Introduction to Land Use Controls
Land use controls encompass legislative-based restrictions governing the potential uses of a property. The cornerstone of these controls is typically the local land use or zoning bylaw, accompanied by other factors such as Official Community Plans, Local Area Plans, flood plain restrictions, view plan restrictions, agricultural reserves, and heritage designations. While zoning takes center stage in this discussion, the principles can be broadly applied to other land use controls.
In accordance with the Canadian Uniform Standards of Professional Appraisal Practice (CUSPAP) Real Property Appraisal Standard Rule 9.3, the identification of land use controls, including zoning, is imperative. Moreover, their impact on use and value must be analyzed, considering potential modifications in light of economic demand, physical adaptability, and market trends.
Current Zoning and Land Use Controls
Verification of the current zoning is paramount and can be achieved through various sources. While zoning maps at the appraiser's office and direct contact with planning authorities are common methods, caution is advised. Reliance on outdated information has led to inaccuracies in statements regarding zoning, permitted uses, and analyses of Highest and Best Use. Best practice dictates direct contact with planning authorities, especially if there's any doubt about the accuracy of information on file.
In the digital age, many jurisdictions maintain up-to-date Geographical Information System (GIS) sections on their websites, offering real-time zoning maps and regulations. When referencing web-based information, ensuring its currency is essential. It's advisable to explicitly state the sources of zoning and planning information in the report, acknowledging any verification efforts.
Assumptions of Zoning Changes
Assuming a change in zoning for valuation purposes requires clear identification throughout the report. Adherence to CUSPAP is crucial, with assumptions needing to be both reasonable and probable. Transparent communication in the report is vital, especially when stating or discussing zoning, ensuring the reader understands the basis for the valuation.
Conforming and Non-Conforming Uses
Distinguishing between legal and conforming uses, legal non-conforming uses, and illegal uses is pivotal. Legal non-conforming uses require special consideration regarding verification and potential continuation, impacting market value. The implications of renovation or alteration on conformity to zoning bylaws must be assessed, and any Development Agreements should be carefully considered for their influence on market value.
Legal and Illegal Uses: Valuation Considerations
Valuation of illegal uses should align with the Highest and Best Use definition, assuming a legally permissible use. Assumptions regarding changes to illegal uses should be explicit, ensuring clarity in the report. In cases of doubt or potential misleading conclusions, a cautious approach, including a clear statement or declination of the assignment, is prudent.
Conclusion: Due Diligence is Key
In the ever-evolving landscape of real estate, due diligence in zoning and land use controls investigations is paramount. The depth of investigation and necessary assumptions may vary, but current information and familiarity with the planning district's characteristics are non-negotiable. Clarity in explaining the appraisal's scope and assumptions is crucial for the reader's understanding, emphasizing transparency and preventing potential misunderstandings.
Understanding the intricate dance between zoning and real estate appraisal ensures a comprehensive and accurate assessment, safeguarding against errors and contributing to a robust valuation process. As the real estate landscape continues to evolve, staying informed and diligent in these considerations remains a cornerstone of successful appraisal practices.
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