Commercial Lenders demanding Zoning Conformance Reports
Essentially all Commercial Lenders today are insisting on Zoning compliance and conformance evidence prior to funding. Lenders require that the property be in compliance with applicable zoning ordinances with respect to usage, parking, setbacks, height, density, coverage requirements and more.
Lenders want to be sure that their loans are protected in light of the past few years of financial mortgage meltdown. Zoning compliance has become a major factor on the closing checklist. The importance of zoning compliance is especially important to the Lender who is needing to know that the property can be re-constructed to the same building configuration in the event of massive casualty. Title insurers are particularly in need of this information which enables them to write their Zoning Endorsements (where available). And what Buyer does not need to know how the municipality will treat their property should their property be severely damaged by fire or other natural disaster?
Zoning Evidence and Closing Delays
a) The absence of clear Zoning Compliance may delay closing, even in what seems to be a simple straightforward transaction.
b) Getting evidence for Zoning Compliance may not be as easy as going to the municipal/local authorities. Below are some of the challenges and issues you might want to be aware of:
- Zoning rules and local ordinances keep changing.
- The Zoning documents provided by the municipal/local authorities might be old or might not reflect the recent changes.
- Collecting all the municipal documents and analyzing them to make sure the property is compliant can take a huge amount of time and resources.
- Some municipalities issue zoning documents quickly while others take weeks or even months. These documents might not reflect the current zoning compliance in black and white. Further research and analysis is needed which can be very time consuming.
PZR® – A Zoning Due Diligence Firm
The hassle of zoning due diligence can be avoided by hiring us – we are a Zoning Research and Due Diligence firm. We can typically acquire all the documents in a timely manner plus provide a third party zoning compliance report. We can also provide assistance to resolve any zoning compliance issues.
Our customers are mostly buyers (individuals, banks, businesses, etc.), lawyers, title companies, mortgage companies, lenders, etc. PZR®
has been the industry leader for over a decade and has created their own library and have over 20,000 municipal contacts (quick service) and offers the following services:
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®
- 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
b) An independent zoning report, known as the PZR Report®
- Sets the standard for answering your conformance questions for zoning due diligence, title endorsements and insurance needs.
- Provides reliable site zoning analysis and compliance review.
c) The PZR Report®
is supported by local municipal documentation that provides your staff with a reliable, independently confirmed statement that speaks to the compliance status of the property.
also provides assistance in resolving specific zoning issues or non-conformities that are revealed out of this review process.