ALTA Endorsement 3.2 (Zoning - Land Under Development) (7-1-21)
This Endorsement is Issued as Part of Policy Number ______________________
Stewart Title Guaranty Company
File No.: ______________________
1. For purposes of this endorsement:
a. “Improvement”: A building, structure, road, walkway, driveway, curb, subsurface utility, or water well existing at the Date of Policy or to be built or constructed according to the Plans that is or will be located on the Land, but excluding crops, landscaping, lawns, shrubbery, or trees.
b. “Plans”: Those site and elevation plans made by _______________dated ____, last revised ________, designated as ________________ consisting of ___sheets.
c. “Zoning Ordinance”: A zoning ordinance or zoning regulation of a political subdivision of the State that is in effect and applicable to the Land at the Date of Policy.
2. The Company insures against loss or damage sustained by the Insured in the event that, at the Date of Policy:
a. According to the Zoning Ordinance, the Land is not classified Zone _____________________;
b. The following use or uses are not allowed under that classification: _____________________;
c. There is no liability under Section 2.b. if the use or uses are not allowed as the result of any lack of compliance with any condition, restriction, or requirement contained in the Zoning Ordinance, including but not limited to the failure to secure necessary consents or authorizations as a prerequisite to the use or uses. Section 2.c. does not modify or limit the coverage provided in Covered Risk 5.
3. The Company further insures against loss or damage sustained by the Insured by reason of a final decree of a State or federal court having jurisdiction either prohibiting the use of the Land, with any Improvement, as specified in Section 2.b. or requiring the removal or alteration of the Improvement because, at the Date of Policy, the Zoning Ordinance has been violated with respect to any of the following matters:
a. The area, width, or depth of the Land as a building site for the Improvement;
b. The floor space area of the Improvement;
c. A setback of the Improvement from the property lines of the Land;
d. The height of the Improvement; or
e. The number of parking spaces.
4. There is no liability under this endorsement based on:
a. The invalidity of the Zoning Ordinance until after a final decree of a State or federal court having jurisdiction adjudicating the invalidity, the effect of which is to prohibit the use or uses described in Section 2.b.
b. The refusal of any person to purchase, lease, or lend money on the Title covered by this policy.
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For issuing guidelines on this form, see Guidelines.