There are roughly 100 different title endorsements, and more than one type can be applied to a policy depending on several variables. So if you’re confused by title endorsements and title services, you’re not alone! Most people aren’t familiar with how these endorsements work until they need one. That’s why Residential Title and Escrow wanted to provide you with the whats and whys of title endorsement.
The Definition of Title Endorsement
When you break it down, title endorsements are basically limitations or additions of coverage that are attached to a title insurance policy. These endorsements will provide coverage that helps to make sure that the policy fits the needs of the person being insured for a specific transaction. Most mortgage companies will actually require endorsements on a Lender’s Title Insurance Policy, and borrowers are normally the ones who will request endorsements to protect themselves beyond regular coverage. If you’ve ever asked why someone would want a title endorsement, it’s because they’re looking for extra protection and it may be required.
Regulating Title Endorsements
The American Land Title Association, also known as ALTA, is the authority for different types of endorsements. ALTA regulates and sets guidelines. For specific states, there are also additional associations that regulate guidelines and endorsements.
The Most Common Title Endorsements
As we mentioned earlier, there are close to 100 different title endorsements. Some of the most common ones include:
- Alta Form 4 for Condominiums
- Alta Form 5 for Planned Unit Development
- Alta Form 6 for Adjustable Rate Mortgages and Negative Amortization Loans
- Alta Form 7 for Manufactured Housing
- Alta Form 8 for Environmental Protection
- Alta Form 9 for Restrictions, Encroachments, Minerals
- Alta Form 14.2 for Stand-Alone Second Mortgage and Future Advance
- Alta Form 14.3 for Reverse Mortgages
The fact that more than one endorsement can be applied depending on loan type, property type, and property location can make this whole process extremely complicated. It’s hard to know exactly what you’re supposed to do in this process, but working with the right title company will make all of the difference.
Working with a Maryland Title Company
When working with a title company, you want to make sure that the individuals you are directly working with understand all of the local, state, and federal laws. Because selling a home is so complicated, you need to be assured that you are working with professionals. You will want to know that the title company you work with has a track record of success, so make sure to take the time to seek out testimonials. You never want to rush anything when it comes to buying a home!
Want to learn more about title endorsements? Contact Residential Title and Escrow today!
At Residential Title & Escrow, we bring peace of mind to the settlement table. If you are looking for a title company to help you through the closing process, please contact us today! You can also fill out our simple online title request form and one of our knowledgeable representatives will get in touch with you promptly. Be sure to follow us on Facebook,Twitter, Pinterest, and Google+ to stay up to date on industry news and events.