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What happens if you discover undisclosed zoning issues after buying a property?

On Behalf of | Apr 19, 2024 | Real Estate Contract Disputes

Sellers are legally obligated to disclose relevant information about their property, which could significantly influence buyers’ decisions. They must reveal the property’s physical condition, history, previous repairs, hazards and neighborhood information to potential buyers. Among these details, failing to inform about zoning issues could impact the property’s value and intended use. The buyer can pursue legal action if the property seller did not disclose this critical information.

Undisclosed zoning issues limit property use

Zoning regulations dictate how residents and business owners can use their property in a specific area. These rules assign geographic zones as residential or commercial. Zoning also defines the allowed business types, accepted architectural designs and permitted structure height in the area.

Failing to disclose this information limits how buyers use the property they bought. For example, when a buyer intends to renovate a property and make it a lodging establishment, zoning regulations could affect their plans for the number of floors, distance from other establishments, building design or parking requirements.

Buyers can pursue legal action

Undisclosed information in real estate transactions could lead to disputes between sellers and buyers. Additionally, discovering a property’s zoning issues after closing the deal could be stressful for buyers. In this situation, buyers have the right to pursue legal action to seek remedies, such as monetary damage for expenses incurred while addressing the zoning concerns. The court might also allow contract cancellation due to misrepresentation or breach. Buyers would benefit from the practical knowledge of experienced real estate lawyers to protect their rights as property owners.