Posted on: 2 June 2019
People with large parcels of land often opt to divide them, as they will give higher returns when sold as small parcels. Developers may also choose to subdivide the property to put up residential or commercial units. In the excerpt below, you will learn the various considerations you need to make when subdividing land.
Land division is a costly process. Consequently, you should visit your local council offices and inquire how much it will cost to subdivide your land. For example, you need to pay a fee to the local council and various utility companies. You also need a surveyor to survey the subdivision and submit the subdivision plan to the lands office. On-site, you may require a contractor to put up roads and ensure each of the individual plots have access to water and electricity.
What is the current value of land in your locality? You will need to conduct a cost-benefit analysis to determine if the subdivision is viable. You also need to assess the current demand for land in the area. If you intend to develop the parcel, contact your contractor and ask him or her to give you an estimate of how much it costs to put up the proposed development.
Zoning regulations, owners association bylaws and resident association laws can significantly affect the proposed subdivision. You may need to hire a conveyancer to evaluate the following:
- What kind of developments are restricted in the area?
- What amenities should the plots and developments have? You may have to allocate parking space or a front porch depending on the resident's association bylaws.
- What is the required plot size?
- If you intend to develop the property, inquire about noise pollution, as some neighbourhoods restrict certain construction activities at night, on weekends and during holidays.
Preparing for sale
Land division is a lengthy process. Preferably, hire a surveyor that will follow the process up to the end. As you await the titles, talk to your real estate agent about the best ways to advertise the parcels. For developments, consult with your bank and inquire about financing, interest rates and the various types of loans. You could also engage a land development consultant and ask him or her to link you up with potential developers.
If you intend to conduct a land division, inquire about the costs, conduct some market research on the viability of the project, determine zoning regulations and consult experts on how to sell or develop the land.Share