When purchasing property, it is important to consider what zone that property is in. As a general rule, the three main zones are residential, commercial and industrial. Properties can only be used in specific ways, based on how they are classified. If you buy a home in a residential area, for example, you likely cannot convert it into a small business location without getting a zoning variance.
But even if you purchase property within a commercial zone, it’s important to note that there could be a land use classification. In other words, the government has taken additional steps to identify specific types of businesses that can operate within certain sections of the commercial zone. Other businesses are prohibited, despite also being commercial in nature.
When would this become an issue?
This can become a very serious issue if you do not investigate these zoning restrictions and your business is not allowed to operate.
For example, a commercial area may only be zoned for retail locations. The government wants small stores, not major corporations. If you are thinking of developing a shopping center, you may be right that it needs to be in a commercial zone. But such a big operation may not be permitted on that specific property, meaning you may still need a variance – or a new location.
In other words, checking the zone is one of the first steps to take before purchasing a property. If the type of land use you’re interested in is already permitted, you’ve taken enough steps to protect your company and ensure that it won’t get shut down by the local government. But you also need to consider any land use restrictions, as they could cause problems for you – potentially making it impossible to open your business.
If you do find yourself in a dispute or in danger of having your company shut down, be sure you are well aware of your legal options.
