New York City Zoning Company, PZR Announces Zoning Endorsements for Commercial Lenders

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The Planning and Zoning Resource Corporation announces zoning endorsements for commercial lenders in New York City as the need for completing a risk analysis of the projects prior to funding commitments have become essential.

The Planning and Zoning Resource Corporation (PZR) has recognizes that commercial real estate lenders in New York City are doing a complete risk analysis of projects prior to funding commitments. Because of that, PZR is offering commercial lenders zoning endorsements. The real estate market collapse of the past few years has taught them the dangers of “lending blind,” which is funding a loan without completing due diligence research and conducting risk analysis from a legal firm, zoning consultant, borrower authority, or local municipality.

One component of funding includes title insurance. Lenders require the borrower to purchase title insurance for the commercial real estate property. Title insurance protects lenders and borrowers against events that may have occurred in the past with the property or previous owners. Title insurance protects against claims from defects such as encroachments, liens, encumbrances, easements, fraud and more.

PZR references Zoning Endorsement 3.0 which is used primarily for vacant land before construction commences and informs the insured of the zoning classification applicable to the land and the uses permitted by that zoning classification plus insures against loss or damage that may be sustained by reason of inaccuracy in the information supplied or by reason of a final judicial determination invalidating the zoning ordinance. It may be issued with a loan policy only.

Zoning Endorsement 3.1, used primarily for improved property, insures against loss or damage that may be sustained by reason of a final judgment requiring the removal or alteration of existing structures on the land by reason of their violations of the zoning restrictions imposed on the use of the land relating to the site, floor area, set-back lines, and height of the building.

By adding zoning endorsements along with other endorsements to the tile policy, lenders are following safe and sound lending policies which protect them and their clients.

The Planning and Zoning Resource Company is the nation’s largest provider of zoning due diligence and analysis while being the sole provider and creator of the PZR Report. PZR provides its clients with zoning report formats that are supported by municipal documentations that produces reliable, independently confirmed statements that speaks to the compliance of property’s existing use, setbacks, height, density and parking. Their research includes specific zoning designation of the site as established by the current municipal code, uses allowed under the zoning designation established by the zoning ordinance, minimum setback requirements, building height and story requirements for compliance, minimum parking requirements and special circumstances that are in need on consideration. Additionally, PZR specializes in document acquisition for zoning and building code documents in all 50 states.

For additional information about the Planning and Zoning Resource Company please contact David Anderson at 1.800.344.2944 or

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David Anderson
The Planning & Zoning Resource Corp. - PZR
since: 03/2013
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