Guidelines: ALTA Endorsement 3.4 (Zoning - No Zoning Classification)

Explanation:

This endorsement is designed for issuance on Land improved with an existing building or structure where there is no zoning classification.  This endorsement insures against loss or damage if a specified use is not allowed because it violates a municipal or county zoning ordinance or zoning regulation.  In addition, this endorsement insures against a final court order either prohibiting the present use or requiring removal or alteration of the existing building or structure because the use violates a zoning ordinance or zoning regulation as to: (i) area, width or depth of the Land as a building site for the structure, (ii) floor space area of the structure, (iii) setback of the structure, (iv) height of the structure, or (v) number of parking spaces.

ALTA 3.4-06 is designed to be issued with a 2006 ALTA Loan or Owner's Policy.  ALTA 3.4 (07-01-2021) contains modifications to align the endorsement to the terms of the 2021 ALTA Loan and Owner’s Policies and is designed to be issued with the 2021 policies.  Where available, use the version of the endorsement designed for the applicable policy, unless approved by a Stewart Title Guaranty Company underwriter.  It is not necessary to indicate “-06” or the parenthetical (date) on the endorsement attached to the policy.

Underwriting Requirements:

1. Secure and review a written certification from the applicable governmental department or agency (municipality or county), or certification from the surveyor, confirming the absence of zoning classification and authorized use, if any.

2. If possible, confirm the absence of zoning classification by review of the zoning maps and/or by requiring that the surveyor or architect state the absence of zoning classification.

3. In Section 2(a) of the endorsement, insert/describe the existing use.  We prefer if the description does not state specific numbers of units, floors or square footage.

4. If you are unable to confirm compliance with any of Items (i) – (v) in Section 2(b) (e.g., parking, etc.), you should delete such item(s) before issuing this endorsement.

5. If you are asked to add "number of loading docks" or "number of loading berths", you should confirm loading docks in the same manner as you confirm parking spaces.

6. If the authorized use is based upon an exception, variance, or prior authorized nonconforming use, consider the potential applicability of ALTA Endorsement 3.3 (Zoning - Completed Improvement - Non-Conforming Use) and consult with our underwriting personnel.

7. This endorsement requires approval of a Stewart Title Guaranty Company Underwriter.

The underwriting guidelines contained herein have been provided for general reference. The facts, circumstances, and location of the subject property should be considered when determining the issuance of the requested form or endorsement. Please note that all of the forms and endorsements included in this system may not be available in all states. Accordingly, please contact the appropriate Stewart Title Guaranty Company underwriting personnel in order to determine availability.

Compliance with the underwriting guidelines contained herein in no way obligates Stewart Title Guaranty Company to issue any form or endorsement.