6 Reasons Buyers and Lenders need a Commercial Zoning Report

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6 Reasons Buyers and Lenders need a Commercial Zoning Report.

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6 Reasons Buyers and Lenders need a Commercial Zoning Report

  1. 1. 6 Reasons Buyers and Lenders Need A Commercial Zoning Report http://www.pzr.com The Planning & Zoning Resource Corp. (800) 344-2944
  2. 2. http://www.pzr.com The Planning & Zoning Resource Corp. (800) 344-2944 Reason 1 <ul><li>A current or prior change in the zoning designation of property </li></ul><ul><li>raises complex issues. A zoning change could result in a loss of </li></ul><ul><li>property value and lending value. </li></ul><ul><li>Prospective buyers, lenders, bankers, real estate attorneys and title </li></ul><ul><li>insurance companies must complete Zoning Due Diligence to </li></ul><ul><li>analyze the risk associated with the commercial property in order to </li></ul><ul><li>avoid costly problems in the future. </li></ul>
  3. 3. http://www.pzr.com The Planning & Zoning Resource Corp. (800) 344-2944 <ul><li>A zoning compliance permit will find out if the property is properly </li></ul><ul><li>zoned for the nature of business that is planned. Zoning laws </li></ul><ul><li>regulate nature of business, parking, waste disposal, signs, etc. </li></ul><ul><li>A zoning report lets property owners know what and how they </li></ul><ul><li>can build on their property. </li></ul><ul><li>The Planning and Zoning Resource Corporation will issue zoning </li></ul><ul><li>endorsements related to property conformance of Property Use, </li></ul><ul><li>Property Setbacks, Height, Density, Open Space and/or Lot </li></ul><ul><li>Coverage, Landscape Buffers and Parking. </li></ul>Reason 2
  4. 4. http://www.pzr.com The Planning & Zoning Resource Corp. (800) 344-2944 <ul><li>A Certificate of Zoning Compliance and a Building Permit must </li></ul><ul><li>be obtained before beginning any construction, alteration or </li></ul><ul><li>enhancement of the planned business site. </li></ul><ul><li>Pre-existing property uses and structures may require legislative </li></ul><ul><li>remedy. A building in existence at the time a new zoning law is </li></ul><ul><li>adopted is said to be “grand-fathered” or “legally nonconforming” </li></ul><ul><li>and cannot be declared “nonconforming” or in violation. </li></ul><ul><li>If the legally nonconforming structure is destroyed beyond the </li></ul><ul><li>threshold set forth in the Code, the owner may be allowed to rebuild </li></ul><ul><li>only in accordance with present zoning laws. </li></ul>Reason 3
  5. 5. http://www.pzr.com The Planning & Zoning Resource Corp. (800) 344-2944 Certain states require buyers to conduct a thorough due diligence. For example, New Jersey legally requires the buyer to conduct a thorough zoning due diligence investigation before purchasing or building a commercial property. Reason 4
  6. 6. http://www.pzr.com The Planning & Zoning Resource Corp. (800) 344-2944 <ul><li>Lenders want to be sure that their loans are protected.Title </li></ul><ul><li>insurers are in need of this information which enables them to </li></ul><ul><li>write their Zoning Endorsements (where available). Zoning </li></ul><ul><li>compliance has become an important factor on the closing </li></ul><ul><li>checklist. </li></ul>Reason 5
  7. 7. http://www.pzr.com The Planning & Zoning Resource Corp. (800) 344-2944 <ul><li>Law and Ordinance Coverage consists of three separate </li></ul><ul><li>coverage areas. Building Ordinance Coverage will cover the </li></ul><ul><li>value of the undamaged portion of the building that must be </li></ul><ul><li>demolished should the casualty exceed the percentage threshold </li></ul><ul><li>set by the Rebuild Clause of the Code. </li></ul><ul><li>Demolition Cost covers the cost to actually demolish the </li></ul><ul><li>undamaged portion of the structure once it is declared a total loss. </li></ul><ul><li>Finally, Increased Cost of Coverage provides the additional cost </li></ul><ul><li>sustained in building to new code requirements such as windstorms, </li></ul><ul><li>earthquakes, fire. </li></ul>Reason 5
  8. 8. http://www.pzr.com The Planning & Zoning Resource Corp. (800) 344-2944 <ul><li>Local jurisdictions often change their zoning rules and </li></ul><ul><li>ordinances. This might trigger a property to become </li></ul><ul><li>noncompliant to current code and subject to future changes. </li></ul><ul><li>Before purchasing any commercial property, consult the </li></ul><ul><li>professionals at the Planning and Zoning Resource Corporation in </li></ul><ul><li>order to conduct Zoning Due Diligence and prepare the commercial </li></ul><ul><li>zoning endorsement, property conformance, zoning letter, zoning </li></ul><ul><li>report, law and ordinance coverage, discover nonconforming </li></ul><ul><li>property and analyze the risk associate with purchasing the </li></ul><ul><li>commercial property. </li></ul>Reason 6
  9. 9. http://www.pzr.com The Planning & Zoning Resource Corp. (800) 344-2944 Zoning Experts and Firms <ul><li>The hassle of zoning due diligence and acquiring a Commercial </li></ul><ul><li>Zoning Report can be avoided by hiring a Zoning Research and </li></ul><ul><li>Due Diligence firm. </li></ul><ul><li>Professional zoning firms can typically acquire all the documents in </li></ul><ul><li>a timely manner plus provide a third party zoning compliance report. </li></ul><ul><li>These firms also provide assistance to resolve any zoning </li></ul><ul><li>compliance issues. </li></ul>
  10. 10. http://www.pzr.com The Planning & Zoning Resource Corp. (800) 344-2944 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.), real estate 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.
  11. 11. The Planning & Zoning Resource Corp. (800) 344-2944 http://www.pzr.com About: PZR is the Zoning Advisory firm which analyzes the risk associated with commercial property transactions and provides all available Zoning Documents. Request a quick project quote or a Zoning Compliance Report (PZR Report® ) which is supported by municipal documents and Land Title Survey review in an easy, cost effective and quick manner. The Planning and Zoning Resource Corporation www.pzr.com
  12. 12. America's Leading Zoning Consultant Creator and Sole Provider of the PZR Report ® Request a Free Quote Get the answers you need, today. http://www.pzr.com

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