Buying property for a specific development does not necessarily guarantee that the zoning rules will remain the same forever – or even until the project is complete.
Texas cities have authority to adopt and amend zoning regulations, which means a developer who purchases land may potentially face a zoning change that affects what can be built there.
When development rights may become vested
That does not mean a city can always apply new land-use rules to a project that is already underway. Texas has what are commonly known as vested rights protections. Under Chapter 245 of the Texas Local Government Code, a regulatory agency generally considers a permit application based on the regulations and other requirements that were in effect when the original application for the project was filed.
This can become important when a development requires multiple permits or approvals over several years. Once rights have vested, later changes to certain development regulations may not necessarily apply to the project.
But simply purchasing land usually is not enough to secure those protections. A developer who buys property based on its current zoning but has not yet taken the necessary steps in the approval process may be more vulnerable if the city changes its regulations.
There are also exceptions to vested rights protections. Certain regulations involving matters such as public safety, building codes and other areas identified by Texas law may still apply even after a project has begun.
Due diligence can help identify zoning risks
Because purchasing the property and securing development rights are not the same thing, zoning due diligence can be particularly important before closing on land intended for development.
A buyer may want to investigate the property’s current zoning, permitted uses, development restrictions and any pending zoning changes. Understanding when development rights become protected under Texas law can help property owners determine whether new regulations apply to their project and what options may be available if a city changes the rules.