When purchasing property, title insurance protects you against undisclosed risks from past ownership, such as unpaid taxes, forged documents, or unknown heirs. However, a standard title insurance policy has limitations that may leave certain risks uncovered.
A title endorsement list presents optional protections, or “endorsements,” that can be added to your policy to address these gaps. These endorsements are standardized forms created by the American Land Title Association (ALTA) and offer tailored coverage for issues specific to your property.
Common endorsements include:
- Zoning Endorsement (ALTA 3.1-06): Verifies that the property’s current use complies with zoning laws—important if you plan to operate a business or if zoning is complex.
- Access and Entry Endorsement (ALTA 17-06): Ensures legal access to your property from a public road, critical if your land is landlocked or accessible by private roads.
- Encroachment Endorsement (ALTA 28.1-06): Protects against encroachments such as a neighbor’s fence or structure crossing property lines.
- Covenants, Conditions & Restrictions (CC&Rs) Endorsement (ALTA 9-06): Shields you from financial loss if previous owners violated homeowners’ association rules.
Your lender will typically require certain endorsements to protect their loan interest—commonly the Access and Entry endorsement. You may choose additional endorsements to protect your personal property interests.
The cost of endorsements generally ranges from $25 to $200, a small upfront fee compared to potential legal expenses from uncovered risks.
Remember, endorsements must be selected and purchased at closing; they cannot be added afterward because title insurance covers past events only.
For more detailed information, see our Title Endorsement article or refer to the American Land Title Association (ALTA) website. You can also explore related topics such as title insurance and property title searches.
By understanding and using a title endorsement list, you can customize your title insurance to better protect your investment and avoid unforeseen legal issues linked to your property’s history.
