Zoning: Overview

 ALTA owner’s and loan policies specifically exclude zoning matters from coverage. While some states do permit such coverage to be made via endorsement, other states expressly forbid it. Since the ALTA policies themselves – through the Exclusions from Coverage – specifically exclude such matters, it is not necessary to make further exception regarding zoning laws and ordinances. However, any zoning violations noted of record should be specifically excepted in such policies.


Zoning matters contained within the body of restrictions or other agreements, designed to limit or regulate the use of specific property, should be treated as restrictive covenants and not as express zoning matters. If restrictions contain, or a notation is made on the recorded plat as to, a requirement that the subject lands comply with local zoning laws, specific exception must be made re same. Affirmative insurance for the status of zoning may be requested by lenders in certain commercial transactions.   


For guidelines on its issuance, see:


Zoning Endorsement (ALTA 3)