ALTA 5-06: Planned Unit Development (Assessment Priority)
&
ALTA 5.1-06: Planned Unit Development (Current Assessments)
This endorsement provides coverage against loss or damage resulting from certain risks related to planned unit developments. They are identical in all respects with the exception of Section 2 of each endorsement.
Section 2
- ALTA 5-06 provides coverage with respect to lack of priority of the lien of the insured mortgage over any lien for HOA charges and Assessments.
- By Contrast, the ALTA 5.1-06 does not, but rather provides coverage with respect to HOA charges or assessments due and unpaid at the date of the policy.
These endorsements can be issued on improved or unimproved residential property. The ALTA 5-06 can only be applied to a loan policy, whereas the ALTA 5.1-06 can be issued on both an owner's and loan policy.