The following conditions must be met when issuing the ALTA 5 PUD Endorsement:
1. A review of the restrictions must disclose that:
a. There are no violations of the restrictions.
b. The restrictions do not contain any forfeiture or reversionary provisions (unless expressly subordinate to the lien of the insured mortgage).
c. Any provision for assessment liens must specifically state that the lien is subordinate to the lien of the insured mortgage. (If it does not, paragraph 2 of the endorsement must be deleted.)
2. Any prior maintenance assessment secured by a lien in the restrictions are brought current and/or paid in full.
3. A current, accurate survey must be provided. Upon review, it must determine that there are no encroachments or violations of restrictions (setback lines, easements, etc.).
4. Verification of compliance and estoppels letter from the condominium association with regard to the right of first refusal to purchase the unit and its common elements for this or any prior transaction.
A sample PUD Endorsement form (ALTA Endorsement 5.0 form).
A sample PUD Endorsement form (ALTA Endorsement 5.1 form).