New Mexico Register / Volume XXIX, Issue 10 / May 29, 2018

This is an amendment to 13.14.18 NMAC, Sections 11 and 13, effective July 1, 2018

13.14.18.11 ADDITIONAL AFFIRMATIVE COVERAGES:

A. When issuing a commitment for an owner’s or loan policy, or issuing an owner’s or loan policy, exceptions as to easements, rights-of-way, and restrictions must detail any matters of violation, protrusion, encroachment or overlap on to easement, right-of-way, adjacent property, building set back lines or other violated restriction, which are revealed by an inspection or survey of the property.

B. In the case of commitments issued for loan policies [(construction and permanent)], and in the issuance of said loan policies, but not in the case of commitments for owner’s policies, leasehold owner’s policies and contract purchaser’s policies, or the issuance of said policies, [when there are no violations of restrictions] the following language may be added to each [such] covenant, deed, or other recorded restriction exception: “Violations of [These] this [(or these)] restriction[(s) have (has) not been violated] (or these restrictions), if any, and [a] any future violation thereof shall not cause a forfeiture or reversion of title and will not affect the validity or priority of the lien of the mortgage herein insured. This assurance does not extend to restriction(s) relating to environmental protection unless a notice of a violation thereof has been recorded or filed in the public records and is not referenced in schedule B. However, this policy insures that any violation of this restriction (or these restrictions) [these (or this) restriction(s)] relating to environmental protection shall not cause a forfeiture or reversion of title and will not affect the validity or priority of the lien of the mortgage insured herein.”

[C. Alternatively, and only in commitments for or the issuance of loan policies, when there are violations revealed, the following language may be added to each such restriction exception: “These (or this) restrictions(s) have (has) been violated in that (insert language stating what violation(s) exist(s)). This (or these) violation(s) will not cause a forfeiture or reversion of title and will not affect the validity or priority of the lien of the mortgage herein insured. This assurance does not extend to restriction(s) relating to environmental protection unless a notice of a violation thereof has been recorded or filed in the public records and is not referenced in schedule B. However, this policy insures that any violation of these (or this) restriction(s) relating to environmental protection shall not cause a forfeiture or reversion of title and will not affect the validity or priority of the lien of the mortgage insured herein.”]

[D]C. Additionally, and again only in commitments for or the issuance of loan policies, when protrusions, encroachments or overlaps into or upon easements, rights-of-way, adjacent property, the property to be insured, or building set-back lines (as described in restrictive covenants or plats filed of record) are revealed by a survey, the following paragraph may be added as a separate specific exception: “Encroachment (protrusion or overlap) of the improvements over (on, onto, in, into or upon) the (here describe the easement, right-of-way, adjacent property, the land to be insured, or building set-back line) as shown on a survey prepared by ______________ dated _____________. This policy insures the insured against loss or damage as defined in this policy by reason of the entry of any final decree entered in a court of competent jurisdiction and of last resort ordering the removal of said improvements presently situate on the land which constitute the (protrusion, overlap or encroachment).” This affirmative coverage language may be inserted into the foundation endorsement, NM form 61, in accordance with 13.14.10.44 NMAC.

[E]D. Each insurer shall establish its written underwriting requirements necessary to offer these additional affirmative coverages or determine that it does not desire to offer said coverages under any circumstances. No company may provide affirmative coverage by the intentional omission of an exception to any adverse matter disclosed by inspection, or unrecorded survey or other evidence, or by a search and examination of the public records, or by any adverse matter arising by operation of law except as specifically authorized by these rules.

[13.14.18.11 NMAC - Rp, 13.14.18.11 NMAC, 3/1/2016; A, 7/1/2018]

13.14.18.13 APPROVED FORMS: [The following forms are hereby promulgated for use in New Mexico and the text of each referenced ALTA form and their dates of adoption are hereby incorporated by reference. The forms that are not ALTA forms are hereby promulgated in the form set forth at the effective date of this rule in the NMAC. All of the forms herein adopted shall be set forth in their entirety in a repository on a secure website to be created and maintained by the office of superintendent of insurance, which shall be responsible for maintaining the repository. The forms as reproduced in that secure repository shall constitute the exclusive promulgated forms for use in New Mexico, and none of those forms may be altered except to correct non-substantive errors or by proper amendment to this rule approved by the office of superintendent of insurance. To the extent, if any, that there is any discrepancy between any form described herein and any form reproduced in the repository, the form described herein shall control and be deemed the promulgated form. For promulgated title insurance forms, visit www.osi.state.nm.us.]

