Real Estate Development

Commercial Real Estate Information Center

Real Estate Development

Development of property cannot be done without adherence to local, state, and possibly federal laws and regulations. There are a variety of governmental regulations that control how property is to be developed or altered or even if it can be used for its intended purpose. If you are faced with commercial real-estate issues, consulting an attorney is a good idea. An experienced lawyer is an excellent resource for commercial real-estate information.

Zoning: Variances and Rezoning

Governments create restrictions on the use of real estate by establishing zoning regulations. Zoning is any governmental restriction or requirement that controls the use of a piece of property. This control can cover any use of property, from the construction of certain structures to what sort of animals can be kept. For example, a particular piece of property may be in an area that is zoned for heavy industry. In this case there can be no development of residential or possibly even light industry. If a property owner wants to develop the property for a purpose aside from heavy industry, he or she will have to seek a variance.

If there is a desire to develop a piece of real estate, the first step should be to consult the applicable zoning ordinances. This can be done by visiting the local government office that administers zoning regulations, usually a dedicated office in city hall. Zoning ordinances are public records that contain very specific information about a parcel of real estate, including maps and surveys.

An application for permission to depart from a particular zoning regulation is called a variance application. A variance differs from an administrative process to wholly rezone an area. A variance is a one-time waiver to an existing zoning regulation. Rezoning involves a much more complicated procedure of government rulemaking, community involvement, and public hearings. A variance will ordinarily not be granted to a request for a major deviation from an ordinance, such as for industrial use in a residentially zoned area. A variance would be used to substitute something more minor, such as a request to substitute one type of industrial zoning for another or possibly from retail to apartment use.

Nonconforming Use

Another zoning topic is the nonconforming use. This is a "legal" violation of the current zoning ordinance because a particular structure or use was in existence before the passage of the applicable zoning law. In these instances, the violation might be ignored (depending on the severity and scale) and the particular structure or use could be "grandfathered" into acceptance.

Environmental Protection Issues

A commercial real-estate owner may encounter problems and incur costs to comply with environmental laws and regulations. These laws can be within state, local, or federal jurisdiction. There is a wide assortment of laws that affect real-estate development because of environmental concerns, including the Endangered Species Act, the Clean Water Act, and CERCLA. These laws place restrictions on land use and provide for certain administrative procedures.

Conclusion

Real-estate development must be done with the knowledge that there are laws that control the use of private property. Zoning and environmental regulations must be followed or development could be stopped or delayed. If you are faced with commercial real-estate issues, consult an experienced attorney. A real-estate lawyer would an excellent resource for you.

DISCLAIMER: This site and any information contained herein are intended for informational purposes only and should not be construed as legal advice. Seek competent legal counsel for advice on any legal matter.

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