Abstract
Zoning and other regulations of land use can have a significant adverse impact on the value of property and on the purchaser's business or personal plans for it. Obviously, when evaluating a property, a prospective purchaser should carefully review relevant land use regulations and proposed or planned changes to them. To deal with apparent or undiscovered zoning problems that may disrupt the purchaser's plans for the property, the purchaser can provide for appropriate remedies in the purchase agreement. Such contractual foresight is needed because courts ordinarily will not treat land use controls that restrict the owner's property rights as encumbrances impairing marketability of title, the assumption being that purchasers know of zoning and other land use regulations and accept the burden. This general rule, however, is subject to an exception for property in violation of zoning laws at the time the purchase agreement is executed. But the courts have failed to develop a strong underlying policy rationale for the rule.