By-Right vs. Discretionary Approvals
By-right projects go straight to permitting. Discretionary projects face hearings, boards and uncertainty. Why the difference changes a development site's value and how you structure the contract.
What "by-right" means
A by-right project can be built under current zoning without special approvals. If the plan meets the code, it can go straight into permitting.
There's still work to do. Plans get reviewed, permits get issued, and the project has to meet the code. But nobody is voting on whether it gets built.
What "discretionary" means
A discretionary project needs someone's approval beyond the code. That usually means a variance, a rezoning or a special exception.
With that come hearings, boards and a public process. Neighbors can weigh in. Staff can recommend changes. A board can approve, approve with conditions or deny. That process can take months, sometimes longer, and the outcome isn't guaranteed.
At a glance:
By-right | Discretionary | |
Approval needed | Meets current zoning | Variance, rezoning or special exception |
Process | Straight to permitting | Hearings, boards, public input |
Timeline | More predictable | Months, sometimes longer |
Risk | Lower | Real chance of conditions or denial |
Why it changes the value of a site
Time and uncertainty both cost money. A buyer facing a discretionary process carries the land longer, pays for consultants and attorneys, and takes the risk that the project changes or doesn't happen.
That's why two sites with the same size and the same zoning can be worth very different amounts. The one that can be built by-right is usually worth more, because the buyer knows what they're getting.
Why it changes the contract
If your plan depends on an approval, your contract should reflect that. Buyers often negotiate a longer due diligence period, a closing tied to receiving approvals, or price terms that depend on what gets approved.
Sellers should understand this too. A buyer who needs a rezoning will ask for time and protection. Knowing that up front helps both sides set realistic terms.
Start on day one
Entitlement strategy isn't something to figure out after you're under contract. Before you make an offer, know whether your plan is by-right and, if not, what approvals it needs and how long they'll take.
Buying a development site and want help evaluating entitlement risk? Let's set up a call.
Devtrac Properties · 6310 NW 2nd Ave, Miami · 305-998-5505 · hello@devtrac.properties