[NM FORM NO.	ALTA FORM NO. & DATE	NAME OF FORM
1	6-17-06	Owner’s Policy
2	6-17-06	Loan Policy
		[Reserved]
6	6-17-06	Commitment for Title Insurance
6.1	6-17-06	Plain Language Commitment for Title Insurance
		[Reserved]
9		Notice of Availability of Owner’s Title Insurance
10	9-24-94	Facultative Reinsurance Agreement
11		Multipurpose Endorsement
12	4-06, 10-16-08	Condominium Endorsement - All Assessments
13	5-06, 10-16-08	Planned Unit Development Endorsement All Assessments
13.1	5.1-06 10-16-08	Planned Unit Development Endorsement Unpaid Assessments
14	6-06, 6-17-06	Variable Rate, Mortgage Endorsement
15	6.2-06, 6-17-06	Variable Rate Mortgage Negative Amortization Endorsement
16	7-06, 6-17-06	Manufactured Housing Unit Endorsement
16.1	7.1-06, 6-17-06	Manufactured Housing - Conversion (Loan) Endorsement
16.2	7.2-06, 6-17-06	Manufactured Housing - Conversion (Owner’s) Endorsement
17		Revolving Credit Endorsement
18	A, 6-1-87	Construction Loan Policy Endorsement A
		[Reserved]
20	13-06, 4-02-12	Leasehold Owner’s Endorsement
21	13.1-06, 4-02-12	Leasehold Loan Endorsement
22		Pending Disbursement Down Date Endorsement
23		Pending Improvements Endorsement
24	10-06, 6-17-06	Assignment Endorsement
24.1	10.1-06, 10-16-08	Assignment and Down Date Endorsement
25		Additional Advance Endorsement
26		Partial Coverage Endorsement
		[Reserved]
28	15-06, 6-17-06	Non-Imputation - Full Equity Transfer Endorsement
28.1	15.1-06, 6-17-06	Non-Imputation - Additional Interest Endorsement
28.2	15.2-06, 6-17-06	Non-Imputation - Partial Equity Transfer Endorsement
29	8.1-06, 6-17-06	Environmental Protection Lien Endorsement
30	4.1-06, 6-17-06	Condominium Endorsement Unpaid Assessments
31		Owner’s Leasehold Conversion Endorsement
		[Reserved]
33		Change of Name Endorsement
34	12-3-12	U.S. Policy
35		Notice to Purchaser Insured
41	12-3-12	Limited Pre-Foreclosure Title Insurance Policy
42	12-3-12	Limited Pre-Foreclosure Title Insurance Policy Down Date Endorsement
43		Insuring Around Endorsement
44		Revolving Credit - Increased Credit Limit Endorsement
45	8-1-12	Residential Limited Coverage Junior Loan Policy
46	8-1-12	Down Date Endorsement to Residential Limited Coverage Junior Loan Policy JR1
47	8-1-12	Endorsement to Residential Limited Coverage Junior Loan Policy JR 2 (Future Advance)
48	2-06, 6-17-06	Truth-in-Lending Endorsement
49		Notice of Availability of Future Increase in Coverage and Potential Premium Discounts for Future Policies
50	9-06, 6-17-06	Restrictions, Encroachments, Minerals - Loan Policy Endorsement
50.1	9.3-06, 6-17-06	Restrictions, Encroachments, Minerals - Loan Policy Endorsement
51		Land Abuts Street Endorsement
52	22-06	Location Endorsement
		[Reserved]
54	19.1-06, 6-17-06	Contiguity Single Parcel Endorsement
55		Named Insured Endorsement
56	9.1-06, 6-17-06	Restrictions, Encroachments, Minerals - Owner’s Policy (Unimproved Land) Endorsement
56.1	9.4-06, 6-17-06	Restrictions, Encroachments, Minerals Endorsement (Owner’s Policy - Unimproved Land)
57	9.2-06, 6-17-06	Restrictions, Encroachments, Minerals - Owner’s Policy (Improved Land) Endorsement
57.1	9.5-06, 6-17-06	Restrictions, Encroachments, Minerals (Owner’s Policy - Improved Land) Endorsement
58	20-06, 6-17-06	First Loss - Multiple Parcel Transactions Endorsement
		[Reserved]
60	12-06, 6-17-06	Aggregation Endorsement
60.1	12.1-06	Aggregation Endorsement
61		Foundation Endorsement
62	37-06, 11-3-12]	Assignment of Rents or Leases Endorsement
63	12-3-12	Short Form Residential Loan Policy
