What’s New with the 2006 ALTA Owner’s Policy:

1. The owner’s policy includes post policy coverage for the following events:

* Creditor’s rights protection against fraudulent or preferential transfer of title occurring prior to the insured transaction.

* Title defects created or attached or recorded in the Public Records subsequent to Date of Policy and prior to the recording of the deed or other instrument of transfer in the Public Records (GAP Coverage).

2. The owner’s policy addresses emerging technology issues created through electronic document, electronic recordings and transferable mortgages through systems similar to MERS.

3. Express coverage for some matters involving governmental regulation, governmental police power and eminent domain.

4. General survey coverage relating to encroachments, encumbrances, violations, variations or adverse possession (which may be negated through an exception on Schedule B).

5. Coverage relating to real estate taxes or assessments imposed on the Title by a governmental authority due or payable, but unpaid.

6. Definition of “Insured” includes a successor by dissolution, merger, consolidation, distribution, reorganization or by a conversion to another type of entity.

7. The requirements for filing a claim no longer require the owner to provide proof of loss, however, proof of loss must be provided if requested by the title company.

8. Automatic increase in Amount of Insurance by 10% if the insurer chooses to litigate or seek to eliminate the defect but is unsuccessful.

9. The Coinsurance contract provision has been deleted.

10. The arbitration provision applies the Title Insurance Arbitration Rules of the American Land Title Association.  Either party may invoke arbitration for transactions under $2 million but both parties must agree to arbitration for transactions over $2 million.

11. Added new “Schedule A” placeholders for the name and address of Title Insurer and property address reference of the property being insured.

What’s New with the 2006 ALTA Short Form Policy:

This policy is designed to replace the existing 1992 ALTA Short Form Loan Policy and is an alternative to the standard “long form” 2006 ALTA Loan Policy.   Since the 2006 ALTA Short Form Residential Loan Policy incorporates the language on the 2006 ALTA Loan Policy, the following are changes to the Short Form Policy that are not address in the 2006 Loan Policy:

1. The 2006 Short Form requires a specific policy date and time, does not include the "which ever is later" provision in Schedule A.

2. Eliminates Property address in description of land in Schedule A but rather refers to the  land described in the Insured Mortgage.

3. The ALTA Short Form jacket incorporates the terms and provisions of the 2006 ALTA Loan Policy.

4. Allows for the incorporation of additional endorsements by use of a checkbox of the following endorsements: 

ALTA ENDORSEMENT 4 (Condominium)
ALTA ENDORSEMENT 5 (Planned Unit Development)
ALTA ENDORSEMENT 7.1 (Manufactured Housing–Conversion; Loan)
ALTA ENDORSEMENT 14 (Future Advance–Priority)
ALTA ENDORSEMENT 14.1 (Future Advance– Knowledge) [Witness clause optional]
Note: the ALTA 7.1 endorsement is newly proposed.

What’s New with the 2006 ALTA Loan Policy:

1. The loan policy adds some post policy coverage for the following events:

  * Insures priority of the Insured Mortgage over construction advances for work contracted before the Date of policy.  In many states, this coverage would be limited by the mechanic’s lien laws of that state.

  * Creditors rights protection against fraudulent or preferential transfer of title occurring prior to the insured transaction.

  * Title defects created or attached or recorded in the Public Records subsequent to Date of Policy and prior to the recording of the deed or other instrument of transfer in the Public Records (GAP Coverage).

2. The loan policy addresses emerging technology issues created through electronic document, electronic recordings and transferable mortgages through systems similar to MERS.

3. Governmental regulation, governmental police power and eminent domain coverages have been
expanded.

4. General survey coverage relating to encroachments, encumbrances, violations, variations or adverse possession has been added.

5. Coverage relating to real estate taxes or assessments imposed on the Title by a governmental authority due or payable, but unpaid, has been added.

6. Definition of “Indebtedness” has been expanded to allow a lender to include future advances as a loss when filing a claim.

7. Definition of “Insured” has been expanded to include a successor by dissolution, merger, consolidation, distribution, reorganization or by a conversion to another type of entity.

8. The requirements for filing a claim no longer require the lender to provide proof of loss, however, proof of loss must be provided if requested by the title company.

9. Added automatic increase in Amount of Insurance by 10% if the insurer chooses to litigate or seek to eliminate the defect but is unsuccessful.

10. The “Liability Noncumulative” provision which was an issue for policies issued to the Small Business Administration has been eliminated. 

11. The arbitration provision has been amended to apply the Title Insurance Arbitration Rules of the American Land Title Association.  Either party may invoke arbitration for transactions under $2 million but both parties must agree to arbitration for transactions over $2 million.

12. Added new “Schedule A” placeholders for the name and address of Title Insurer and property address reference of the property being insured.

13. Added check the box provisions for incorporation of the following endorsements:

ALTA 4 - Condominium
ALTA 4.1
ALTA 5 – Planned Unit Development
ALTA 5.1
ALTA 6 – Variable Rate
ALTA 6.2 – Variable Rate/Negative Amortization
ALTA 8.1 – Environmental Protection
ALTA 9 – Restrictions, Encroachments, Minerals
ALTA 13 – Leasehold Loan
ALTA 14 – Future Advances/Priority
ALTA 14.1 – Future Advances/Knowledge
ALTA 14.3 – Future Advances/Reverse Mortgage
ALTA 22 - Location