When issuing a Pennsylvania Title Insurance Loan Policy our purpose, simply, is to issue a PA title insurance policy protecting the lender against possible claims against the title. And like all insurance policies, whether title insurance, auto, life or home, the final policies have specific items that are covered and others that are specifically not covered (“EXCEPTED” from coverage). So what to do if the lender wants some items removed or other protections added? That’s accomplished by issuing Endorsements to the policy.
An endorsement is a change or modification. In Pennsylvania there are a number of standard endorsements which will be required by lenders to be included with the final Title Insurance policy. These are commonly referred to as the PA100/PA300/& PA900.
Pennsylvania Title Insurance Policy Endorsement 100 is sub-headed “No Apparent Violation of Restrictions”. Seems pretty self-explanatory. If the insured property has any covenants, conditions or restrictions that affect the title to the land, then this endorsement insures that they haven’t been violated. It also provides coverage for possible future violation. ($50.00)
Pennsylvania Title Insurance Policy Endorsement 300 is sub-headed the “Mortgage Survey Exception”. This deals with the standard language that is a part of a PA Loan Policy that denies coverage for “Discrepancies or conflicts in boundary lines, easements, encroachments, or area content which a satisfactory survey would disclose”. This endorsement specifically eliminates this language. It also provides coverage against possible loss by reason of any encroachment, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete survey. ($50.00)
Pennsylvania Title Insurance Policy Endorsement 900 is sub-headed “Environmental Protection Liens”. By adding this endorsement a lender is covered against loss or damage if an environmental protection lien is filed against the insured property by theUSA or Commonwealth of PA. An insured lender’s mortgage would normally be in a senior, first lien position against any other liens but an environmental protection lien might possible supersede the lender’s priority. Adding this endorsement to the PA Loan Policy provides additional coverage to the lender. ($50.00)
A few other typical lender required endorsements issued by our PA Title Insurance Company include Endorsements 810 (if a condominium) and 820 (if a planned unit development). These provide additional coverage that deal with specific documents, restrictive covenants, assessments and other matters that are unique to those types of properties. Variable rate mortgages or reverse mortgages also have endorsements available.
All of the Pennsylvania Title Insurance Policy Endorsements listed above are only issued in connection with a Loan Policy and for the benefit of the insured lender. Additionally, they pertain only to residential properties. If your transaction involves commercial real estate or if you, as a buyer, are interested in additional coverage on your PA Owner’s Title Insurance policy, then there are other potential endorsements available for purchase. We will make sure to post more blogs on commercial endorsements and other special endorsements in the coming weeks.
Trust our Pennsylvania Title Insurance company to provide the appropriate policy for you. Sometimes “one size” doesn’t “fit all”, know that we’ll work with you to endorse that initial title insurance policy, fine tuning it with endorsements to guarantee the specific coverage you desire. Still have questions? Feel free to give us a call as we have attorneys on staff to help determine your needs.
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