Under what condition must a zoning change be disclosed in a property sale?

Disclosing a zoning change is crucial when it has a material bearing on the sale or lease of a property because zoning changes can significantly affect how the property can be used, its value, and its desirability. If a zoning change alters permissible uses, such as changing residential property to commercial use or introducing restrictions that could impact development, this information becomes essential for potential buyers or lessees to make informed decisions.

When a zoning change impacts the ability to utilize a property as intended, it is classified as a material fact. Buyers depend on full disclosure of such factors to assess risks and calculate future investment value. In many jurisdictions, failing to disclose significant changes can lead to legal repercussions for sellers or agents since non-disclosure of material facts can be seen as misrepresentation.

In contrast, other conditions such as local government nonconformance, property owner requests, or court-ordered disclosures do not universally mandate disclosure. For instance, a zoning change that merely reflects compliance without affecting property use does not need to be disclosed. Therefore, the obligation to disclose hinges specifically on the material impact a zoning change has on the property involved in the transaction.