Variance vs. Nonconforming Use in Real Estate: Key Differences Explained

Last Updated Apr 25, 2025

Variance in real estate law allows property owners to use their land in a way that deviates from zoning regulations due to unique circumstances, providing relief from strict compliance. Nonconforming use refers to a property's existing use that legally predates current zoning laws but does not comply with new restrictions, often maintained until the use is discontinued or the property changes hands. Understanding the difference is crucial for property owners seeking flexibility while ensuring compliance with local zoning ordinances.

Table of Comparison

Aspect Variance Nonconforming Use
Definition Official permission to deviate from zoning rules. Existing use not complying with current zoning but legally established.
Purpose To allow flexibility for unique property hardships. To protect pre-existing uses after zoning changes.
Approval Process Requires application and hearing before zoning board. No new approval; use is grandfathered.
Duration Typically permanent unless conditions change. May be limited; often terminated if use ceases.
Examples Building closer to property line than allowed. Operating a business in a now residential zone.
Impact on Property Value Can increase value by enabling desired use. May limit value due to zoning restrictions.

Variance vs Nonconforming Use: Key Definitions

A variance is a formal exception granted by a local zoning authority allowing property owners to deviate from specific zoning regulations, typically due to unique hardships or characteristics of the property. Nonconforming use refers to a property or structure legally established according to previous zoning laws but now conflicts with current zoning ordinances, continuing to operate under "grandfathered" rights. Understanding the distinction is crucial for real estate development, as variances require approval and justification, while nonconforming uses are typically allowed to continue without new permits but may face restrictions on expansion or alteration.

Understanding Zoning Laws in Real Estate

Variance permits property use that deviates from zoning restrictions due to unique hardships, allowing flexibility without altering the overall zoning ordinance. Nonconforming use describes a property use lawfully established under previous zoning rules but now inconsistent with current regulations, typically grandfathered to continue. Understanding these distinctions is essential for real estate investors navigating zoning compliance and property development opportunities.

The Legal Foundation of Variances

Variances are legally grounded in zoning laws that allow property owners to deviate from specific zoning requirements when strict enforcement causes undue hardship, ensuring the variance does not harm public welfare or neighboring properties. Nonconforming use refers to properties lawfully established under prior zoning regulations but that do not meet current zoning standards, continuing legally until redevelopment or abandonment. Courts generally require variances to demonstrate unique physical characteristics of the property, differentiating them from nonconforming uses, which are pre-existing conditions protected by grandfathering provisions.

How Nonconforming Uses Arise in Property

Nonconforming uses arise when a property's current use legally predates new zoning regulations, allowing it to continue despite conflicting with updated zoning laws. This status typically results from changes in zoning ordinances that restrict certain activities not previously regulated or prohibited. Understanding the origin of nonconforming uses is essential for real estate investors evaluating property value and redevelopment potential within evolving regulatory frameworks.

Application Process for Obtaining a Variance

Obtaining a variance requires submitting a detailed application to the local zoning board, including proof of unnecessary hardship or practical difficulties due to the property's unique characteristics. Applicants must provide site plans, photographs, and any relevant legal documentation to support their case for relief from zoning restrictions. Public hearings are held to review the application, allowing neighbors and officials to comment before a final decision is rendered.

Rights and Limitations of Nonconforming Uses

Nonconforming use rights allow property owners to continue using land or buildings in a manner that does not comply with current zoning regulations, typically grandfathered under prior rules. Limitations include restrictions on expansion, alteration, or rebuilding after significant damage, often requiring the use to cease if abandoned for a specified period. Courts generally emphasize that nonconforming uses are exceptions subject to strict interpretation, ensuring no expansion beyond the originally permitted scope to protect zoning objectives.

Case Studies: Variance and Nonconforming Use in Action

Case studies reveal how variances provide property owners legal relief by allowing deviations from zoning ordinances, such as building height or setback requirements, when strict compliance causes undue hardship. In contrast, nonconforming use cases demonstrate scenarios where existing lawful uses continue despite new zoning restrictions, often preserving commercial activities in residential zones. These examples highlight the critical legal distinctions and practical implications for developers and municipalities navigating zoning challenges.

Impact on Property Value and Marketability

Variance in real estate allows property owners to legally deviate from zoning regulations, often enhancing property value and marketability by enabling more flexible use or development options. Nonconforming use exists when a property does not comply with current zoning but was lawful when established, which can limit its value and appeal due to restrictions on expansion or modification. Investors typically prefer properties with granted variances because these permit adaptability, whereas nonconforming uses may pose challenges affecting resale potential and financing opportunities.

Compliance Challenges for Real Estate Investors

Real estate investors face significant compliance challenges navigating variance permissions versus nonconforming use rights, as variances require formal approval processes often involving zoning boards, while nonconforming uses allow continued operation of existing uses that conflict with current zoning but were lawful when established. Understanding local zoning ordinances and restrictions is critical to avoid costly legal disputes or forced property modifications. Proper due diligence on zoning compliance reduces risks related to property value depreciation and investment stability.

Future Trends in Zoning: Variances and Nonconforming Uses

Future trends in zoning indicate an increasing emphasis on balancing variances and nonconforming uses to accommodate evolving urban landscapes. Municipalities are integrating adaptive regulatory frameworks that streamline variance approvals while encouraging redevelopment of nonconforming properties to meet current zoning standards. This approach fosters sustainable growth by allowing flexibility in land use without compromising community planning objectives.

variance vs nonconforming use Infographic

Variance vs. Nonconforming Use in Real Estate: Key Differences Explained


About the author.

Disclaimer.
The information provided in this document is for general informational purposes only and is not guaranteed to be complete. While we strive to ensure the accuracy of the content, we cannot guarantee that the details mentioned are up-to-date or applicable to all scenarios. Topics about variance vs nonconforming use are subject to change from time to time.

Comments

No comment yet