ALTA endorsements are many and cover a wide range of potential issues. In this article, we are going to focus on the commercial lender group, first loss & insured mortgage recording endorsements
Commercial Lender Group Endorsement
This endorsement is used when a group of lenders participates in a single loan. It protects against loss caused by the invalidity, unenforceability, or loss of priority of the loan because of the transfers of a portion of the indebtedness by the various participants.
First Loss Endorsement
This endorsement may be used when the security for a loan consists of multiple parcels of real estate. It allows the insured lender to make a claim against the policy without foreclosing on all of the collateral. With this endorsement the insured lender may receive compensation from the title insurer before the amount of an actual loss from a title defect is determined by foreclosing on and then selling all of the collateral.
Insured Mortgage Recording – Loan Endorsement
This endorsement is issued when a policy is issued at the time of closing and the Insured Mortgage is recorded subsequent to the closing. Without changing the effective date of the policy, this endorsement simply modifies the description of the Insured Mortgage to include the recording information.
Partner with our Experts for Your Next Commercial Transaction
Commercial Partners Title Company underwrites commercial title insurance for properties of all shapes and sizes. We have decades of experience facilitating transactions throughout the state of Minnesota and across the United States. Contact us today to learn more about the full extent of our services and how we can help you through the ins and outs of your next commercial real estate transaction. You can find us at our primary offices located in the heart of downtown Minneapolis.