ALTA endorsements cover a wide range of potential issues. In this article, we are going to walk through the non-imputation and the truth in lending endorsements and how they can be best used in a title insurance policy.
This endorsement is used to protect the Insured, or specific named parties, from loss resulting from knowledge of specific parties, imputed to the protected parties as a matter of law. The protection is generally requested when the Insured is an entity, where the members of the entity have unequal day-to-day involvement in running the business. This is usually issued as a part of an Owner’s Policy, but could be issued on a Loan Policy.
Truth in Lending Endorsement
This endorsement insures the insured lender against the effect of the termination of the lien by reason of the valid exercise of the right of rescission. The right of rescission may apply if (1) the lien is a security interest in the borrower’s principal dwelling and (2) the loan is not a purchase money mortgage, and (3) the borrower is a natural person. NOTE: This endorsement only applies to a residential property.
Request a Copy of our Endorsement Book
If you’re interested in learning more about this and other ALTA endorsements, request a copy of our endorsement book today! For all questions related to title insurance, don’t hesitate to reach out to Commercial Partners Title today! Our team of escrow agents, title closers, and underwriters are here to help you through every stage of your transaction. For decades, we have been helping clients with their commercial real estate transactions. Contact us today to learn more about our title services and how we can help you through your next commercial transaction.