CLTA News
September 21, 2010
CLTA Approves Modified Inter-Underwriter Indemnification Agreement
The CLTA Board of Governors has approved the ALTA Model Inter-Underwriter Indemnification Agreement with modifications for use in California. The original model agreement was developed by ALTA to provide mutual indemnities for certain liens and defects.
Modifications to the ALTA form include:
- Adding a provision that the agreement does not apply to mortgage or deeds of trust which appear from the record to secure a revolving line of credit or equity line of credit loan.
- Removing the application to child support liens and specifying that the agreement does not apply to installment judgments.
- Removing the reference to municipal taxes and adding additional items the agreement shall not apply to, such as: (i) any lien securing the payment of ad valorem taxes or (ii) any municipal, city or county lien, including but not limited to weed or sanitary liens, demolition liens, street assessment or paving liens or utility service liens.
- Removing a clause allowing for other local liens or issues the parties choose to be subject to the indemnity.
All subscribers to the CLTA Policies and Endorsements Forms book will recieve copies of these forms in the next forms book update.
