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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

  • work Practice Area

    Real Property - Finance

Date & Time
  • event Date

    Tuesday, March 7, 2023

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.

$347.00
CLE
ALL

This CLE webinar will analyze various title issues of particular concern to lenders, and the title endorsements which can be obtained to address various risks and contingencies. The panel will also discuss the types of loan modifications that require endorsement to an existing loan policy.

Faculty

Micah J. Halverson
Partner
Kutak Rock LLP

Mr. Halvorson focuses his practice on real estate and corporate finance matters, and he serves as a member of the firm's Executive Committee. He has worked on teams tasked with review and negotiation of commercial office leases including non-REIT landlords and has represented REITs in healthcare real estate acquisition, development and leasing.  Mr. Halvorson leads a team of lawyers who serve as lead counsel to a national bank, assisting their community development lending platform to provide comprehensive lending services in affordable multifamily housing construction utilizing LIHTCs. His banking team also represents multiple super-regional banks in their general commercial lending and healthcare lending platforms, including loans to finance senior living, skilled-nursing, retirement communities and healthcare mergers and acquisitions.

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Jeffrey R. Escobar
Partner
Troutman Pepper Locke LLP

Mr. Escobar advises lenders, sponsors, investors, project companies, public and private utility companies, private equity funds, joint ventures, institutional owners, and developers across the U.S. and the Americas. He assists clients in deploying capital for debt and tax-equity project financing, M&A, development, and sale-leaseback of large-scale renewable energy and energy transition projects. This includes solar, wind, geothermal, green hydrogen, and alternative energy, as well as battery energy storage, infrastructure, and transportation projects. Mr. Escobar leads complex project financed infrastructure, renewable energy, and energy transition-related projects; guides large commercial real estate development and construction finance, design, engineering, and construction transactions; manages real estate development and construction concerns of energy, infrastructure, transportation, commercial, energy transition, and renewable energy projects; navigates real estate and construction concerns in public-private partnerships; provides project support and claims dispute avoidance; and mitigates real estate and environmental risks.

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Lawrence S. Glosser
Partner
Ahlers & Cressman, PLLC

Mr. Glosser’s primary focus is real estate, business, and corporate law.  His practice combines transaction and litigation. He has been actively involved in the real estate industry as a broker, manager, developer and attorney since 1978. Mr. Glosser is thoroughly familiar with all aspects of real estate transactions and financing. He brings his entrepreneurial experience to the practice of law, enabling him to understand both the legal and business issues presented in each transaction. As an attorney, he assists clients with understanding and evaluating legal issues associated with business transactions, enabling clients to analyze risk, and make informed business decisions. Mr. Glosser is a frequent speaker on a variety of real estate topics, both locally and nationally.

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Description

Title insurance can figure heavily in the closing of a commercial mortgage loan. Lender's counsel must have a thorough understanding of the endorsements that are available to cover various title issues at the property level. Certain features or modifications of a loan can also affect title insurance coverage, so counsel must ensure that appropriate endorsements or title policy modifications are obtained to address those contingencies.

The ALTA 9 or "Comprehensive" endorsement insures against loss or damage resulting from violations of the deed restrictions, encroachments, and set back lines. Certain endorsements address other property-specific title issues, such as the ALTA 3.3 endorsement for improved property where there is known nonconforming use, the ALTA 8.1-06 endorsement relating to environmental protection liens, and the ALTA 28 endorsement which provides coverage against forced removal or alteration of improvements under existing easements.

Endorsements relating to the financing structure must also be considered. There are future advances endorsements for credit line loans and for obligatory and nonobligatory advances. Construction loan endorsements are available in most states, but title updates may be necessary prior to each disbursement. A balloon mortgage endorsement protects the lender against the unenforceability of the lien due to the exercise of a conditional right to refinance, an extension of the loan term, or a change in the rate of interest.

Listen as our authoritative panel discusses the foregoing title endorsements and the legal due diligence which must be conducted to determine the need for each. The panel will also discuss when title endorsements are needed in connection with assignment or amendment of an existing loan.

Outline

  1. How loan title policies differ from owners policies
  2. ALTA 9 comprehensive endorsement: conditions for issuance
  3. Property-specific endorsements
    1. ALTA 3.3 -- zoning; nonconforming use
    2. ALTA 8.1-06 -- environmental protection liens
    3. ALTA 28 -- forced removal or alteration of improvements under existing easements
    4. ALTA 7 -- manufactured housing
    5. ALTA 5 -- planned unit development
  4. Endorsements relating to financing terms
    1. Usury endorsement
    2. ALTA 32 and 33 -- construction advances
    3. Future advances endorsements
    4. Baloon mortgage endorsement
  5. Title updates and endorsements in connection with loan assignments and modifications

Benefits

The panel will review these and other important issues:

  • What does the ALTA 9 comprehensive endorsement cover, and what other types of endorsements should be part of every loan policy?
  • What are the prerequisites for a zoning endorsement, and how should nonconforming uses be addressed?
  • When should an ALTA 28 endorsement be required?
  • What kinds of loan amendments might require an endorsement or update to a loan policy?