During a commercial property purchase, it is very important to understand exactly what the zoning regulations state for that specific property. This is especially true when it will be used for a future commercial operation or as part of a development project. It must be in the correct zone for operations to legally begin without conflicts with the local municipal government.
In some cases, a potential property may be in the wrong zone. A commercial entity may want to buy a property, for example, but it turns out that it has been zoned for residential or industrial use.
One way to address this type of conflict is to apply for a zoning variance. If the variance is granted, then it may be possible to use the property as intended. However, it is important to obtain the variance upfront, and this is often an issue that should be addressed long before the property transfer takes place.
The zoning status stays the same
One key thing to note about a variance is that it does not change zoning regulations or rules for any adjacent properties. The zone remains the same, whether it is commercial, residential or industrial.
Instead, the variance permits that property owner to use the property in a way that would otherwise violate zoning regulations. This applies only to that one specific case. Adjacent property owners who want to pursue the same type of use would need to apply for their own variances and could not rely on the existing variance to give them legal justification to break those regulations.
Zoning issues can complicate a commercial real estate transfer or cause land use problems after the fact. It is critical that those involved understand exactly what legal steps to take in these situations.