Newsletter Archive

Issue #72, Winter 2008

ALTA 2006 Forms Now in Use!

As discussed in “Title Talk” No. 71 (Summer, 2007), the Commissioner of the New Jersey Department of Banking and Insurance [“NJDOBI” or “DOBI”] has approved the submission by the Rating Bureau [“NJLTIRB”] of the ALTA 2006 policies, commitments and certain endorsements in connection with same. The filing was effective on February 15, 2007. Under the original terms of DOBI’s approval, exisiting supplies of the current forms could still be used, at least until June 30, 2007. That deadline was subsequently extended until December 31, 2007. Thus, beginning on January 1, 2008, only the new forms will be available. Which forms are affected by the filing? The new policies are:

ALTA Loan Policy (06-17-06); and
ALTA Owner's Policy (06-17-06);
ALTA Short Form Residential Loan Policy (06-17-06).

The commitment forms are:
ALTA Commitment (06-17-06) [for commercial transactions); and
ALTA Plain Language Commitment (06-17 -06) [for residential transactions).

Endorsements include Nos. 9.3, 9.4, 9.5 (restrictions, etc.); 14.3 (reverse annuity loans) and 22 (location). In addition, existing endorsements have been reissued with the suffix -06 (or .06), where it was necessary to conform the text to the wording of the new policy forms.

It is noteworthy that ALTA has not created 2006 versions of the ["plain language"] ALTA Residential Owner's Policy (1987) or the ["enhanced coverage"] ALTA Homeowner's Policy (1998) or the ["enhanced coverage"] ALTA Expanded Coverage Loan Policy (2001). Thus, these policies, which are issued in connection with residential transactions, will remain in use for the foreseeable future. On the other hand, the ALTA Owner's Policy (2006) will be the "default policy" for commercial purchase transactions, and the ALTA Loan Policy (2006) will be the "default policy" for all loan transactions.

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