San Francisco Commercial Real Estate Lawyer on Property Use Risks

San Francisco Planning's Property Information Map (PIM) displays zoning districts, special restrictions, and planning history. Compare the proposed activity with uses permitted or conditionally allowed under the Planning Code. An existing business does not establish that a different operation is authorized. Historic-preservation rules and limits on nonconforming uses can also affect alterations.

For uncertain classifications, request a zoning verification letter or, for an interpretive question, a Zoning Administrator's Letter of Determination. Neither replaces required permits. Existing enforcement issues may warrant a separate zoning violation review.

Compare Department of Building Inspection (DBI) records with the seller's floor plans. An application, an issued permit, and final approval mark different stages. Issuance does not establish that work passed inspection. A completed project may still lack required sign-offs.

Check open complaints, alterations, and final inspection records. If a mezzanine or entrance lacks documented approval, determine whether corrective work or further permits are necessary before occupancy or financing. Ask DBI for the underlying permit file when online entries are incomplete.

Compare Assessor-Recorder documents with the title report for deeds, easements, liens, and restrictions. Check whether rights of others limit access, parking, or construction. A survey may reveal encroachments absent from the listing.

Title insurance covers specified risks subject to exclusions. It does not remove an easement or establish lawful use. Material exceptions may require releases, revised plans, or negotiated terms. Confirm that the deed's legal description matches the land the buyer expects to receive.

The rent roll should match executed leases, amendments, deposits, and tenant estoppel statements. Renewal options, exclusive-use clauses, and promised improvements may limit redevelopment. An estoppel statement should be checked against the actual lease rather than used as a substitute.

San Francisco Administrative Code Chapter 38 applies to qualifying public-accommodation leases of 7,500 square feet or less. For covered new or amended leases, it requires a signed accessibility notice and express allocation of improvement responsibilities. California Civil Code § 1938 separately mandates CASp inspection disclosures for covered leases. Contractual cost allocation does not eliminate applicable federal ADA obligations.

Health Code Article 22A, the Maher Ordinance, addresses potentially contaminated sites. Building or grading work disturbing at least 50 cubic yards of soil in designated areas generally triggers review, subject to exceptions.

Section 22A.15 requires sellers or agents to provide the City's summary and obtain written acknowledgment from buyers of specified parcels. Missing notice does not excuse compliance. A Phase I assessment may support federal CERCLA All Appropriate Inquiries but does not replace local review or establish liability protection alone. Federal protection can require ongoing compliance after acquisition.

Check the approved scope and outstanding conditions with Planning, DBI, and relevant agencies. Conditional use authorizations may bind subsequent owners. New operations may require separate approval. An authorization's conditions can restrict hours, activities, or the scale of an approved use.

For building permit applications filed on or after June 21, 2026, the City generally allows 730 days to obtain issuance, subject to extensions. Issued permits start with a 365-day period, extendable through qualifying inspections or approved extensions. Earlier filings may differ. Buyers should verify the actual application date and the expiration status of each permit before setting a construction schedule.

Document each discrepancy, corrective step, and deadline. Check whether the agreement permits a title objection, inspection termination, seller cure, or extension. Informal assurances may not amend the contract. Confirm the required recipient, delivery method, and notice period before sending an objection.

The commercial real estate purchase agreement sets notice requirements. Missing a deadline may eliminate a contractual option even if the agency has not resolved the concern.

The lender's requirements for occupancy, environmental reports, insurance, and title coverage may affect the closing schedule. Conditional approval does not guarantee funding.

Identify any personal or completion guarantee and its triggers. If permits remain outstanding, examine whether financing and purchase deadlines require extensions. Lender delays do not automatically excuse closing. Verify whether the purchase agreement actually includes a financing contingency.