We think the ALTA 34 Endorsement is an important topic so we decided to re-visit this article from our June 2016 Quill in case you missed it. Enjoy!
Some of you may have noticed that we have been insuring over things these days in a slightly different way with the use of the ALTA 34 Endorsement. It used to be that if we agreed to insure over something, let’s say an old deed of trust, we would simply omit the exception or requirement, as the case may be, from the title binder. Well, times have changed. Our current underwriting guidelines require that we insure over the defect with the ALTA 34 Endorsement. In order to do this, we have to take an exception to the defect, in my example above, an old deed of trust, and then indicate that the matter will be covered with an ALTA 34 Endorsement. To see an example of an ALTA 34 Endorsement, click HERE. The affirmative language, covering the insured from loss or damage associated with the defect, comes from the ALTA 34 Endorsement.
Why the change? I have been told that the change in underwriting relates to claims made by certain insureds when the property is later resold. In my example above of an open deed of trust, claims occur when a new purchaser refuses to buy the property until the deed of trust is cancelled of record. In essence, the presence of the uncanceled deed of trust creates a marketability issue for the insured. For the underwriter, these claims seem to lack good faith. When the insured purchased the property, a request was made to insure over the deed of trust. So, after agreeing to the insured or the insured’s attorney’s request, the underwriter has to later pay a claim for lack of marketability.
Using the ALTA 34 Endorsement puts the purchaser – and the purchaser’s lender – on notice that there is a defect and that coverage is available as to the defect. However, the Endorsement has the effect of stripping the marketability coverage from the insuring provisions of the jacket, as to the identified defect. If you have any questions about the ALTA 34 Endorsement, please feel free to contact me.
Let’s get HAPPY!
Our annual CLE and Customer Appreciation Happy Hour is almost here. Tuesday, 9/17 in Raleigh & Wednesday, 9/18 in Charlotte. Click the links below for all the details.
Back-to-school is always an interesting time of year. To help you prep, we have a few tips to get you back into the school-year routine with or without kids!
1. Ease back into early bedtimes! Don’t wait until the first day of school, slowly up bedtimes a week or two before the big day and you’ll have much happier campers.
2. Prepare for school-year traffic! If you know you’ll be facing heavier traffic on your commute, fill up your phone with podcasts or audio books …and stay calm. We recommend THIS easy-listening, positive podcast for your morning commute.
3. Plan ahead! Look at your upcoming week, update your calendar and meal prep if that’s your thing. Being prepared for a new week is great for school or the work.
4. Shop for school supplies online! If you have a kiddo with a long list of supplies try ordering from Amazon Prime, Walmart or Target online. Target even has some school supply lists in their system! And if you don’t have kiddos or are empty nesters you might want to avoid these big box stores the week before school starts.
5. The dreaded school lunch! Make sure to buy everything you need for lunches in advance and keep snacks in an easy-to-grab location in your pantry. And if your kids are old enough to make their own lunches, why not give them a quick lesson and pass along that baton!