Selling vacant land with variance? - Posted by IB (NJ)

Real Estate Investing
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Posted by Nate(DC) on May 08, 2003 at 21:38:38:

That would be a question for the local zoning people; it will really depend on how flexible they are.

NT

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Selling vacant land with variance? - Posted by IB (NJ)

Posted by IB (NJ) on May 08, 2003 at 17:18:34:

I have a vacant lot that I had to get a variance for in order to build a new 2 fam. The lot size is 25x89 and the minimum size the city allows you to build on without requiring a variance is 25x100. We have the hearing this coming Thursday as the variance is expected to be issued without a hitch. Can I sell the land to a builder with the variance attached? Since he/she can still build a 2 fam on it, is the builder likely to pay the same amount that he would if the lot was 25x100?

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Re: Selling vacant land with variance? - Posted by David Krulac

Posted by David Krulac on May 08, 2003 at 17:29:36:

  1. yes, unless specified otherwise the variance is transferable with the property.

  2. almost as much, the builder may want some discount for the reduced size.

What are the setbacks?
What is the maximum building coverage?
What is the maximum impervious coverage limit?
What is the off stree parking requirement?

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Related question… - Posted by Ben (NJ)

Posted by Ben (NJ) on May 09, 2003 at 11:21:33:

I’m selling a house to a builder who intends to tear it down and re-build a SFH. He states he wants seller (me) to apply for the variance to build a sfh. If there is already a sfh on the lot, why would he need a variance, and why would I have to get it?

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Re: Selling vacant land with variance? - Posted by IB (NJ)

Posted by IB (NJ) on May 08, 2003 at 17:39:25:

Thanks David for the quick answer. I do not know the answers to your questions as my Brother (and partner) has been dealing with this property.

Another question: we have to include architectural plans to the variance board. But the plans are for a specific model (design). Can a builder buy the land with the variance and use a different model providing that he doesn’t exceed the limits set forth in the variance? Thanks again.

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Re: Related question… - Posted by IB (NJ)

Posted by IB (NJ) on May 09, 2003 at 14:46:06:

Ben, in being the buyer for this particular lot, it was my responsibility to get the variance. The whole procedure, architectural plans, survey, etc., runs about $3-4k in our market.

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Re: Related question… - Posted by David Krulac

Posted by David Krulac on May 09, 2003 at 13:22:27:

even with the continued use of SFH, the builder may still need a variance for:

set backs,
impervious surface,
building coverage,
off street parking etc.

If it were me I would have the builder go for the variance and make it a contingency of the sales contract. Let the builder spend the money for survey, engineering, legal and any other costs assoicated with the variance. IMHO