Monday, May 31, 2010

The T-19 Endorsement

We have all likely reviewed the T-19 Endorsement, but few of us really understand it.  In general, the T-19 Endorsement insures the lender for certain restrictions, encroachments and mineral situations that would otherwise be exceptions to the title policy.  Whether any particular matter is covered by the T-19 Endorsement would need to be determined on a case-by-case basis.  From a very practical and general perspective, however, I believe that the T-19 Endorsement is designed to allow a title insurance underwriter to insure certain matters based on a surveyor's assertions, thereby passing on liability under a policy to the surveyor.  For example, if a home was built five feet over a building set-back line, that would normally be an exception to the title policy.  However, with a survey showing that there is no building set-back violation (and a T-19 Endorsement), the title company will insure the set-back violation.  If a claim is later made regarding the set-back violation, the title company likely has recourse against the surveyor (or his errors and omissions insurance policy).

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