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How do zoning laws impact real estate development?

On Behalf of | May 15, 2023 | Real Estate & Development

If you are interested in buying commercial real estate, developing a piece or property or building a new home, it is crucial to understand how zoning ordinances work.

Buying real estate with an unsuitable zoning designation can impede your ability to build new structures or conduct business. However, there are steps you can take to research local ordinances and resolve zoning problems.

Different zoning designations

Common types of zoning ordinances include agricultural, residential, commercial and industrial. Different designations allow and restrict certain activities and uses of the land. For instance, there are restrictions on operating a business in many residential areas. Certain commercial zones may have parking requirements that limit what you can do. Setback guidelines also regulate how far from a property line you can construct a building.

Real estate development and zoning laws

As a real estate developer, it is crucial to research a piece of property fully before you buy it, which includes determining its zoning designation. Local ordinances can vary, so it is important to check the rules in your area. Zoning regulations determine what you can and cannot do as a property owner. It can be difficult to accomplish your ambitions if your intended use for the property does not suit the current zoning designation.

Fortunately, it is possible to acquire permits or variances that allow you to use the property in ways that differ from what the current zoning designation allows. This can enable you to develop the property in a way that aligns with your goals.

Zoning regulations determine how you can use your property. Therefore, it is essential to learn about zoning when purchasing real estate.