When working with a buyer or a lender, you are responsible for interpreting local zoning ordinances and advising your client. Our zoning report company shares the most important steps—from ordering a land survey to getting final signatures.
With years of expertise as one of the fastest-growing commercial due diligence firms in the nation, National Due Diligence Services (NDDS) provides a streamlined and efficient Zoning Report process. Read on for the most important FAQs on the subject.
What is a Zoning Report?
This report outlines a property’s conformance status, permitted uses, and violations, as well as the potential impacts of planned development restrictions. Before an acquisition or refinance, a buyer, lender, or attorney will initiate the process to ensure the designated investment is both compliant and protected.
Why Do I Need a Zoning Report?
Not only is obtaining a Zoning Report an important component of due diligence, but the process can also provide helpful insight into the zoning conditions of a
Property. A Zoning Report also provides the necessary information needed for specific zoning endorsements within a title insurance policy and is an integral component of an ALTA/NSPS land title survey.
For those who are interested in lending or buying, a Zoning Report can minimize risk and help keep the property value from decreasing at a later point in time. This document is often required by lenders in order to secure financing, which would typically include having a zoning endorsement within their title insurance policy for a property.
Why Should I Hire a Zoning Provider?
It is beneficial to consult the expertise of a zoning provider that has a wealth of industry knowledge for even the most complex of zoning challenges. NDDS offers 25 years of hands-on experience with a wide range of real estate due diligence services, ranging from single sites to multi-state projects.
This level of expertise in the field is critical because ordinances are complex and sometimes shift without warning. Many older, legally nonconforming, or “grandfathered” properties do not meet the requirements of new regulations. This distinctive label means they are still protected to some degree—even if these properties do not align with new zoning standards.
Overlay zoning (a second layer of standards on two or more existing zoning districts) is a second important term that allows for specific areas to operate as tailored entities with their own set of regulations.
This type of zoning is often seen in areas like airport zones, affordable housing, historic areas or sensitive habitats, and transit-oriented development. A zoning report provides a detailed analysis of the intricacies of the property and any notices of legal nonconformity, overlay zoning regulations, or code violations.
Do I Need Complete Property Information Before Starting?
The initial stages of a zoning report begin with a professional zoning analyst gathering the needed municipal documentation. A client can help by providing accurate property information in order for the analyst to specifically identify a site and begin their research.
Municipalities often change or update their zoning codes and/or districts, so it is important to have accurate, upfront parcel information.
How Long Will It Take NDDS to Deliver My Zoning Report?
The standard process, when compiled by our experienced Zoning Professionals, typically takes two to three weeks. Often this is dependent upon a cooperative jurisdictional zoning department. Many jurisdictions are burdened with minimal staffing and overwhelming public workload.
However, it is common to provide a preliminary zoning report prior to receipt of the necessary documentation. This helps keep our client’s transaction process moving forward. Once all documents are received, this allows our team to complete the in-depth analysis and report detailing the compliance status.
NDDS’ Zoning Report includes several key items:
- Zoning Verification Letter from the controlling jurisdiction
- Review of any building, fire, or zoning violations
- Building permits, if applicable
- Certificates of occupancy
- A complete review of all applicable zoning code sections
- A thorough review of an ALTA survey
- Current conformance status
Do I Need an ALTA Survey to Submit a Zoning Report?
An ALTA survey is an integral part of determining the conformance status of a property. Zoning-related items, such as building setbacks, height, density, signage, parking, and other observed items, would be acquired while performing the ALTA survey.
The survey should therefore contain Table A Items 4, 7, and 9 in order to successfully finalize the zoning report. If any of these observed items do not meet the current jurisdictional requirements, the site could be considered out of conformance and put the brakes on a client’s transaction.
Schedule Your Zoning Report Today
Visit our website to learn more about our Zoning Report services and request a quote or speak directly with a member of the NDDS team.