64	3-06, 6-17-06	Zoning - Unimproved Land Endorsement
64.1		Zoning- Unimproved Land - No Applicable Zoning Ordinances Endorsement
65	3.1-06, 10-22-09	Zoning - Completed Structure Endorsement
65.1	3.2-06, 4-2-12	Zoning - Land Under Development Endorsement
65.2		Zoning - Completed Structure - No Applicable Zoning Ordinances Endorsement
66	19-06, 6-17-06	Contiguity - Multiple Parcels Endorsement
67	17-06, 6-17-06	Access and Entry Endorsement
68	17.1-06, 6-17-06	Indirect Access and Entry Endorsement
69	17.2-06, 6-17-06	Utility Access Endorsement
70	8.2-06, 6-17-06	Commercial Environmental Protection Lien Endorsement
71	14.3-06, 10-22-09	Reverse Mortgage Endorsement
72	18-06, 6-17-06	Single Tax Parcel Endorsement
73	18.1-06, 6-17-06	Multiple Tax Parcel Endorsement
74	24-06, 10-16-08	Doing Business Endorsement
75	26-06, 6-17-06	Subdivision Endorsement
76	28-06, 10-16-08	Easement - Damage or Enforced Removal Endorsement
77	23-06, 6-17-06	Co-Insurance - Single Policy Endorsement
78	25-06, 6-17-06	Same as Survey Endorsement
79	25.1-06, 6-17-06	Same as Portion of Survey Endorsement
80	11-06, 6-17-06	Mortgage Modification Endorsement
80.1	11.1-06, 10-22-09	Mortgage Modification With Subordination Endorsement
80.2]	11.2-06, 12-2-13	Mortgage Modification With Additional Amount of Title Insurance Endorsement
81	4-2-14	Closing Protection Letter - Single Transaction
81.1	4-2-14	Closing Protection Letter - Multiple Transactions
		[Reserved]
82		Inter-Underwriter Indemnification Agreement
83	32.0-06, 2-3-11	Construction Loan – Endorsement
83.1	32.1-06, 4-2-13	Construction Loan - Direct Payment Endorsement
83.2	32.2-06, 4-2-13	Construction Loan - Insured’s Direct Payment Endorsement
84	33-06, 2-3-11	Disbursement Endorsement
85		Identified Risk Coverage Endorsement
86	39-06, 4-2-13	Policy Authentication Endorsement
88	36-06, 4-2-12	Energy Project Leasehold/Easement - Owner’s Endorsement
88.1	36.1-06, 4-2-12	Energy Project Leasehold/Easement - Loan Endorsement
88.2	36.2-06, 4-2-12	Energy Project - Leasehold - Owner’s Endorsement
88.3	36.3-06, 4-2-12	Energy Project - Leasehold - Loan Endorsement
88.4	36.4-06, 4-2-12	Energy Project Covenants, Conditions & Restrictions - Land Under Development - Owner’s Endorsement
88.5	36.5-06, 4-2-12	Energy Project Covenants, Conditions & Restrictions - Land Under Development - Loan Endorsement
88.6	36.6-06, 4-2-12	Energy Project - Encroachments Endorsement
88.7	36.7-06, 4-2-12	Energy Project - Fee Estate - Owner’s Policy Endorsement
88.8	36.8-064-2-12	Energy Project - Fee Estate - Loan Policy Endorsement
89	16-06, 6-17-06	Mezzanine Financing Endorsement
90	12-1-14	Residential Limited Coverage Mortgage Modification Policy
91		Contract Purchaser Conversion Endorsement

*omitting Paragraph 14*]

The forms published in the website of the office of the Superintendent of Insurance are hereby promulgated for use in New Mexico, and text of each form and its date of adoption are incorporated herein by reference. The repository of promulgated forms is found at https://www.osi.state.nm.us/Title/officialtitleinsforms.aspx. The forms as reproduced in that secure repository shall constitute the exclusive promulgated forms for use in New Mexico and none of those forms may be altered except to correct non-substantive errors or by proper amendments as provided in Section 14-4-1, et seq.NMSA 1978, or as otherwise required by law.

[13.14.18.13 NMAC - Rp, 13.14.18.13 NMAC, 3/1/2016; A, 7/1/2018]