Each commitment and policy insuring a PUD must contain an exception similar to the following for the documents creating the PUD development:
“Terms, provisions, conditions, easements, restrictions, options, and liens created by and set forth in the declaration recorded [recording information]”.
“Any and all authority of the [describe] homeowner’s association to regulate and/or levy assessments against the subject property and rights of others in the common areas, if any.”
The agent must also determine that any and all assessments have been paid in full; otherwise, exception must be made in the title policy.
ALTA Endorsement Form 5 applies to loans made on a planned unit development or to an owner who buys in such development.
See also: