In a recent article, we offered a primer on the ALTA land under development endorsements. Here, we are going to discuss one of those endorsements – the ALTA 3.2.
The first land under development endorsement is the ALTA 3.2 endorsement, which is zoning for land under development. That endorsement is much like the standard ALTA endorsement. However, it provides assurance both that the land is classified as the specifically identified zone and it will specifically assure that the identified use or uses are allowed under that particular zoning classification.
The zoning endorsement for improved land assures that all of the following are adequate:
- The area width or depth of the land
- Floor space area of the improvement
- Setback of the improvement from the property lines of the land
- The height of the improvement is adequate
- The number of parking spaces in the improvement
This endorsement will tie those five categories of assurances back to the development plans. So long as the property is constructed according to the plans, then in the event of loss or damage occasioned by a violation of one of the five per ticket insurances the endorsement will provide indemnification for that loss.
However, if the improvements are not constructed according to the plans and that deviation from the plans causes a violation that would otherwise be covered by the endorsement, the deviation from the plans may relieve the underwriter from liability.