Make Sure Your Zoning issues Are Resolved Before You Apply For a Commercial Property Mortgage
If you’re trying to purchase a property and want to change it’s use and require a change in zoning to accomodate your plans, make sure that you have all the local authorities signed off before you apply for a commercial property mortgage.
The lender will require that the zoning is complete before finalizing the mortgage which will also not allow you to complete the sale with the vendor.
Prematurely entering into a purchase and sale agreement for the property subject to financing will end up potentially costing you legal fees, appraisal fees, environmental audit fees, and so on if the zoning doesn’t go through.
