Endorsements: Form 2039-06 Instructions

NOTES:

Coverage: Matters of zoning are excluded from coverage under paragraph 1 of the Exclusions from Coverage. The Zoning - Unimproved Land Endorsement (ALTA Form 3-06) modifies the exclusions by insuring that the premises are classified in the particular zone that is specified in the endorsement. Additionally, the endorsement delineates the use or uses that are permitted under the property's zoning classification. 

There is no liability under this endorsement based upon: 1) the failure to comply with the requirements of the zoning ordinances; 2) the entry of a final decree of a court invalidating the zoning ordinances, but only if the decree does not also prohibit such use or uses, (i.e., although the zoning ordinance may be held invalid, if the use is allowed to continue, there is no liability under the endorsement); and 3) the refusal any person to purchase, lease, or lend money on the premises in question due to a failure of the specific assurances in the zoning endorsement.

Procedure: This endorsement may be issued on both the Owner’s and Loan Policies. In order to issue this endorsement, examine the zoning maps and ordinances for the municipality in which the property is located (or the county if the property is in an unincorporated area). Determine the zoning designation for the subject property and list that designation in paragraph 1.a. of the endorsement. Then determine, pursuant to the zoning ordinances for that zone, which uses are permitted and list them in paragraph 1.b. of the endorsement.

Consult the Commercial Endorsement Rates for the risk premium to remit to ATG on this endorsement.

Zoning coverage involves the assumption of a unique risk. Do not rely upon the zoning coverage provided under a prior policy by another title insurer.

Questions? Contact an Underwriter.