Articles Tagged with grandfathered

A grandfather clause in a real estate context means a clause from a law or regulation was grandfathered in from an old version of that law or regulation. This means even if the law currently would affect someone if they were exempt under the old version of the law those rights have been “grandfathered in.” This is important in real estate because this allows properties, and thus their owners, to be exempt from current zoning laws and regulations. This exemption is meant to protect property owners against impermissible government takings of their property allowing for continued development. This means governments will pursue relocation agreements or other agreements to accommodate property owners as new ordinances are enacted. (Bus. & Prof. Code, § 5412.)

What do grandfather clauses allow for?

Properties may allow properties to maintain their current use or structure even when the law changes. This also protects those property owners from fines or the costs of needing to make the property compliant. Owners need to be able to show the property’s history if rights are at issue. For example, owners must be able to show the property existed or operated prior to the new legislation. To know if grandfathered rights apply, owners and/or their attorneys should look to California Planning and Zoning Law (Government Code Title 7, Division 1, Chapter 4.) If the property raises environment impact concerns, like if a project for construction or expansion is proposed, they will look to the California Environmental Quality Act. (Public Resources Code, Division 13, Section 21000 et seq.)