Contract Zoning Law and Legal Definition

Contract zoning is a zoning by an agreement in which the landowner agrees to certain restrictions or conditions in exchange for more favorable zoning treatment. This type of contract zoning is generally treated as an illegal restraint of the government's police power. The government, by private agreement, has committed itself to a particular type of zoning. In other words, it is the rezoning of property to a less restrictive classification subject to the landowner's agreement to observe specified limitations on the use and physical development of the property that are not imposed on other property in the zone.