Weeding through the vast array of ALTA endorsements can be overwhelming. We’re here to make it a little easier for you. In this article, we are going to talk about the ALTA endorsements for tax parcels and tax credits.
Tax Credit Endorsements
This Endorsement was created to address coverage required by tax credit investors in projects which have been awarded Tax Credits under the Internal Revenue Code or other law. The Endorsement provides affirmative coverage against loss if Tax Credits are lost solely as the result of a title defect. The ALTA 40 is used in a situation where the value of the Tax Credit is included in the Amount of Insurance. If the ALTA 40.1 Endorsement is used instead, the Policy can be issued in the amount of the Fair Market Value of the Land, with the Endorsement providing additional coverage for the value of the Tax Credits.
Tax Parcel Endorsements
This endorsement insures the insured owner or lender against loss if the land is taxed as part of a larger parcel or fails to constitute a separate tax parcel. The 18.1 additionally identifies the specific Tax Identification Numbers that relate to each identified parcel, that the parcels are not taxed with any other land, or that the easements, if any, described in Schedule A can be cut off by non-payment of real estate taxes or assessments against the servient estate. An alternative endorsement is available for situations that arise when a separate tax parcel will be available in a subsequent tax year. For example when a plat is filed or a tax parcel is split.
Commercial Title Company
Commercial Partners Title is a commercial title company with decades of experience facilitating transactions of all shapes and sizes. We can help you through all the steps of your commercial real estate transaction and make sure you are fully prepared when it comes time to sit down at the closing table. Reach out to our commercial real estate experts today at our office in downtown Minneapolis for help with your next transaction. We work with clients with properties in Minnesota and across the country!