Municipal Codes and Zoning: What Every Pennsylvania REALTOR® Should Know
Few things derail a real estate transaction faster than discovering that a property’s current use—or a buyer’s intended use—does not comply with municipal ordinances. While title, inspections, and financing receive much of the attention during a transaction, municipal codes and zoning requirements are just as important. Understanding the basics can help REALTORS® identify potential issues early and better prepare their clients for a smooth closing.
Although the terms are often used interchangeably, zoning and municipal codes serve different purposes. Zoning ordinances regulate how property may be used. They determine whether land is residential, commercial, industrial, agricultural, or another classification, and often govern setbacks, building height, parking, lot coverage, and permitted uses. Property maintenance and municipal codes, on the other hand, focus on the condition and safety of structures and may require use and occupancy inspections or municipal certifications before a property can be transferred.
One of the most common misconceptions is that a property’s current use automatically makes that use legal. A building may have been used as a duplex, home office, or small business for years, yet still not comply with current zoning. Sometimes the use is legally ‘grandfathered’ as a lawful nonconforming use. Other times, it was never properly approved in the first place. Buyers should never assume an existing use can simply continue without confirming it with the municipality.
The same principle applies to future plans. A buyer may intend to convert a single-family home into a duplex, operate a business from the residence, build a detached garage, install a fence, add an accessory dwelling unit, or even use the property as a short-term rental. Each of those uses may be permitted, prohibited, or require municipal approval depending on the local ordinance. Because every Pennsylvania municipality adopts and enforces its own zoning regulations, the rules can vary dramatically from one community to the next.
Municipal inspections can also surprise buyers and sellers. Depending on the municipality, a use and occupancy inspection may identify code violations that must be corrected before settlement or within a specified period after closing. Learning those requirements a week before settlement often creates unnecessary stress and delay.
What is the REALTOR®’s role? REALTORS® are not expected to interpret zoning ordinances or provide legal advice. Their value lies in recognizing when questions should be asked. Encouraging clients to contact the municipality, review applicable ordinances, and consult an attorney or other appropriate professional when necessary can prevent costly misunderstandings.
In my experience, many of the most frustrating closing delays are entirely avoidable. A quick phone call to the local zoning or codes office early in the transaction can answer questions that become far more complicated—and far more expensive—if discovered days before closing. A little due diligence at the beginning of a transaction often saves everyone significant time, money, and stress at the end.
