A Zoning Report is a necessary component for securing financing when looking to acquire a property. As well as being an informative assessment for a potential buyer, Zoning Reports are often times required by lenders. A Zoning Report can be completed within three weeks by a legal professional (doctor of jurisprudence) at very competitive rates.
What is Zoning?
Zoning is a system of codes used for developing a municipality, generally a city or county, in which various geographic areas are branded a Zone contain different allowances and restrictions. Zoning is the key to future development within the municipality and adapts to current and future predicted trends within different zones. Zoning is used as a resource to protect existing neighborhoods, develop new neighborhoods, and redevelop or revitalize older neighborhoods.
What is a Zoning Report?
A zoning report is a concise analysis detailing a subject property’s respective jurisdiction, zoning ordinance, zoning designation, permitted uses, density, lot area, lot line setback and parking regulations. A zoning report outlines whether or not a property conforms to, or is in compliance with, its municipality’s zoning code.
Why is Zoning Important to You?
Zoning due diligence has become a necessary requisite process in every real estate investment transaction. Lenders, bankers, financiers, insurers, and buyers need to minimize their risk and ensure their investment is smart, safe and profitable.
Banks and lenders generally require a property to be in compliance with zoning ordinances before they will issue a loan. In the event that a property becomes legal nonconforming, commonly referred to as “grandfathered,” banks and lenders require a certain damage and reconstruction threshold percentage to again minimize the risk to their investment.
With zoning codes ever-changing, a zoning report provides confidence to the lender and investors that the current and future use of the property will comply with local laws.