A zoning variance allowing a reduced side setback is granted for a parcel. After the parcel is sold, who generally holds the benefit of the variance, subject to its conditions?
Correct Answer
B) The new owner, since the variance runs with the land
A variance generally runs with the land: it benefits the parcel and passes to later owners, subject to its stated conditions and any expiration under local law. It is not personal to the applicant, does not lapse on sale, and does not belong to the lender. Verify the actual approval terms in an assignment.
Why This Is the Correct Answer
Option B is correct because a variance generally benefits the parcel itself and passes to the new owner when title transfers. Its stated conditions and any local expiration provisions continue to apply. In an appraisal, the actual approval terms should be verified.
Why the Other Options Are Wrong
Option A: The original applicant, as a personal approval
Option A treats the variance as a personal approval held by the original applicant. A variance generally attaches to the land rather than to the person who applied, so it does not stay with the seller.
Option C: No one, since a variance lapses when title transfers
Option C says a variance lapses when title transfers. A sale does not by itself end a variance; it generally continues for later owners subject to its conditions.
Option D: The mortgage lender holding the security interest
Option D gives the benefit to the mortgage lender holding the security interest. A lender holds a lien, not the land-use rights of ownership, so the variance benefit does not belong to the lender.
Variance Rides With the Land
Picture the variance attached to the lot, so it moves to whoever owns the lot next.
How to use: Use this image to reject answers that make a variance personal or end it at sale.
Exam Tip
Variances generally run with the land; pick the answer that gives the benefit to the new owner subject to conditions.
Common Mistakes to Avoid
- -Treating a variance as a personal permit
- -Assuming a variance ends when the property sells
- -Confusing a lender's lien with ownership rights
Concept Deep Dive
Analysis
This question tests whether a zoning variance is personal to the applicant or attached to the parcel. A variance generally runs with the land, so its benefit passes to later owners subject to its conditions and any expiration under local law. The distractors treat it as personal, as lapsing on sale, or as belonging to the lender.
Background Knowledge
A variance is permission from a zoning authority to depart from a specific requirement, such as a setback, usually because of a hardship tied to the parcel. Because it relates to the land, it generally transfers with ownership. Conditions, expiration rules and the scope of the approval vary by jurisdiction and should be confirmed.
Real-World Application
An appraiser values a home built closer to the side lot line than current zoning allows. Records show a variance was granted to a prior owner, so the appraiser reviews its terms and reports the improvement as legally permitted under that variance.
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