Guideline: ALTA Endorsement 3 (Zoning)

Explanation:

This endorsement provides insurance of the applicable zoning classification and authorized use of the land.  It is designed for issuance on unimproved property.

ALTA 3-06 is designed to be issued with a 2006 ALTA Loan or Owner's Policy.  ALTA 3 (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 or building permit from the applicable zoning department or agency, or certification from the surveyor, as to the zoning classification and authorized use.

2. Secure and review a copy of the applicable zoning ordinance.

3. If possible, confirm the zoning classification by review of the zoning maps or by requiring that the survey state the applicable zoning classification.

4. 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.

5. We prefer that this endorsement refers to the "following use or uses" by excerpting language from the zoning ordinance and not by stating in more general terms the proposed use.  We prefer if the description does not state specific numbers of units, floors, or square footage.

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.