FL Form 9 Endorsement Guideline 1

Explanation:

This endorsement to the Loan Policy insures against violations of restrictions; encroachments over easements, building lines or property; and damage by reason of mineral development. It is similar to the ALTA Form 9 and other comprehensive endorsements.

Underwriting Requirements:

(1) Restrictions:

(a) Review all restrictions to verify that there are no forfeiture provisions unless the forfeiture provisions are expressly subordinate to the lien of the insured mortgage; otherwise, paragraph a(a) and paragraph 2 must be deleted.
(b) In order to give the coverage provided in paragraph 1(b)(1), review the restrictions to verify whether the existing use materially violates applicable restrictions. If so, except to the violation in Schedule B.
(c) Review the restrictions to verify whether the restrictions establish easements, liens for liquidated damages, private charges or assessments, options, or rights of first refusal to purchase. If so, these provisions must be separately and explicitly listed in Schedule B as noted in paragraph 1(b)(2) of the endorsement.
(d) Review the restrictions to verify that any maintenance lien created therein is expressly subordinate to the lien of the insured mortgage and that prior assessments are paid before closing. If there is a maintenance lien created by the restrictions which is not expressly subordinate to the lien of the insured mortgage, then you must delete paragraphs 1(a) and 2 of the endorsement.
(e) Review the official records of the county in which the property is located to determine that there are no notices of violations of restrictions relating to environmental protection.

(2) Encroachments:

(a) Secure a survey by an acceptable surveyor reflecting the current improvements. In the event that you are insuring a refinance, it may be possible to rely on an existing survey of the property certified to the current owner provided you obtain from the current owner an affidavit stating that there have been no improvements to the property or adjacent property which would affect the property lines, setback lines or easements of the insured property. In accordance with paragraph 1(b) which states ?Unless expressly excepted in Schedule B...?, you must specifically except in Schedule B to any encroachments over building lines, property lines, or easements reflected by the surveyor.
(b) In order to afford the affirmative coverage provided in paragraph 3(a), 4 and 5 of this endorsements as to damage by reason of removal of encroachments, the encroachments must be minor in nature and may not include an encroachment of any permanent improvements onto adjoining land unless the Company authorizes such coverage.

(3) Minerals:

(a) In order to provide the coverage of paragraph 3(b) by reason of damage to the surface by development of minerals on commercial property, you must verify that there are no outstanding minerals or that surface rights have been waived.