By: Derek M. Jorgensen, Esq.
If you are thinking of signing a long-term commercial lease or purchase of commercial property, one of the most critical items to obtain prior to executing a lease or contract is a zoning confirmation letter from the county or municipality where the property is located. The zoning confirmation letter will state the allowable uses of the property, so you can confirm that your intended use will be permitted under the property’s zoning designation.
Zoning laws divide properties into zones which dictate how the properties may be used. Some examples of zoning designations are residential, commercial, agricultural, and industrial. Zoning designations primarily exist to create a well-balanced community and regulate growth.
When we are handling a closing for a commercial property, we always order a zoning confirmation letter with the applicable municipality or county. It is a special letter issued by a local government verifying whether a particular use can take place at a property. At minimum a zoning confirmation will verify the zoning district where the property is located and identify permitted uses for the property.
When ordering a zoning confirmation letter, we typically request more than just the zoning designation. We include a cover letter with additional questions to learn as much as possible about the property. Inquiries we may ask include:
Sometimes the municipality will answer these questions; other times the municipality will only provide their standard, form letter.
Understanding applicable zoning laws is critical in every commercial real estate transaction. Failure to confirm the zoning of property prior to lease or purchase of commercial property can have severe consequences if the business you intended to operate cannot be done legally in the zoning district where the property is located.
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