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Dealing with zoning regulations can be one of the most challenging processes in Commercial Real Estate. LightBox PZR is here to help.

David K. Anderson
October 28, 2022 2 mins

Because zoning laws come into play on every commercial real estate transaction, it’s critical for commercial real estate buyers to understand the zoning restrictions and compliance regulations related to any given property. The manner in which a previous owner or occupant used a structure doesn’t always extend to future occupants or owners. Among many possibilities, a previous owner may have had a variance, or a municipality may not have been aware of an unpermitted use that won’t be allowed when a new owner takes over.

Zoning laws regulate the nature of business, parking, waste disposal, and signs. They cover a range of potential issues such as covenants that add additional restrictions or prohibit specific uses such as changing the exterior appearance of a property or restricting the way a business operates; easements that can bestow public access on private property; or environmental laws that may require local, state, and/or federal inspections and permits. Zoning and planning boards typically want to approve development projects that improve the community or involve infrastructure upgrades such as new roads or improved sewer systems; these may require a zoning compliance permit. All of this makes managing the zoning process especially complex.

LightBox PZR specializes in providing zoning due diligence documents such as zoning reports, letters, and documents so that title insurers, underwriters, buyers, and attorneys can make informed decisions about a property. With close ties to 99 percent of U.S. municipalities, LightBox PZR offers unmatched range and scope and has provided zoning compliance reports on billions of dollars in transactions every year. LightBox PZR reports provide information for 3-06, 3.1-06 & 3.2-06 zoning endorsements. They are accepted by every major lender and title company in the U.S., including Fannie Mae and Freddie Mac, and provide due diligence necessary for the issuance of zoning endorsements and law and ordinance policies.

LightBox PZR has played an integral role in some of the largest multi-site transactions on record, as well as in single site transactions financed by local and national lenders. We specialize in obtaining zoning and building code documents in all 50 states using a team of information specialists who are experts in the field of document acquisition. With access to a database of over 20,000 municipal contacts and a zoning library of over 6,000 zoning ordinances, our document acquisition team can coordinate and collect information with great speed and efficiency, including zoning verification letters, zoning reports, building and zoning code violation letters, certificates of occupancy, building permits, variances, planned unit developments, site plans, zoning codes, and certificates of zoning compliance. LightBox PZR’s independent reports set the standard for answering conformance questions for zoning due diligence, title endorsements, and insurance needs, and provide reliable site zoning analysis and compliance review.

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