In this article, we are going to focus on the ALTA commercial participation interest endorsement and when it can be used when underwriting title insurance policies.

ALTA Commercial Participation Interest Endorsement

ALTA Endorsement 30.1-06 is designed for loan policies for commercial transactions in situations where the loan agreement includes a participation interest. The participation interest is based on the equity in the Title, increase in value of the Title or cash flow as defined in the loan documents. The endorsement protects the lender against loss or damage by reason of (a) the invalidity or unenforceability of the lien of the Insured Mortgage resulting from the provisions of the Insured Mortgage or Loan Documents containing a participation interest; (b) lack of priority of the lien of the Insured Mortgage at Date of Policy, securing (i) the unpaid principal balance of the loan and (ii) the interest on the loan, including the participation interest, if any, which lack of priority is caused by the provisions in the Loan Documents for payment or allocation to the Insured of any participation interest.

Request Our Free Endorsement Book

For more information on specific ALTA endorsements that can be utilized in lender and owner title insurance policies, request a copy of our free endorsement book. If you have specific questions about a property, don’t hesitate to reach out to our experts. Commercial Partners Title has been facilitating commercial transactions for decades. We have a vast array of knowledge that can be utilized to ensure that your transaction goes off without a hitch. Contact us today at our downtown Minneapolis office to learn more!

Zoning endorsements are some of the most commonly used ALTA endorsements in the realm of commercial title insurance. In this article, we are going to offer a brief overview of zoning endorsements for undeveloped land, developed land, and land under development.

ALTA Zoning Endorsements

All versions of this endorsement insure the insured owner or lender of the applicable zoning classification and that a particular use is authorized.

The ALTA 3.1 Endorsement provides additional coverage, insuring against a final court order prohibiting the present structure, and requiring removal or alteration of the present structure, because of violation of the zoning ordinance as to area, width or depth of the land as a building site, floor space area of the structure, setback of the structure, height of the structure or number of parking spaces.

The ALTA 3.2 Endorsement provides the coverage of an ALTA 3.1 Endorsement with respect to specified future improvements, which are detailed on a set of plans and specifications identified in the endorsement, provided that the improvements are constructed consistent with the plans and specifications.

Commercial Partners Title Company

If you’d like more in-depth information about these zoning endorsements (as well as other ALTA endorsements), request a free copy of our endorsement book. Get help with your next commercial transaction today by contacting Commercial Partners Title. Our team consists of escrow agents, title closers, and underwriters who are well-equipped to help you through all the details of your commercial transaction. We have decades of experience work with clients on all types of real estate transactions and can help ensure that you are prepared for the closing table. Contact us today at our downtown Minneapolis offices to learn more about our services and how we can help you through your transaction.