Q: If a property, with one APN, has 5 separate single-family homes on it, is that considered 'commercial' property?
Each of the single-family homes are rentals and have their own address. All are within the same APN number with the county for property tax purposes. Is this considered a 'commercial' property, because of 5 units, in terms of bank financing and insurance purposes? Or is this considered a residential property because each building is detached and separate even though they are all on the same APN?
A:
The classification of a property as commercial or residential can depend on a variety of factors, including the zoning of the property, the intended use of the property, and the number of units on the property. In the case you described, where a single property has multiple single-family homes on it, the classification of the property may depend on the specific laws and regulations in your jurisdiction.
In general, a property with multiple units may be considered commercial if it is zoned for commercial use or if it is used primarily for business purposes, such as a rental property or apartment complex. However, if each unit is a separate single-family home and is used primarily for residential purposes, the property may be considered residential even if it has multiple units.
In terms of bank financing and insurance purposes, the classification of the property may also depend on the specific policies and guidelines of the bank or insurance company. It's important to consult with your lender or insurance provider to understand how they classify properties with multiple units and what impact this may have on your financing or insurance options.
Overall, the classification of a property as commercial or residential can be complex and may depend on a variety of factors. It's important to consult with a real estate attorney or other qualified professional to understand how the laws and regulations in your jurisdiction apply to your specific situation.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
