Correct Zoning (In a Lease)

A correct zoning provision is a part of a lease that specifies that the city's zoning allows for the tenant's use of the property. This clause is most commonly used in commercial leases; however, it can also be used in residential leases. In some cities, certain types of businesses are only allowed to operate in certain areas. If a tenant were renting out a property for the purpose of conducting a certain type of business, he or she would want some assurance that the business activities are allowed in that part of town. These provisions are usually included in the contract as a representation or warranty. If it is later found that the city's zoning does not allow for the tenant's use of the property for his or her desired purposes, the tenant will mostly likely have the ability to escape the agreement and sue for any applicable damages.