Ordinance
A law or regulation enacted by a local government authority, such as a city or county, that governs land use, building standards, zoning requirements, or other property-related matters within their jurisdiction. Ordinances typically address issues like setback requirements, building heights, permitted uses, and safety standards.
Example
“The city ordinance prohibited short-term rentals in residential neighborhoods, forcing the investor to change his business model.”
Memory Tip
Think 'ordinary' rules for 'orderly' communities - ordinances keep local areas orderly.
Why It Matters
Property owners must comply with local ordinances to avoid fines, legal issues, or forced modifications to their property. Understanding applicable ordinances is essential before making improvements or changes to property use.
Common Misconception
Ordinances are not suggestions or guidelines - they are legally binding laws that carry penalties for non-compliance.
In Practice
A homeowner planning to build a deck must check local ordinances to ensure compliance with setback requirements, height restrictions, and permit requirements, or risk having to tear down non-compliant construction.
Etymology
From Latin 'ordinare' meaning 'to put in order,' as local governments use ordinances to put their communities in order through rules and regulations.
Common Misspellings
Compare the best financial products for you
More in legal
Other legal terms you should know
Need financial definitions?
Clear definitions for 2,500+ finance, insurance, and investing terms.