Summit County Real Estate Title and Endorsement Information
Transferring Title in Colorado
In Colorado, owner’s title insurance is customarily paid for by the seller per CO Statute. A title insurance policy protects owners and lenders against errors indeeds, forgery, fraudulent conveyances, mistakes in public record, errors in estate proceedings, and many other matters.
A mortgagee’s title insurance policy also insures the lender as to the priority, validity, and enforceability of the lien. The borrower will incur all mortgage title insurance costs.
What is an endorsement?
An endorsement is a rider attached to a Mortgage or an Owner Policy to expand or limit the policy coverage. The title policy is designed for standard real estate transactions. Attaching an endorsement to the policy adapts the coverage to meet the needs of the insured. By issuing an endorsement, the insurer may take on additional risk normally not covered under the policy. A premium is usually charged for issuing any endorsement.
In many cases, the title insurance company will add specific endorsements to a policy to cover additional risks based on the location of the property and the type of transaction. Many lenders require specific endorsements for certain loan types or for added coverage. Both the lender and the owner can request endorsements to the standard title policies in order to provide additional protections beyond the standard coverage.
Frequently Used Endorsements:
•FORM 100: Comprehensive Endorsement (Lender Coverage)
•FORM 115.1 (ALTA 4): Condominium Endorsement (Lender Coverage, ALTA 4.1 for Owner)
•FORM 115.2 (ALTA 5): Planned Unit Development (PUD) Endorsement (Lender Coverage, ALTA 5.1 for Owner)
•FORM 100.29, 100.30, 100.31, ALTA 9: Mineral Endorsement (Coverage for Owner, Lender, or both)
•FORM 103.1: Use of Easement (Lender or Owner Coverage)
•FORM 103.2: Encroachments on Adjoining Property (Lender Coverage, 103.2A for Owner)
•FORM 103.3: Encroachments on Easements (Lender Coverage, 103.3A for Owner)
•FORM 335.6 (ALTA 8.1): EPA Endorsement (Lender or Owner Coverage)
•FORM 281.1 (ALTA 6): Variable Rate Mortgage Endorsement (Lender Coverage)
•FORM 292.7 (ALTA 6.2): Negative Amoritization (Lender Coverage)
•FORM 107.12: Date Down Endorsement (Lender or Owner Coverage)
•FORM 110.5: Modification Agreement (Lender Coverage)