This endorsement to the mortgagee's or owner's policy is designed for issuance on improved property. It is preferred that this endorsement refer in the second paragraph to the "following use or uses" by specifically excerpting language from the zoning ordinance, not by stating the proposed or actual use. Approval of the National Legal Department and a legal opinion from a Martindale-Hubbell A-V or B-V rated attorney is required before this endorsement may be issued.
The underwriting guidelines are as follows:
- We require a review of the certificate of occupancy if the improvements were recently
- We require certification from the applicable zoning department or agency as to the
zoning classification and authorized uses and as to compliance of existing improvements
with applicable zoning ordinances. If the improvements were recently constructed, we
then also require the title insurance agent to review the zoning maps.
- You should verify that the actual use is not based upon a variance, non-conforming use,
or exception. If such allowed use exists, consult with our underwriting personnel. We
may then require an attorney's opinion (paid by the borrower) by counsel competent in
- We prefer that this endorsement refer, in the second paragraph, to the "following use or
uses" by excepting language from the zoning ordinance and not by stating the use.
- If possible, request that the survey, if any, certify the zoning classification and
compliance with applicable zoning ordinances.
- In order to leave the Number of Parking Spaces coverage in the form, you must consult
with our underwriting personnel. They will want to know or see (i) a certification from
the zoning authority as to compliance with parking requirements, (ii) that the survey state
the number of parking spaces and certify compliance, and (iii) that you reviewed the
zoning ordinance to confirm compliance. The architect can be very helpful in acquiring
Charge: The requested rate for this endorsement is Fifteen Percent (15%) of original rate. If
Zoning Form 3.1 coverage is provided simultaneously with Owner's and Loan policies covering
the same land, the rate for the Owner's coverage shall be the original endorsement rate for the
policy issued and there shall be no charge for the Loan coverage, other than the applicable
simultaneous issue charge for the policy.
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.