Based on the type of property and transaction, title companies offer a variety of endorsements to lenders and owners. They serve as additional coverage, insuring issues such as matters of survey, zoning, access, environmental issues, and any future modifications to the original policy.
The cost of an endorsement varies based upon on the risk factors and the value of the property. In commercial financing, the lender may seek certain endorsements to the title policy covering a risk of concern, such as loss of priority, leasehold improvements, insolvency, and construction and mechanic’s lien coverages.