Guideline: ALTA Endorsement 3.2-06 (Zoning - Land Under Development) (04/02/12)
This endorsement to the Loan or Owner's Policy is designed for issuance on improved property or land on which plans have been approved but work has either not yet begun or is in process. Like the ALTA Endorsement Forms 3-06 and 3.1-06, this Endorsement insures (1) the zoning classification, and (2) authorized uses under that classification. This Endorsement also insures against a final court order prohibiting the present structure, and requiring removal or alteration of the present Improvement and proposed Improvement to be built according to Plans defined in the endorsement, because of violation of the existing zoning ordinance as to (1) area, width or depth of the land as a building site, (2) floor space area of the structure, (3) setback of the structure, (4) height of the structure, or (5) number of parking spaces.
Endorsement 3.2-06 is issued with a 2006 Loan or Owner's Policy.
(1) Secure and review a letter or building permit from the applicable zoning department or agency, or certification from the surveyor as to (a) the zoning classification and authorized use, (b) compliance of the existing and proposed Improvements with the zoning ordinance, and (c) compliance with the zoning ordinance as to number of parking spaces. The survey must contain an overlay of proposed Improvements, which reflects the Plans (site and elevation plans made by the architect or engineer). We prefer that the letter from the zoning department or agency state that the existing improvements comply with (a) area, width or depth of the land as a building site, (b) floor area space of the structure, (c) setback of the structure, (d) height of the structure, and (e) number of parking spaces. If you subsequently down date the policy, you must also secure a new letter or certification as to compliance and an updated survey.
(2) Secure and review a copy of the applicable zoning ordinance.
(3) If possible, require that the survey or architect state the applicable zoning classification and number of parking spaces and state that the existing and proposed Improvement complies with (a) area, width or depth of the land as a building site, (b) floor area space of the structure, (c) setback of the structure, (d) height of the structure, and (e) number of parking spaces.
(4) We prefer that Paragraph 2(b) of this Endorsement refer to the “following use or uses” by excerpting language from the zoning ordinance and not by stating in more general terms the proposed use.
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.