Don’t get blindsided by a historic property designation

Several years back, an Evanston, Illinois couple made a harrowing discovery. After paying $70,000 for 26 windows, the couple, during the permit process, was informed that their home is designated historic and would be prohibited from installing the windows. After an appeal before the city’s Historic Preservation Committee failed, the city council, in a seven to two vote, overturned the denial. This scenario highlights an often overlooked issue – buyers of real estate unaware that their home, commercial property, or even vacant land is designated historic.

For some, a historical designation carries prestige and the ability to help preserve the community’s history (not to mention potential tax breaks). For others, not desiring to deal with any additional restrictions, a historical label can be burdensome and financially difficult. In either case, buyers should be fully informed prior to purchasing.

However, often misunderstood, not all historical designations carry restrictions. For example, properties on the National Register of Historic Places do not automatically carry restrictions, but states and local jurisdictions may, by default, impose restrictions on properties that are on the National Register. Alternatively, local governments may adopt their own preservation ordinance regardless of any federal or state designation.

How to determine if a property has been deemed historic can be a bit tricky. Various agencies can issue a designation, and there is not a single, up-to-the-minute source. However a good start would be contacting the respective state historic preservation agency (if one exists) and the municipality and/or county the property is located. And it is also important to keep in mind that a property not deemed historically significant today might be designated historic in the future, even against the wishes of the property owner.

It’s not only the homes of presidents and famous generals that are being designated historic; Evanston, in the prior example, a college town of 75,000, has more than 2,000 properties designated as historic. So, if you are at all concerned that an older property might be considered historic, do your homework in advance of submitting an offer.

Howard Handler is a real estate matchmaker. He connects real estate buyers and sellers with highly qualified real estate professionals -- all at no cost. A licensed real estate broker since 2004, for 12 years he served as an exclusive lobbyist for the Illinois Association of REALTORS®. If you need the services of a highly qualified real estate agent, please visit www.AgentMatch.realestate for more information.