New 2011 ALTA Standards Require Title Insurer to Provide Zoning Documents

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One significant revision to the 2011 ALTA/ACSM requirements is to Optional Table A, Item 6 which requires the title insurer to provide an accurate zoning designation and all applicable zoning code requirements. The Planning and Zoning Resource Corporation (PZR Report) will answer all questions and has reference material available for download.

Zoning Report

Title Insurers now Required to Provide Zoning Documents

Title Insurers and companies have probably heard by now that the American Land Title Association, in conjunction with the National Society of Professional Surveyors, has modified the ALTA Survey requirements which became effective on 2/23/2011. A copy of these revised requirements are available for download on PZR site.

One significant revision is to Optional Table A, Item 6, which is almost always requested by the lender, and requires the title insurer to provide an accurate zoning designation and all applicable zoning code requirements. This represents another obligation of the title insurer in an already lengthy process.

Zoning Endorsement 3.1, used primarily for improved property, insures against loss or damage that may be sustained by reason of a final judgment requiring the removal or alteration of existing structures on the land by reason of their violations of the zoning restrictions imposed on the use of the land relating to the site, floor area, set-back lines, and height of the building.

Zoning Endorsement 3.0, used primarily for vacant land before construction commences, informs the insured of the zoning classification applicable to the land and the uses permitted by that zoning classification, and insures against loss or damage that my be sustained by reason of inaccuracy in the information supplied or by reason of a final judicial determination invalidating the zoning ordinance. It may be issued with a loan policy only.

The Planning & Zoning Resource Corporation, PZR has been providing zoning due diligence since 1994 and is America‚Äôs largest zoning due diligence provider and the creator of the PZR Report®. PZR has worked with all major title companies over the years and continues to provide zoning analysis and documentation allowing your insurer to issue their Zoning 3.1and 3.0 Endorsements.

Please let PZR know if there are any questions or if assistance is needed by providing zoning information to the title insurer or surveyor. PZR has several different levels of document packages available, and can customize any of them to meet zoning document needs. The Planning and Zoning Resource Corporation is here to provide zoning due diligence information in a timely and cost effective manner.

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