What Is a Variance in Real Estate
A variance in real estate is an official exception granted to a property owner that allows something different from the local zoning rules. It is typically pursued when the strict application of zoning restrictions would create unnecessary hardship or prevent a reasonable use of the property. Variances are not guarantees; they require approval from a planning or zoning authority and must align with public interest goals. Understanding how variances work helps buyers, sellers, and investors navigate zoning hurdles that can impact land use, development, and property value.
What Is a Real Estate Variance
In real estate, a variance is a formal permission to depart from current zoning requirements, such as setback lines, height limits, lot coverage, or required land use. It does not change the zoning map; rather, it grants a specific exception for a particular parcel. A variance is intended to address unique circumstances of a property, not to redefine general district rules. To qualify, the applicant must demonstrate that the strict application of the zoning ordinance would create an undue hardship, not merely inconvenience.
Key Types Of Variances
There are two primary types commonly encountered in the United States:
- Use Variance: Allows a property to be used for a purpose not permitted by current zoning. This type is less common and often harder to obtain because it can change the character of a neighborhood.
- Area Variance: Relaxes dimensional standards such as setbacks, height, or lot coverage while keeping the general use allowed by zoning. This is the more frequent form of variance requested by landowners.
How Variances Are Granted
Variance approval typically follows a formal process that involves local government, planning boards, or zoning commissions. The applicant presents evidence of hardship, site plans, and how the variance would not adversely affect nearby properties. The board evaluates impact on health, safety, and welfare, neighborhood compatibility, and consistency with comprehensive plans. Public notice and opportunities for neighbor input are common. If granted, a variance is usually tied to the specific property and may include conditions that must be met.
Undue Hardship And Public Interest
A central criterion for granting a variance is demonstrating undue hardship. This means the property cannot reasonably be used under the current zoning rules, considering dimensions, topography, or other site-specific factors. The board weighs the public interest, ensuring the variance does not undermine zoning goals, such as safeguarding property values, maintaining neighborhood character, and ensuring safety. Simple inconvenience or market pressures alone generally do not justify a variance.
Process To Obtain A Variance
While steps can vary by jurisdiction, the typical process includes:
- Pre-application research: Review zoning codes, maps, and any master plans to understand the likelihood of approval.
- Consultation: Meet with zoning staff or a planning consultant to assess feasibility and prepare documentation.
- Application Filing: Submit a formal variance application with a site plan, photographs, and a description of the hardship.
- Public Notice: Notify neighbors and publish notices as required by local ordinances.
- Hearing: Present the case before the zoning board or planning commission; respond to questions and concerns.
- Decision: The board votes to grant, deny, or grant with conditions; timelines vary by jurisdiction.
Documentation And Evidence That Help A Case
To strengthen a variance request, applicants often compile:
- Site plans detailing dimensions, driveways, distances to property lines, and proposed changes.
- Photographs showing current conditions and surrounding uses.
- Parcel data including lot size, zoning district, and setbacks.
- Hardship narrative explaining why the property cannot be used as of right, considering topography, existing structures, or nonconformities.
- Neighborhood impact analysis addressing light, drainage, traffic, and consistency with community plans.
Common Obstacles And Alternatives
Owners may face objections related to character, congestion, or altering property values. If a variance is denied, options include rezoning requests, special use permits, or pursuing a variance on a different aspect of the property. In some cases, variances can be avoided through minor redesigns, lot consolidations, or acquiring adjacent land to meet dimensional requirements. Consulting with a planning professional or real estate attorney can clarify viable paths forward.
Variances Versus Other Zoning Tools
Understanding the distinctions helps buyers and investors plan strategically. The following table highlights key differences:
| Aspect | Variance | Rezoning | Special Use Permit |
|---|---|---|---|
| Purpose | Allows a one-off deviation from zoning rules | Changes the zoning designation for a parcel | Permits a designated use in a zone that otherwise prohibits it |
| Typical Outcome | Parcel-specific approval | Reclassifies the entire area for broader use | Use-specific approval with conditions |
| Process Length | Often months; may be faster in some jurisdictions | Can be lengthy and complex | Varies; can be extended by conditions |
| Impact | Limited to the subject property | Broader changes to surrounding parcels | Enable a use that is legal in the zone with restrictions |
Why Variances Matter For Homebuyers And Investors
For buyers, a variance can open opportunities to acquire unique properties that would otherwise be unusable under current zoning. Investors may find variances essential for adaptive reuse, such as converting garages into living space, expanding footprint within setbacks, or enabling mixed-use development. However, the uncertainty of voting outcomes and potential long timelines mean variances require careful financial and risk assessment. Real estate decisions should factor in the probability of approval, possible conditions, and the likelihood of future enforcement actions.
What Happens If A Variance Is Denied
When a variance is denied, property owners may have several options. They could revise the proposal to address the board’s concerns and refile, pursue a different variance type, apply for a site-specific rezoning, or consider using legal avenues to challenge the decision if applicable. In some cases, the property owner can negotiate with neighbors or the municipality for alternative solutions that protect public interests while enabling the intended use.
Common Pitfalls To Avoid
Several missteps can jeopardize a variance application. Poor documentation, insufficient hardship justification, or plans that imply noncompliance with conditions are frequent reasons for denial. Inadequate public outreach can alienate the community and influence the board’s decision. Working with experienced planners, surveyors, and attorneys increases the chance of a well-supported, timely decision.
Key Takeaways
- A variance permits a specific exception to zoning rules for a property.
- Use variances are harder to obtain than area variances, which relax dimensional standards.
- Undue hardship and public interest are central to approval decisions.
- Documentation and presentation are critical to a successful case.