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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">We have a client set to buy a brand new 3 story house and, lo and behold, the builder didn’t notice or ignored a CCR restriction limiting homes to no more than 2 stories.
Title company says the ALTA Homeowner’s policy covers this and points to a “covered risk” provision that reads:<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif"><o:p> </o:p></span></p>
<p class="MsoNormal" style="margin-left:.25in"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">You are forced to correct or remove an existing violation of any covenant, condition or restriction affecting the Land, even if the covenant, condition
or restriction is excepted in Schedule B. However, You are not covered for any violation that relates to:<o:p></o:p></span></p>
<ol style="margin-top:0in" start="1" type="a">
<li class="MsoListParagraph" style="margin-left:.25in;mso-list:l0 level1 lfo1"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">Any obligation to perform maintenance or repair on the Land; or<o:p></o:p></span></li><li class="MsoListParagraph" style="margin-left:.25in;mso-list:l0 level1 lfo1"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">Environmental protection of any kind, including hazardous or toxic conditions or substances.<o:p></o:p></span></li></ol>
<p class="MsoNormal" style="margin-left:.25in"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">unless there is a notice recorded in the Public records, describing any part of the Land, claiming a violation exists. Our liability for this
Covered Risk is limited to the extent of the violation stated in that notice.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">We’re not aware of any publicly recorded notice of that the 3<sup>rd</sup> story is a violation. Does this seem like adequate protection for the buyer or a recipe for disaster?<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">Marc Holmes<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">Holmes Law Group PLLC<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">2303 W. Commodore Way, # 306<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">Seattle WA 98199<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif"><a href="http://holmeslawgroup.com/"><span style="color:blue">HolmesLawGroup.com</span></a><span style="color:#1F497D"><o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif"><a href="mailto:marc@holmeslawgroup.com"><span style="color:blue">marc@holmeslawgroup.com</span></a><span style="color:#1F497D"><o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">Ofc: 206-357-4224<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman",serif">Cell: 206-849-0853<o:p></o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>
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