When to Use the Assignment of Rents or Leases Endorsement

08/07/2024 11:11 AM Mark Goodman

While some title insurance policies are boilerplate, many require specific endorsements to fit the unique needs of the property in question. In this article, we are going to discuss when to use the Assignment of Rents or Leases Endorsement in a commercial title insurance policy.

Assignment of Rents or Leases Endorsement

The Assignment of Rents or Leases Endorsement was developed to standardize a form of endorsement frequently requested on commercial transactions. This endorsement protects a lender against financial losses resulting from: (1) any defect in the execution of the Assignment; and (2) any Assignment of Leases and Rents appearing in the Public Records which is not excepted in Schedule B.

This endorsement is available in a lender's policy but not in an owner's policy.

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