage or Enforced Removal).  It provides coverage against loss by reason of the enforced removal of an improvement located on the insured Land which encroaches onto adjoin land or an easement.  It also contains a provision in Paragraph 4 where the title company can set out encroachments revealed by a survey and which the title company will not insure over.  This policy can be issued with either the Owner’s or Loan policy, and can be used for both residential and commercial property.

Next time, I will discuss the new 35 Series, dealing with Minerals and Other Subsurface Substances, and the new 36 Series, dealing with Energy Projects.