A Zoning Compliance Report is a necessary component of acquisition due diligence. As well as being an informative assessment for a potential buyer, Zoning Compliance Reports are often required by lenders. Partner’s Zoning Compliance Reports can be completed within three weeks at very competitive rates. Our zoning team offers the expertise of senior professional planners, civil engineers, and legal professionals to provide insight on even the most complex challenges.
Zoning is a system of codes used for developing a municipality, generally a city or county, in which various geographic areas, or “zones,” 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.
Partner offers several types of zoning assessments. For transaction parties, Partner offers a Zoning Compliance Report which 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 Compliance Report outlines whether or not a property conforms to, or is in compliance with, local zoning code. Combining the Zoning Compliance Report with the ALTA Land Survey is a thorough, cost effective option to present a more complete picture of the property.
For additional depth, a Permits & Approval Report will research every permit, approval, violation, and related information on file for a property to summarize the history of the site, provide clients with full documentation, and bring any violations to light.
To investigate a change of use for new construction, rebuilds or adaptive reuse projects, Partner offers a full-service Feasibility Study that will assess not only zoning ordinances but utility services, traffic generation, stormwater and slope constraints, and other land use planning factors that can affect the viability of the project. Read more about Feasibility Studies here.
Zoning due diligence has become a necessary process in every real estate investment transaction. Lenders, insurers, and buyers need to minimize their risk and ensure their investment is smart, safe and profitable.
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,” lenders require a certain damage and reconstruction threshold percentage to again minimize the risk to their investment.
With zoning codes ever-changing, a Zoning Compliance Report provides confidence to the lender and investor that the use of the property will complies with local laws.