Humber/Ontario Real Estate Course 3 Exam Practice

How should Kwon handle due diligence before moving his auto collision repair business to a new location?

1. Need not be concerned as both locations are zoned M-1.

2. Should not buy the property due to the current non-conforming use.

3. Investigate all zoning matters to ensure the new property can be used for his business.

4. Only investigate whether the current use complies with non-conforming use rules.

The correct answer is: Investigate all zoning matters to ensure the new property can be used for his business.

Kwon should focus on investigating all zoning matters to ensure the new property can be used for his auto collision repair business because proper due diligence is critical in real estate transactions. Zoning regulations dictate how properties can be utilized, and understanding these regulations helps prevent future legal issues and financial losses. By thoroughly examining zoning matters, Kwon can confirm that his intended use aligns with the local zoning laws, which may include restrictions or requirements specific to auto collision repair businesses. This investigation may also reveal potential benefits, such as incentives or support from local government for businesses that fit the community's needs. Furthermore, exploring all zoning issues allows Kwon to assess other pertinent factors, such as the proximity to complementary businesses, accessibility, traffic patterns, and the area's development plans, which are essential for strategic business placement. Ensuring compliance with all zoning regulations significantly increases the likelihood of a successful transition to the new location.