6 Reasons Due Diligence is Necessary

684 views

Published on

PZR (The Planning and Zoning Resource Corporation) is America's leading Zoning Consultant. Zoning Reports, Commercial Zoning Reports, Zoning Letters, ALTA/ACSM Surveys, Zoning Compliance and many other products are offered by our professional team. If you need to analyze the risk associated with a commercial property purchase, this company is very helpful. The Planning and Resource Corporation (PZR Report) has access to over 100,000 zoning reports in the US and Canada and carry one million dollars aggregate coverage for any report/occurance within a coverage year. Don't rely on the zoning companies who employee one or two persons from their home. Avoid costly mistakes and surprises- contact the professionals at PZR (Planning and Zoning Resource Corporation) for a free project quote.

Published in: Real Estate, Business, Technology
  • Be the first to comment

  • Be the first to like this

6 Reasons Due Diligence is Necessary

  1. 1. 6 Reasons Buyers and Lenders need a Commercial Zoning ReportReason 1--------------A current or prior change in the zoning designation of property raises complex issues. A zoning changecould result in a loss of property value and lending value. Prospective buyers, lenders, bankers, realestate attorneys and title insurance companies must complete Zoning Due Diligence to analyze the riskassociated with the commercial property in order to avoid costly problems in the future.Reason 2-----------------A zoning compliance permit will find out if the property is properly zoned for the nature of business thatis planned. Zoning laws regulate nature of business, parking, waste disposal, signs, etc.. A zoningreport lets property owners know what and how they can build on their property. The Planning andZoning Resource Corporation will issue zoning endorsements related to property conformance ofProperty Use, Property Setbacks, Height, Density, Open Space and/or Lot Coverage, Landscape Buffersand Parking. Reason 3------------------A Certificate of Zoning Compliance and a Building Permit must be obtained before beginning anyconstruction, alteration or enhancement of the planned business site. Pre-existing property uses andstructures may require legislative remedy. A building in existence at the time a new zoning law isadopted is said to be “grand-fathered” or “legally nonconforming” and cannot be declared“nonconforming” or in violation. If the legally nonconforming structure is destroyed beyond thethreshold set forth in the Code, the owner may be allowed to rebuild only in accordance with presentzoning laws.Reason 4-------------------Certain states require buyers to conduct a thorough due diligence. For example, New Jersey legallyrequires the buyer to conduct a thorough zoning due diligence investigation before purchasing orbuilding a commercial property.Reason 5------------------Lenders want to be sure that their loans are protected. Title insurers are in need of this informationwhich enables them to write their Zoning Endorsements (where available). Zoning compliance hasbecome an important factor on the closing checklist. Law and Ordinance Coverage consists of threeseparate coverage areas. Building Ordinance Coverage will cover the value of the undamaged portion ofthe building that must be demolished should the casualty exceed the percentage threshold set by theRebuild Clause of the Code. Demolition Cost covers the cost to actually demolish the undamagedportion of the structure once it is declared a total loss. Finally, Increased Cost of Coverage provides theadditional cost sustained in building to new code requirements such as windstorms, earthquakes, fire.
  2. 2. Reason 6-------------------Local jurisdictions often change their zoning rules and ordinances. This might trigger a property tobecome noncompliant to current code and subject to future changes. Before purchasing any commercialproperty, consult the professionals at the Planning and Zoning Resource Corporation in order to conductZoning Due Diligence and prepare the commercial zoning endorsement, property conformance, zoningletter, zoning report, law and ordinance coverage, discover nonconforming property and analyze the riskassociate with purchasing the commercial property.Zoning Experts and FirmsThe 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 thirdparty zoning compliance report. These firms also provide assistance to resolve any zoning complianceissues. PZR, Inc. (www.pzr.com - The Planning and Zoning Resource Corporation) is a Zoning Advisory andDue Diligence firm which helps buyers (individuals, banks, businesses, etc.), real estate lawyers, titlecompanies, mortgage companies and others with researching and supplying Zoning Due Diligence. PZRhas been the industry leader for over a decade and has created their own library and have over 20,000municipal 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 • Zoning Endorsements b) An independent commercial zoning report, known as the PZR Report®: • Sets the standard for answering your conformance questions for zoning due diligence, title endorsements, lending requirements and insurance needs. • Provides reliable site zoning analysis and compliance review. c) The PZR Report® is supported by local municipal documentation that provides the property owner, title insurer, finance company and real estate attorneys with an accurate and legal endorsement 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.
  3. 3. About:The Planning and Zoning Resource Corporation www.pzr.comPZR is the Zoning Advisory firm which analyzes the risk associated withcommercial 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 aneasy, cost effective and quick manner.

×