Title Insurance Basic Manual

T-19 Restrictions, Encroachment, Mineral Endorsement
Cost: $25 minimum or 5% of the basic rate on residential and 10% of the basic rate on non-residential.
When Needed: Required by most lenders on the Mortgagee's Title Policy.
Protects: Gives the lender further coverage with regards to survey encroachments, mineral right and/or restrictions set out on Schedule B.

T-19.1 for non-residential Owner Title Policy for 15%
T-19.1 Restrictions, Encroachments, Mineral Endorsement Cost: $25 minimum or 15% of the basic rate.
When Needed: Can be issued only with the T-1 non-residential Owner Policy. Required by many buyers on commercial transactions.
Protects: Gives the property owner coverage for certain restriciton violations, encroachments of existing improvements and damage from mineral development.

T-14 First Loss Endorsement
Cost: $25
When Needed: Can be issued with the T-2 Mortgagee Policy on non-residential property. Other property than that described in the Mortgagee Policy must secure payment of the loan.
Protects: Relates to the payment of loss by the insurance company in the event a claim exceeds 10% of the policy amount. The insurance company may not require the lender to accelerate the indebtedness or pursue its remedies against the other collateral securing the loan.

T-15 Last Dollar Endorsement
Cost: $25
When Needed: Can be issued with the T-2 Mortgagee Policy on non-residential property. Other property than that described in the Mortgagee Policy must secure payment of the loan. This endorsement is typically used when the policy amount will be for less than the amount of the loan due to the other collateral.
Protects: Relates to the payment of loss by the insurance company in the event of a claim and provides that the insured will have full covereage until the loan payments have reduced the principal balance of the loan below the Mortgagee Policy amount.

T-16 Aggregation Endorsement
Cost: $25
When Needed: Can be issued when an underwriter is simultaneously issuing multiple Mortgagee Policies on separate deeds of trust securing the same loan.
Protects: Relates to the payment of loss and aggregates the insurance amount of each policy into one liability amount.

T-17 Planned Unit Development Endorsement
Cost: $25
When Needed: Required by most lenders on the Mortgagee's Title Policy when the property lies within a Planned Unit Development.
Protects: Gives lender further coverage with regards to restrictive covenants, HOA dues, enforced removal of existing structures and right of first refusal.

T-23 Access Endorsement
Cost: $100 per policy
When Needed: Can be issued with a Mortgagee Policy and the T-1 Owner Policy on non-residential improved property.
Protects: Gives the lender and/or property owner coverage if the property does not have actual vehicular and pedestrian access to the physically open public street named in the endorsement.

T-24 Non-Imputation Endorsement
Cost: $25 minimum or 5% of the basic rate
When Needed: Can be issued concurrently with a T-1 Owner Plicy on non-residential property. Is issued when a new investor is acquiring an interest in an entity property owner.
Protects: Insures that the underwriter of the Owner Policy will not deny liability because of the knowledge or action of an existing investor or partner regarding a title defect, adverse claim encumbrance or lien, provided the new investor or partner acquires its interest without knowledge of the defect and for value. Protects: Protects the lender in case there are any existing liens regarding environmental issues.

T-39 Balloon Endorsements
Cost: $25
When Needed: Required by the mortgage company as an endorsement to the Mortgagee's Title Policy whenever the borrower has a Balloon note.

T-25 Contiguity Endorsement
Cost: $100 per policy
When Needed: Can be issued concurrently with a Mortgagee Policy and the T-1 Owner Policy on non-residential property. the title policy must cover multiple tracts of land and the title company must be provided with a survey.
Protects: Insures that all of the tracts of land described in the policy are contiguous, with no gaps or strips separating them.

T-26 Additional Insured Endorsement
Cost: $25 minimum or 10% of the basic rate
When Needed: Can be attached to a previously issued T-1 or T-1R Owner Policy.
Protects: Will add a new owner as an isnured under the title policy if the new owner is the trustee and/or beneficiaries of a trust to whom the original insured transfers title after policy date or is a partner, memeber or stockholder that acquires the interest of the other owners of the insured puruant to a written agreement in effect as of policy date or is a family partnership of family corporation composed solely of the insured and members of the insured’s family.