Page 11 - ALTA Endorsements Guide

A L T A E N D O R S E M E N T

1-06 to 9.6.1-06 9.7-06 to 17.1-06 17.2-06 to 28.3-06 29-06 to 36.6-06 36.7-06 to 46-06

ALTA ENDORSEMENT 3.2-06
ZONING – LAND UNDER DEVELOPMENT
Revised (04-02-12)

1. For purposes of this endorsement:

a. “Improvement” means a building, structure, road, walkway, driveway, curb, subsurface utility or
water well existing at 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” means those site and elevation plans made by [name of architect or engineer] dated
____, last revised ________, designated as [name of project] consisting of ___sheets.

2. The Company insures against loss or damage sustained by the Insured in the event that, at Date of
Policy

a. according to applicable zoning ordinances and amendments, the Land is not classified Zone
_____________________;
b. the following use or uses are not allowed under that classification:
c. There shall be no liability under paragraph 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
ordinances and amendments, including but not limited to the failure to secure necessary consents
or authorizations as a prerequisite to the use or uses. This paragraph 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 court of competent jurisdiction either prohibiting the use of the Land, with any
Improvement, as specified in paragraph 2.b. or requiring the removal or alteration of the
Improvement, because of a violation of the zoning ordinances and amendments in effect at Date of
Policy with respect to any of the following matters:

a. Area, width, or depth of the Land as a building site for the Improvement
b. Floor space area of the Improvement
c. Setback of the Improvement from the property lines of the Land
d. Height of the Improvement, or
e. Number of parking spaces.

4. There shall be no liability under this endorsement based on:

a. the invalidity of the zoning ordinances and amendments until after a final decree of a court of
competent jurisdiction adjudicating the invalidity, the effect of which is to prohibit the use or uses;
b. the refusal of any person to purchase, lease or lend money on the Title covered by this policy.

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