Guideline: STG Endorsement (Zoning - Non-Conforming Structure)

Explanation:

This endorsement to the Loan or Owner's Policy is designed for issuance on improved property. This Endorsement insures against a final court order prohibiting the present structure, and requiring removal or alteration of the present structure, because of violation of the 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.

This endorsement is used in situations where the structure on the Land doesn’t comply with the current zoning ordinance but is permitted to remain based upon an exception, variance, or authorization.  Such structure is sometimes referred to as “legally non-conforming” or “grandfathered”.

This Endorsement may be issued with a 2006 Loan or Owner's Policy.

Underwriting Requirements:

(1) Obtain and review a copy of the applicable zoning ordinance.

(2) Obtain and review a written certification from the applicable zoning department or agency as to: (a) compliance of the existing structure with the zoning ordinance, and/or (b) where the existing structure fails to comply with the zoning ordinance, obtain written confirmation of compliance of the existing structure with the applicable exception, variance or authorized nonconforming structure.  We prefer that the letter from the zoning department or agency state that the existing structure 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.

(3) If possible, require that the survey or architect state that the existing structure complies with the applicable exception, variance, etc. as regards: (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) In Paragraph 1, insert a reference to the applicable exception, variance, etc., that permits the nonconforming structure to remain.

(5) If you are unable to obtain confirmation of compliance with any of Items a - e in Paragraph 2 (e.g., parking, etc.), you should delete such item(s) before issuing this endorsement.

(6) If the applicable variance, exception, etc. requires the prior continued use of the structure in a particular manner, obtain STG Non-Conforming Structure Affidavit, unless otherwise approved by a Stewart Title Guaranty Underwriter.

(7) This endorsement may be issued alone or with ALTA Endorsement 3-06 (Zoning Unimproved Land) 06-17-06 (regarding the zoning classification of the Land under the zoning ordinance and the permitted use under that classification) upon compliance with the requirements for issuance of that endorsement.

(8) This endorsement requires approval of a Stewart Title Guaranty 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.