Page 6 - NCS Guide to the Most Requested Commercial Title Insurance Endorsements eBook:

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A L T A E N D O R S E M E N T
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ZONING ENDORSEMENT SERIES
ALTA ENDORSEMENTS 3, 3.1, 3.2, 3.3, 3.4
I. Purpose:

The ALTA 3 series of endorsements provides assurance that the land described in the
policy is zoned in a specific classification and lists one or more of the uses allowed in
that classification.

The ALTA 3 series of endorsements may be issued with owner’s and loan policies.

II. Coverage Provided:

a. ALTA 3 (Zoning): Provides insurance against loss or
damage sustained due to the failure of the insured land to hold a particular
zoning classification and against certain specified uses not being permitted under
the zoning ordinances in effect.

b. ALTA 3.1 (Zoning – Completed Structure): Issued only for insured land with
completed structures.

c. ALTA 3.2 (Zoning – Land Under Development): Insures an ongoing or
contemplated construction project in which improvements have not yet been
completed, but for which the title insurer has been provided existing plans and
specifications that depict the contemplated improvements.

d. ALTA 3.3 (Zoning – Complete Improvement – Non-Conforming Use): Insures
against loss or damage if a specified non-conforming use is not allowed because
it violates a municipal or county zoning ordinance or zoning regulation. This
endorsement also insures against a final court order either prohibiting the
present non-conforming use or requiring removal or alteration of the existing
building because the non-conforming use violates a zoning ordinance or zoning
regulation as to: (i) area, width or depth of the insured land as a building site for
the building, (ii) floor space area of the building, (iii) setback of the building, (iv)
height of the building, or (v) number of parking spaces.

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