Through my due diligence I found the park was not properly zoned for MHP. The current owner is grandfathered in so it's not a current issue, but could be a future issue if I bought the park. I engaged a lawyer to help me with the rezoning process. Based on feedback from the city planning and zoning contact, the process should move through smoothly, it would just take a few months to get through application, planning commission approval, then city council approval.
Once we gave notice to the current owner he backed out of the deal. I think he was worried if we went through the process, and didn't get approved, he could be left holding a non-properly zoned MHP. He likely doesn't know he's currently grandfathered in. I think seller was also concerned any improvements the city required for re-zoning approval would get pushed back on him.
Is zoning common with long held MHP's that transfer ownership? My attorney told me financing could be an issue if bank found out property is not properly zoned so I feel I had to push for re-zoning even though in this case it killed the deal.
Any tips for how to structure this deal with seller? It's still a great buy and I'd like to find a way to comfort the seller.,