Real Estate Financing and Settlement Complete Practice Exam 2026

A conditional use permit is a specific zoning mechanism that allows for a property to be utilized in a manner that differs from the established zoning regulations, but only under certain specified conditions. This permit is essential in providing flexibility within the zoning laws, as it permits uses that are not automatically allowed in a particular zoning classification but may be acceptable depending on certain criteria.

For example, in a residential zone, a conditional use permit may allow for the establishment of a small daycare or a church, which are uses that might not be typical for that zoning district. However, to receive the permit, the owner must demonstrate that the proposed use can be integrated without negatively impacting the surrounding area or violating the intent of the zoning ordinance.

This differs from an unrestricted permit, which would allow any type of usage, and is not limited to construction, as conditional use permits can apply to a variety of situations. It is a strategic planning tool used by zoning boards to balance development needs with community standards.