STG Shopping Center Endorsement Guideline 1

Explanation:

This coverage is typically requested in connection with multiple owner shopping center developments. Normally, the owners of the various parcels of property within a shopping center will enter into an agreement under which covenants will be made for each other's benefit to do or not to do certain acts with regard to the use, repair, maintenance or improvement of, or payment of taxes and assessments on the property of the respective covenantors. This endorsement provides assurance that conforming covenants will be binding upon the covenantors and their successors in ownership, subject to the limitations contained in the endorsement.

Underwriting Requirements:

(1) This endorsement does not amend the title policy. It expands the coverage of the policy by insuring the binding effect of both negative and affirmative covenants benefiting land described in the title policy and burdening land Not included within the land described in the title policy.
(2) This coverage is only available in those states which have sufficient legal precedent establishing criteria essential for creation of covenants that run with the land and are binding upon subsequent owners. Senior Underwriting Counsel must tailor insurance requirements including the form of insurance coverage to fit state law requirements.
(3) This type of coverage shall not be issued without approval by Senior Underwriting Counsel.
(4) No insurance shall be issued in a form which would insure enforceability or compliance.