ALTA has developed the 8.1 (Environmental Protection) Endorsement, which provides affirmative insurance that there are no liens recorded for the cleanup of hazardous wastes on the insured property. The endorsement defines (and limits) the public records which must be reviewed by the title examiner in order to determine the existence of these liens and excludes from coverage the so-called “super-liens” which in some states provide priority over existing mortgages recorded even before the recording of the lien. Specific bulletins regarding these endorsements for each state are issued from time to time. If an environmental lien is found to affect the insured land; this endorsement may not be included in the loan policy and the exception noted below must be included on Schedule B. This coverage is extended to lenders on property used for residential purposes only. It may not be issued on commercial or industrial property without prior authorization from Agents National Title.
A sample ALTA Endorsement 8.1 form.