STG Zoning - Contemplated Construction Endorsement; Modified ALTA 3.1 Guideline 1

Explanation:

This Endorsement to the Loan or Owner's Policy is designed for issuance on unimproved property for which construction is immediately contemplated. You must secure underwriter approval to issue this endorsement. This endorsement refers to specific plans which must be consistent with the zoning.

Underwriting Requirements:

(1) We generally require an attorney's opinion (paid by the borrower) by counsel competent in zoning matters (who should consider those matters referred to in our Underwriting Requirements for the ALTA Form 3). The opinion should refer to the specific plans to be incorporated in the Endorsement.
(2) We require a certification from the applicable zoning department or agency as to the zoning classification and authorized used. The letter should state that the proposed plans comply with applicable zoning ordinances. The title insurance agent should review the zoning map.
(3) You should verify that the proposed use is not based upon a variance, non-conforming use, or exception. If such allowed use exists, consult with our underwriting personnel.
(4) Request a copy of any issued building permit.
(5) If possible, request that the survey, if any, certify the zoning classification and compliance of the proposed improvements with applicable zoning ordinances.
(6) If you are requested to insure compliance of the plans with parking requirements, consult with our underwriting personnel. The attorney's opinion or zoning letter must certify compliance of the plans with such requirements, and we must review the ordinance to verify compliance.
(7) We prefer that this Endorsement refer, in the second paragraph, to the "following use or uses" by excepting language from the zoning ordinance and not by stating the proposed or actual use.