Guideline: ALTA Endorsement 3 (10/17/98) and 3-06 (Zoning)

Explanation:

This endorsement to the Loan or Owner's Policy provides insurance of the applicable zoning classification and authorized use of the land. It is designed for issuance on unimproved property.

Endorsement 3 is issued with a 1992 ALTA Loan or Owner's Policy.  Endorsement 3-06 is issued with a 2006 ALTA Loan or Owner's Policy.
 

Underwriting Requirements:

(1) Secure and review a written certification from the applicable zoning department or agency as to the zoning classification and authorized use together with a copy of the applicable zoning ordinance.

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

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

(4) We prefer that Paragraph 2 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.