Glossary of Endorsements

ALTA ENDORSEMENT FORM 5 (AKA FORM 115.2) PLANNED UNIT DEVELOPMENTS

Provides owner or lender with affirmative insurance concerning CC&R’s, homeowners’ association assessments, encroachments and the exercise of rights of first refusal, with respect to a unit/parcel in a planned unit development.


The ALTA Endorsement Form 5 was recommended for use in 1979 as a standard form of additional coverage for attachment to owners’ and lenders’ policies covering title to, or lien upon, a unit/parcel in a planned unit development (PUD). Its initial purpose was to afford assurances considered essential by lenders in the secondary market, notably FNMA, which formerly were available, at least in some states, only by way of attorney’s opinion and representation. Because the requisite investigations would be identical for an owner or lender, it was believed that, where appropriate, the same coverage could also be provided for an owner’s policy covering title to a unit/parcel in a planned unit development.