LEASES

Occasionally, you may be asked to issue a policy of title insurance insuring a tenant’s leasehold interest or a leasehold mortgage interest. There are specific ALTA Leasehold Owner’s and Loan Policies which should be used in these instances. Because Leasehold Policies are somewhat unusual, forms of these documents may not have been included in your Old Republic Title Policy Preparation Kit. If this is the case, you can obtain the necessary documents from the local office.

When we forward the leasehold policy forms to you, we will include an instruction sheet outlining the proper way to complete the forms. As a preview of the coming attractions, please note that Item No. 3 of Schedule A must be changed to reflect that the interest to be insured is "Leasehold," not "Fee Simple.” An exception must be taken on Schedule B to the terms and provisions of the underlying lease. The name of the insured owner is the tenant. The name of the insured lender is the leasehold mortgagee.

As indicated, you will receive more in depth instructions in the event that it ever becomes necessary for you to issue a leasehold policy. In the meantime, if you have any questions, contact your local office.