In one sentence
A report confirming how the property is zoned, whether the current use and improvements comply, and what happens if they are damaged or rebuilt.
The longer version
Zoning reports, often called PZRs after the largest provider, compile the zoning designation, permitted uses, parking and setback requirements, variances, and open violations. The key finding is conforming, legal nonconforming, or nonconforming.
Legal nonconforming status raises the rebuild question: if the building burns, can it be rebuilt as-is? Lenders resolve that through the report, zoning letters from the municipality, and zoning endorsements to the title policy.
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