Legal Advice During Challenging Times

What’s a zoning report and why do you need one?

On Behalf of | Feb 2, 2023 | Real Estate Law |

If you are considering investing in commercial real estate, you have a ton of factors to take into account. From the size of the property to price and payment terms, there is no shortage of details on your to-do list. And one of the most important things you need to consider when investing in commercial real estate is land zoning

Reading and understanding the area’s zoning codes might seem daunting. Overlooking this crucial requirement can lead to serious problems. 

Understanding commercial zoning

The concept of zoning is pretty straightforward – local authorities pass legislations that segment the land under their jurisdiction into districts. Every district is governed by specific ordinances that regulate what you can build on your piece of property, what such buildings can be used for as well as how the buildings in a specific district relate to each other. 

As far as investing in commercial real estate go, it is in your best interest that you research the zoning regulations of the commercial space you are interested in acquiring to ensure that you can operate the intended business on the property without violating the stipulated ordinances. This involves the following:

  • Searching the title for defects
  • Understanding and interpreting local zoning ordinances
  • Determining whether the commercial property has a previous variance
  • Finding out if there are any conditional clauses on the property
  • Investigating parking regulations and sign limitations

What if you overlook zoning regulations?

Most commercial real estate transactions go through without a glitch. Others, however, can run into costly complications when you overlook the subject of due diligence. In some instances, it can lead to the revocation of the sale, leaving you fighting to recover your money from the seller. And your business can also suffer significant losses. This explains the importance of understanding your legal rights and obligations while investing in commercial real estate.