Zone
Zoning Due Diligence and the Real Estate Industry
In fact, New Jersey legally requires the buyer to conduct a thorough zoning due diligence investigation before purchasing or building a commercial property. Real Estate lawyers advise their clients (or complete it on their behalf) to perform complete Zoning Due Diligence. Zoning due diligence also educates the buyer and allows for more informed negotiations.
Below are instances in which a zoning due diligence investigation will identify: Number of parking spaces in existence is less than what was approved by a series of zoning variances.
- Property cannot be used for new business.
- Part of the building structure is not in compliance.
- Property is involved in a legal dispute unknown to others
- Zoning codes have recently changed and require remodeling/additions
- Much more…
In fact, interviews with the local/municipal officials may be required to get a complete picture. Banks/Lenders require that the property be in compliance with applicable zoning ordinances with respect to usage, parking, setbacks, height, density, coverage requirements and more. Zoning compliance has become a major factor on the closing checklist.
Zoning Due Diligence:
Zoning due diligence is the term used when collecting all relevant documents, interpreting them and compiling into a report utilized for financing purposes. This process can become a tedious and time consuming task. Zoning laws and ordinances are very dynamic. Some municipalities issue zoning documents quickly while others take weeks or even months.
Zoning Experts and Firms:
The hassle of zoning due diligence can be avoided by hiring a Zoning Research and Due Diligence firm. Professional zoning firms can typically acquire all the documents in a timely manner plus provide a third party zoning compliance report. These firms also provide assistance to resolve any zoning compliance issues.
PZR, Inc. (www.pzr.com – The Planning and Zoning Resource Corporation) is a Zoning Advisory and Due Diligence firm which helps buyers (individuals, banks, businesses, etc.), lawyers, title companies, mortgage companies and others with researching and supplying Zoning Due Diligence. PZR has been the industry leader for over a decade and has created their own library and have over 20,000 municipal contacts (quick service) and offers the following services:
a) PZR will work to obtain all available municipal documents- which saves time from traveling to various municipal locations and locating or researching the documents in person. Documents PZR provides:
- Zoning Verification Letters
- Zoning Reports (PZR Report)
- Building and Zoning Code Violation Letters
- Certificates of Occupancy
- Building Permits
- Variances (Special Use Permits or Conditional Use Permits)
- Planned Unit Developments
- Site Plans
- Zoning Codes
b) An independent zoning report, known as the PZR Report®:
- Sets the standard for answering your conformance questions for zoning due diligence, title endorsements and insurance needs.
- Provides reliable site zoning analysis and compliance review.
c) The PZR Report® is supported by local municipal documentation that provides your staff with a reliable, independently confirmed statement that speaks to the compliance status of the property.
d) PZR also provides assistance in resolving specific zoning issues or non-conformities that are revealed out of this review process.
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