Commonwealth Land Title Insurance Company, NCS

ALTA ENDORSEMENTS - 262 - SAMPLES AND DESCRIPTIONS POLICY AUTHENTICATION – FORM 39-06 The time for pre-printed endorsements is passing. Most issuing offices produce policy schedules and endorsements on their local printer. Commercial offices often produce and distribute policies and endorsements in electronic form. So endorsements are frequently issued without “wet signatures” to authenticate them. Section 14 (c) of the Conditions requires that “Any amendment of or endorsement to this policy must be in writing and authenticated by an authorized person, or expressly incorporated by Schedule A of this policy.” Some title insurance customers have expressed concern that these emerging practices do not comply with Section 14(c). Title insurers have responded with endorsements, often unsigned, that ratify endorsements issued without wet signatures. An authentication endorsement poses problems for title insurers because many commercial customers ask for pro-forma policies before the closing, and adding an authentication endorsement to the pro-forma might be construed as activating the pro-forma policy before the commitment requirements have been met, which is not the intent of the parties. It should not be added to Pro Forma policies. Note: The 2021 ALTA Owner's and Loan Policies explicitly include coverage for policies issued electronically or lacking signature, so the ALTA 39 endorsement is moot for the 2021 policies, even though ALTA has not de-certified it at this time. The following language appears on Schedule A of both the Owner's and Loan Policies: ‘This policy, when issued by the Company with a Policy Number and the Date of Policy, is valid even if this policy or any endorsement to this policy is issued electronically or lacks any signature.’ ALTA Endorsement — Form 39-06 (Policy Authentication – 4/2/13) Form 39-06 Policy Authentication