The current real estate market is all about foreclosures, auctions and quick and dirty sales. There's little or no due diligence done on any real estate "transactions" these days and, worse, many buyers (and bidders) rely on incorrect due diligence findings discovered during very quick due diligence reviews. There are numerous due diligence traps, but one of the more common is to simply consult a local zoning map to determine zoning entitlements applicable to a property only to later discover the zoning map is incorrect. What? How could this be?
Why zoning maps show incorrect zoning districts designations for properties
Some municipalities and counties are simply behind on updating their zoning maps. The maps still show old zoning districts for several properties. You must research the public records and zoning files to determine the correct, applicable zoning district for a property. Also, some municipalities and counties had, or have, policies that zoning maps are not updated or modified until all zoning stipulations of approval have been satisfied on a site or until site plan approval has been obtained.
Tell me more about "stipulations"
Stipulations are frequently attached to requests to rezone property from one designation to another. Stipulations often require landscaping, screening and/or right of way exactions beyond that required by the local zoning code. Another very popular stipulation is to require that a site be built in conformance with an approved site plan. Typically, stipulations can only be modified or removed via a public hearing process. Watch those stips!
But wait, won’t planning staff give correct land use entitlements for a property?
Maybe not. Many city planning departments have been hit with severe lay offs. The result is zoning counters are staffed by people that may have absolutely no planning or zoning experience. These folks are well intended, but they may not understand what files need to be reviewed and they likely don't even know their city zoning maps are incorrect.
What about zoning verification letters?
Zoning Verification letters are written by the same well intended people who staff the zoning counter. Remember the general rule: municipalities and counties are not responsible for the acts of their employees. So, how much is that letter worth? Well, maybe enough to satisfy a not particularly savvy lender, but probably not enough to throw your hand up at an auction.
