LA ALTA Endorsement 3.1 (Zoning-Completed Structure)

Explanation:

This endorsement to the mortgagee's or owner's policy is designed for issuance on improved property. It is preferred that this endorsement refer in the second paragraph to the "following use or uses" by specifically excerpting language from the zoning ordinance, not by stating the proposed or actual use. Approval of the National Legal Department and a legal opinion from a Martindale-Hubbell A-V or B-V rated attorney is required before this endorsement may be issued.

Underwriting Requirements:

The underwriting guidelines are as follows:

1. We require a review of the certificate of occupancy if the improvements were recently
   constructed.
   
   
2. We require certification from the applicable zoning department or agency as to the
   zoning classification and authorized uses and as to compliance of existing improvements
   with applicable zoning ordinances. If the improvements were recently constructed, we
   then also require the title insurance agent to review the zoning maps.
   
   
3. You should verify that the actual use is not based upon a variance, non-conforming use,
   or exception. If such allowed use exists, consult with our underwriting personnel. We
   may then require an attorney's opinion (paid by the borrower) by counsel competent in
   zoning matters.
   
   
4. We prefer that this endorsement refer, in the second paragraph, to the "following use or
   uses" by excepting language from the zoning ordinance and not by stating the use.
   
   
5. If possible, request that the survey, if any, certify the zoning classification and
   compliance with applicable zoning ordinances.
   
   
6. In order to leave the Number of Parking Spaces coverage in the form, you must consult
   with our underwriting personnel. They will want to know or see (i) a certification from
   the zoning authority as to compliance with parking requirements, (ii) that the survey state
   the number of parking spaces and certify compliance, and (iii) that you reviewed the
   zoning ordinance to confirm compliance. The architect can be very helpful in acquiring
   this information.

Charge: The requested rate for this endorsement is Fifteen Percent (15%) of original rate. If
Zoning Form 3.1 coverage is provided simultaneously with Owner's and Loan policies covering
the same land, the rate for the Owner's coverage shall be the original endorsement rate for the
policy issued and there shall be no charge for the Loan coverage, other than the applicable
simultaneous issue charge for the policy.