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Attorney Spotlight |
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Katie G. O'Brien, Esq. |
Katie's practice areas include finance, real estate, contracts and corporate law. Katie assists commercial lenders with loan documentation and closing issues and with the drafting of corporate and finance documents. Katie also advises small businesses on regulatory and licensing matters at both the state and federal levels, as well as corporate governance and transactional matters.
Katie is admitted to practice before the Supreme Courts of Pennsylvania and New Jersey. She is a member of the American Bar Association, the Pennsylvania Bar Association, and the Philadelphia Bar Association.
Katie is a graduate of the Pennsylvania State University, where she graduated with Distinction and earned a Bachelor of Science degree, and Temple University Beasley School of Law, where she earned a Juris Doctor degree and was a member of the Temple University Political and Civil Rights Law Review.
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TITLE INSURANCE: ENDORSEMENTS FOR SPECIFIC SITUATIONS - ACCESS
By Amy R. Brownstein, Esq.
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Several months ago I discussed variations of the standard endorsements that are obtained in connection with most loan transactions requiring title insurance. This month I would like to focus on two endorsements that may be desirable to address the situation where there is potentially a lack of access to property. These endorsements are the ALTA Endorsement 17 (Access and Entry) and the ALTA Endorsement 17.1 (Indirect Access and Entry).
Upon occasion, we receive a title commitment that includes an exception for possible lack of access of the property to a public street. Such an exception immediately raises the possibility of a marketability issue, i.e., the possibility that, in the event of a default, it may negatively impact the value of the lender's collateral by making it impossible or prohibitively expensive to sell a property to which there is no legal access. In such a situation, it is advisable to obtain title insurance that insures access to the property. Either the ALTA Endorsement 17-06 and 17.1-6 may be useful in such a circumstance.
The ALTA Endorsement 17 insures that the property has access to a public street. Specifically, it insures that the land abuts a named street, that the street is physically open and publicly maintained, that the land has actual pedestrian and vehicular access to and from the street, and that the insured has a right to use existing curb cuts or entries along the abutting street. This endorsement will only be available if the title company is able to determine, by inspection, survey or otherwise, that the requisite access actually exists.
When the ALTA Endorsement 17 is not available, i.e., if the property does not have access to a public street, the ALTA Endorsement 17.1 might be obtainable. This endorsement insures that the land abuts an easement that has access to a named street, that the street is physically open and publicly maintained, that the easement provides the land with actual pedestrian and vehicular access to the street, and that the insured has a right to use the easement and the existing curb cuts along the portion of the street abutting the easement for access to the property. The easement may be one that already exists across the land of the borrower or of a third party, or the borrower may need to enter into an easement agreement with an adjacent land owner in order to obtain access to his or her property.
Either the ALTA Endorsement 17 or 17.1 provide a lender with assurance that there is a legal means of access to the property. If access is obtained by way of an easement, it would be advisable to review the terms of the easement agreement to determine if it raises any additional issues, such as maintenance or insurance obligations or liability for costs related to the easement area. Additionally, in the event that any portion of the property on which the easement is located is proposed to be sold, the easement agreement should be reviewed again to confirm that the sale will not disrupt the easement rights.
For more information on endorsements and other title insurance related matters, contact Amy at [email protected], or 215-542-7070.
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| Did you know... | ...that Starfield & Smith, P.C. helps lenders nationwide preserve and protect the SBA guaranty? From eligibility issues, to documentation and closing, to servicing and liquidation, we assist lenders that place a premium on protecting the guaranty.
For more information about this and other services Starfield & Smith, P.C. provides its clients, please call Ethan at 215-542-7070 or by email at [email protected].
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| Seminars and Events |
Closing & Funding the SBA Loan
Presented by: NAGGL
Instructors: Ethan W. Smith
Date: April 11th, 2011
Location: Peabody, MA
For more information, click here.
Recent Developments in SBA Lending
Advanced SBA Loan Documentation and Closing
Presented by: NAGGL
Instructors: David W. Starfield
Date: May 2nd, 2011
Location: Atlanta, GA - NAGGL SBA Lending Technical Conference
For more information, click here.
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Starfield & Smith, P.C.
Pennsylvania Office
1300 Virginia Drive Suite 325 | Ft. Washington, PA 19034
phone: (215) 542-7070 | fax: (215) 542-0723
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