Approvals/Permits before purchasing property

[Jon H.]

I've noticed a few threads where people state that the jurisdiction approvals/permits should be obtained prior to purchasing a property.  I'm curious how this process plays out if you haven't bought a property yet.  Do you approach a jurisdiction with a report proposal or conceptual drawings in order to confirm they would approve?

I've been researching a new build project and when I tried to get detailed information from the County's electric company, I was told I had to be the Owner to request further info or get a meeting.  This was in regards to relocating a pole/overhead wiring.  This is a very specific case which is why I may have received this response. 

It'd be unfortunate to buy a plot of land or existing home and be told later on that your project won't be approved.  This will obviously vary by County but am curious to hear people's experience in this process.  What was the sequence of events for your due diligence before buying a property?

[John Teachout]

I know that in cases where a rezoning is required, the sale can be made contingent on that approval. ie, a piece of property where someone wants to build a commercial building that isn't appropriately zoned for it...

[Jon H.]

Originally posted by @John Teachout:

I know that in cases where a rezoning is required, the sale can be made contingent on that approval. ie, a piece of property where someone wants to build a commercial building that isn't appropriately zoned for it...

That's one of the scenarios that I was referring to.  Do you have experience in that process?  Does the current Owner have to be involved in that process? 

[Greg Dickerson]

Originally posted by @Jon H.:

I've noticed a few threads where people state that the jurisdiction approvals/permits should be obtained prior to purchasing a property.  I'm curious how this process plays out if you haven't bought a property yet.  Do you approach a jurisdiction with a report proposal or conceptual drawings in order to confirm they would approve?

I've been researching a new build project and when I tried to get detailed information from the County's electric company, I was told I had to be the Owner to request further info or get a meeting.  This was in regards to relocating a pole/overhead wiring.  This is a very specific case which is why I may have received this response. 

It'd be unfortunate to buy a plot of land or existing home and be told later on that your project won't be approved.  This will obviously vary by County but am curious to hear people's experience in this process.  What was the sequence of events for your due diligence before buying a property?

 Correct. You do not want to close on the property until you get all the approvals and permits. You also want to tie the purchase price to the density you think you can get. You can approach the city or county initially to get a rough idea of what you can do and the process and timeframe to get approvals but you can't start the actual approval process without all the proper plans, engineering, specifications etc. as required depending on what it is your looking to build. This is going to cost a good amount of money so you defiantly need to have a contract to purchase before you spend any money on due diligence and approvals. You will also need a contract and letter of authorization to act on behalf of the owner for issues like the power company etc.

[John Teachout]

Originally posted by @Jon H.:

Originally posted by @John Teachout:

I know that in cases where a rezoning is required, the sale can be made contingent on that approval. ie, a piece of property where someone wants to build a commercial building that isn't appropriately zoned for it...

That's one of the scenarios that I was referring to.  Do you have experience in that process?  Does the current Owner have to be involved in that process? 

Not as a buyer or seller but I've observed it taking place numerous times. Yes, the seller needs to be involved. (Usually the buyer and seller work together on it as they both will achieve a benefit)

This isn't a big deal if someone is buying a house and want to open a beauty shop in it. If it doesn't work out, they still have a house they can sell. Where I've seen it is primarily vacant land that someone wants to develop. This sometimes involves zoning, willingness of the municipality to extend utilities to it, and so forth.