There are a wide range of endorsements that can be incorporated into an owner’s title insurance policy, but many investors don’t know which policies apply to their specific situation. In this article, we are going to break down the ALTA leasehold interest endorsement and when it can be used in an owner’s policy of title insurance on a commercial property.
ALTA Endorsement 13 for Leasehold Interest
The ALTA Endorsement No. 13 is used for an OWNER’s Policy insuring a leasehold estate. The ALTA 13.1 is used for a LOAN Policy insuring a leasehold estate. The policy may insure additional interests as well. The Leasehold endorsements expressly include the value of improvements added by the tenant in the calculation of loss because of an eviction by reason of a matter insured against by the policy. In addition, the endorsements include reasonable costs incurred by the insured to secure a replacement leasehold equivalent to the insured leasehold estate. Eviction is defined to include lawful dispossession and deprivation of use because of an insured matter. This endorsement replaced the leasehold policies, which are no longer available. The insured leasehold interest must be memorialized of record, either by recording the Lease or a Memorandum thereof
Commercial Title Insurance Experts in Minneapolis, MN
If you are looking for commercial title insurance experts in the Minneapolis area, you’ve come to the right place! At Commercial Partners Title Company, we have been providing elite title insurance coverage for our clients for decades. Our team is composed of escrow agents, title closers, underwriters, and more who can help you through all the details of your transaction. Contact us today to learn more about our philosophy and our many services. You can find us at our primary office located in downtown Minneapolis.