CLTA Loss of Priority by Partial Reconveyance Endorsement Guideline 111

Explanation:

Explanation:
This endorsement provides the lender with insurance against the loss of lien priority of the insured deed of trust or mortgage on the remainder of the land secured by said deed of trust or mortgage after the recording of a partial conveyance. In California, the recordation of a partial conveyance on a portion of the land secured by a deed of trust for less than the reasonable value could prejudice the rights of third parties on the part of the land remaining (i.e., a greater portion of the debt is left against the remaining property than before the reconveyance).

Underwriting Requirements:

Underwriting Requirements:
(1) The requirements for issuance of this endorsement are as follows:
(a) A current title search of the remaining land showing 1) no encumbrances subordinate to the insured deed of trust or mortgage; and the owner of the land partially reconvened is the same as the owner of the remaining lands under the deed of trust or mortgage; and
(b) The partial reconveyance is in full compliance with the partial release clause in the deed of trust or mortgage.
(2) In states other than California, specific state law in this area must be reviewed and appropriate Stewart Title Guaranty underwriting personnel consulted.