Guidelines: ALTA Endorsement 3.4-06 (Zoning - No Zoning Classification) (12-01-18)


This endorsement to the Loan Policy or Owner's Policy 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.

Underwriting Requirements:

(1) Obtain and review a written certification from the applicable governmental department or agency (municipality or county) 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 survey and/or architect state the absence of zoning classification.

(3) In Paragraph 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 obtain confirmation of compliance with any of Items (i) – (v) in Paragraph 2(b) (e.g., parking, etc.), you should delete such item(s) before issuing this endorsement.

(5) If the authorized use is based upon an exception, variance, or prior authorized nonconforming use, consult with our underwriting personnel.

(6) 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.

This guideline applies to the following form(s):

ALTA Endorsement 3.4-06 (Zoning - No Zoning Classification) (12-01-18)