🧾 What Is a Title Endorsement in Real Estate?
A title endorsement is an amendment or addition to a title insurance policy that changes or expands coverage. Endorsements provide protection for unique property risks not included in the standard title policy.
How Title Endorsements Work
When a title insurance policy is issued, it covers standard ownership and lien risks. However, every property is different. A title endorsement customizes that coverage by adding or modifying terms to address specific circumstances, such as zoning, access, or survey issues. These endorsements ensure that both buyers and lenders are protected based on the property’s unique characteristics.
Common Types of Title Endorsements
- Access Endorsement: Verifies that the property has legal access to a public road.
- Zoning Endorsement: Protects against loss if the property violates current zoning laws.
- Survey Endorsement: Covers boundary or encroachment discrepancies found in a survey.
- Condo Endorsement: Provides coverage specific to condominium ownership.
- Environmental Protection Lien Endorsement: Protects against undisclosed environmental liens or cleanup obligations.
Why Title Endorsements Matter
Title endorsements give additional assurance to homeowners and lenders that their investment is secure. While not every endorsement is mandatory, some are required by mortgage lenders as a condition of closing. The cost of each endorsement varies by type and state but is generally a small fee compared to the protection it provides.