Zoning

[Melissa N.]

Would you buy a property that is currently zoned for multifamily (over 5 units) but if it ever burned down it had to be converted to Residental? Is that a thing!? My realtor says this property cannot be rebuilt as multi-family if anything ever happened. I have to call the town but it's good Friday so all has stopped. 

Thoughts? How do you think this will impact resale later on? 

[William Jenkins]

I would need to know more about the property but here is the likely situation:

The property is probably zoned single family residential even though a multifamily structure exists on the property now. The building was either built before the area enacted zoning laws, or the property was rezoned to a less intense use sometime in the past.

Either way you now have what is called a legal non-conforming use. In general you can continue to operate the building as is, but you will never be able to rebuild or substantially alter the building in any way.

In short, yes this does affect value in a negative way but the degree will be based on your location and market as well as how much of the total property value is attributable to the land itself.

This is a generalized response only and you should certainly do your own research and consult a local real estate attorney if necessary.