Zoning, Permits, and Red Flags: What to Check Before You Buy

Not all commercial properties are created equal. A property’s value and future usability depend heavily on local zoning ordinances, development restrictions, and compliance with building codes. 

Before you sign a purchase agreement—or invest in costly improvements—conducting legal due diligence is essential. 

1. Zoning Classification 

Verify the property's current zoning designation and whether it aligns with your intended use (e.g., retail, office, industrial, multifamily). Even if the use seems consistent with surrounding properties, it must be legally allowed. 

If your use is not currently permitted: 

• You may need to apply for a conditional use permit or zoning variance 

• Rezoning is possible but time-consuming and not guaranteed 

  
  

2. Nonconforming or Grandfathered Uses 

Some properties may be operating under a grandfathered status that allows otherwise disallowed uses. These rights can be lost if the use ceases for a certain period or changes materially. 

Confirm with the zoning office whether the existing use is legally protected and transferable to a new owner. 

3. Permits and Code Compliance 

Check whether: 

• All existing structures and additions were permitted 

• Occupancy permits are current 

• Environmental clearances (e.g., floodplain or wetland considerations) are satisfied 

Unpermitted improvements can cause delays, require costly retroactive approvals, or lead to fines. 

4. Development Restrictions or Overlays 

Investigate whether the property falls within: 

• Historic districts 

• Special zoning overlays 

• Urban design or signage restrictions 

These may affect your ability to modify the structure, change the use, or install exterior features. 

At Title Stream, our attorneys and title professionals perform in-depth due diligence to help buyers identify legal risks before closing. We work to uncover red flags early—so you can move forward with confidence or renegotiate accordingly.