Bulletin: NJ000012

Date:
July 19, 1995
To:
All New Jersey Issuing Offices
RE:
ALTA 3 and 3.1 Zoning Endorsements

Dear Associates:

Please be advised that effective July 17, 1995 the Department has approved an amendment to the New Jersey Land Title Insurance Rating Bureau filing permitting the issuance of ALTA 3 and 3.1 Zoning Endorsements. Please refer to reference section located at the end of this bulletin to review the forms. Actual endorsements on Stewart paper should be ordered from the Forms Department only when you have a request for this special coverage.

Please be advised that you are not authorized to issue these endorsements without the written consent of a senior underwriter of the Company. Generally speaking, these endorsements are rarely requested and only requested on large commercial transactions. Minimally, the Company requires an opinion of counsel from a law firm acceptable to the Company opining on the compliance of the property with the applicable local zoning laws. Those opinions are reviewed by a senior underwriter before the endorsement may be given. Also, please note that these endorsements are relatively expensive and quite often the cost of these endorsements dissuade the insureds from requesting the coverage. Accordingly, when you do receive a request for a zoning endorsement, please quote the exact premium to the proposed insured before proceeding further to make sure they are willing to pay the appropriate charges. Please also note that the premium is based on the "basic rate". This is true regardless whether or not the policy itself is issued at a different rate (i.e., reissue or refinance).

As always, the Company stands ready to help you with these underwriting requests. If you have any questions on this filing, please call our office.

THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

References

Bulletins Replaced:
None
Related Bulletins:
None
Underwriting Manual:
23.04 Zoning Coverage
Exceptions Manual:
None
Forms:
ALTA Endorsement 3 (Zoning)
 
ALTA Zoning-Completed Structure Endorsement 3.1