Important factors to consider when you want to sub-divide your land
Land sub-division comes with many benefits. Many landowners are considering such options under the current marketing conditions. If you have a large area of land, sub-division may be the right thing for you. Here are a few things you need to consider when you want to sub-divide your land.
Limitations
Before you can begin the sub-division process there are some things to keep in mind such as limitations. Neighborhood covenants, deed restrictions, and ordinances may keep you from sub-dividing your land. You can get a professional title review from a real estate agent to see if any of these reasons or more apply. It may also be smart to purchase title insurance to protect you and your buyer or buyers.
Profitability
Depending on how much land you have, dividing a large area of land into smaller pieces could increase your profits. Lots can be sold to multiple buyers or even rented out to increase revenue. Dividing land can increase the value of it rather than leaving it as a whole. Finding a buyer is sometimes made easier by having smaller pieces of land. However, you should always make sure the sizes work both legally and for the market.
Legal process
First, a surveyor will come and check out the land. They will make a detailed layout of how it will be sub-divided. Next, the application will be given to local authorities and then posted for the town to lodge their interest in it or objections. This step is followed by a technical assessment. Someone will come by and inspect the land for any faults or damage such as it being a flood zone or the groundbreaking away in a spot. They will look at the sewage, water, and electricity options on the land. They will also make building recommendations which may require you to change some things. Finally, a council will make their final decision on whether or not they will accept or decline the application. If approved, you can begin to sell or rent lots to potential buyers.
Consultation
All of this process comes with risks which could end up being more costly than profitable depending on how you go about things. If you are not familiar with the whole process, consult an expert to help. Consult your attorney, real estate agent, and a contractor during every step. It could end up being beneficial for you even if you do have some experience with sub-dividing land.