What does 'variance' in real estate generally refer to?

In real estate, 'variance' primarily refers to a deviation from the zoning laws or regulations that govern land use and development. When a property owner seeks specific allowances that are not permitted under current zoning ordinances—such as building height, lot size, or land use—they can apply for a variance at the local zoning board. If granted, this provides the property owner with the ability to use their land in a way that would otherwise be in violation of zoning restrictions.

This concept is particularly important for real estate professionals to understand, as variances can significantly impact property value, development potential, and compliance with local laws. The process often involves a public hearing to consider the potential effects of the proposed deviation on surrounding properties and the community. Thus, the correct answer provides an understanding of a critical aspect of land use regulation and property development.