When is grandfather clause applicable?

The ­grandfather clause is most applicable to which one of the following:

  • The transfer of conditions, covenants, and restrictions,
  • The use of a quitclaim deed
  • In a blanket deed of trust
  • Legal non-conforming use in appraising zoning compliance

The answer is D. When appraising a home, the appraiser looks to see if any improvements made to the home conform to the current zoning of the site. If they don’t then there’s a problem because non-conforming properties can not be reconstructed if destroyed.

But, older properties may be “grandfathered in” regarding their zoning. The city or county may provide what is called a “burn-down” letter, indicating that the property, in its current state, could be rebuilt if it were, for any reason, destroyed.