As a business owner, you are looking to purchase new real estate to expand your operations. You know that whatever property you buy will need extensive renovations, so you have been talking to construction companies to get the job underway. You are going to invest a substantial amount of money, not just in buying the property itself, but in making the necessary changes.
One important step to take first is to determine if the property is in the correct zone. Real estate can be separated into numerous different zones by the local municipality, with three of the most common being commercial, residential and industrial. You need to ensure that the property you are thinking about purchasing and renovating is actually in a zone that will permit you to use it as intended. If not, you may not be able to open operations, which could be a very costly mistake.
What if it is in the wrong zone?
If the property is in the wrong zone, it does not necessarily mean you cannot use it. You just have to get permission from the local government to do something that does not adhere to the zoning regulations. You will ask for a variance, and, if it is granted, then you may be able to use that property. A variance for a residential property could allow commercial operations, for example.
This is a much simpler step than waiting until the zones are redrawn or altered by the city. A variance does not even change the zone at all. All other properties within that zone are still bound to the same regulations. But if you have a variance for your business, then you are allowed to break those regulations in a specific way without having to worry about having the business shut down by the local authorities.
This may sound like a simple process, but it can be very complex, and the future of your company hangs in the balance, so be sure you know exactly what legal steps to take.
