Industry News
March 16, 2010
Title Exception for Mechanics' Liens
The CLTA filed a revised Exhibit A of the Preliminary Report. The revision adds a sixth regional exception for mechanics' liens to the Western Regional Exceptions. All six of these Western Regional Exceptions are now reflected in the CLTA Preliminary Report Form, Exhibit A for the relevant policies.
Additionally, the CLTA Standard Coverage Policy jacket is being amended with the new regional exception, since this policy is the only filed policy that has the regional exceptions pre-printed as part of the policy jacket.
The CLTA also recently filed ALTA endorsements with the California Department of Insurance. The endorsements concern zoning for a completed structure (Form 3.1-06) and for a mortgage modification with subordination (Form 11.1-06). The zoning endorsement clarifies coverage with respect to the continued use, removal or alteration of a structure. The mortgage modification endorsement is designed for issuance when an intervening lien is subordinated by agreement to the insured mortgage being modified.
