One of the biggest mistakes that novice real estate investors make is to purchase a commercial property without first checking the zoning regulations relating to that property. The fact is, some Minnesota properties have been legally zoned so that they can only be used for certain types of commercial purposes. For example, you might have bought a property where you hope to process gravel, only to later discover that your property is not zoned for such industrial purposes.
The basic function of Minnesota zoning laws is to divvy up a city into specific zones for residential, industrial and commercial purposes. This way, when you lying in bed at night trying to get to sleep in a residential property zone, you will not have to listen to the saws at the lumber yard. By keeping industrial, commercial and residential zones separate, Minnesota cities stay better organized and offer a more pleasant, pollution-free experience for residents.
Zoning laws, however, are more complicated than just three types of properties. Within each zone, one will find more restrictions that can be very detailed and relate to:
— The types of buildings permitted
— The locations of utility lines
— Restrictions pertaining to accessory buildings
— How close buildings can be to the road
— The length and size of buildings
— How many rooms buildings can have
— The cost of buildings
— How the buildings can be used
— Whether residential buildings can be single-family or multiple-family, etc.
— Restrictions on historic landmarks
Because zoning laws are different for every city and every part of that city in Minneapolis, real estate investors may want to investigate a potential purchase and how it is zoned before making the investment. Having an experienced real estate lawyer review an investment property, and one’s goals for that property, can be a vital part of ensuring one does not make any investment mistakes in this regard.
Source: FindLaw, “Land Use and Zoning Basics,” accessed Dec. 14, 2016