Dividing your property can be an effective way to maximize its potential, generate income, or prepare for family inheritances. But property division isn’t as simple as drawing a line on a map and selling off a portion. It requires several legal, financial, and logistical considerations. Here are the key factors you need to know before moving forward with a property division.
10 Considerations for a Smooth Property Division
1. Understand Local Zoning Laws and Regulations
Before diving into a property division, you first need to familiarize yourself with local zoning laws. These laws dictate how land can be used and divided within a municipality or county. Some zoning ordinances may restrict or even prohibit the division of properties, especially in residential, agricultural, or industrial areas. Before making any plans to divide your property, visit your city or county planning office to learn about local zoning restrictions. You may also want to consider consulting with a land use development consultant such as Richard Stevens & Associates for help navigating these restrictions.
2. Check Land Division Requirements
In many areas, dividing property is legally termed as “partitioned” or “subdivision” and you must comply with specific land division regulations. You might need to submit a formal subdivision application to your local government, which typically involves detailed documentation, including:
- A surveyor’s tentative plat map (surveyed layout of the land)
- Proposed lot boundaries
- Access routes
- Utility plans
Subdivision requirements can vary significantly by location, so consulting a real estate attorney or land surveyor can be beneficial.
3. Surveying the Property
An official land survey is key to property division. A licensed land surveyor will assess your property, providing precise measurements to accurately define clear, legal boundaries of the property. This certified surveyor’s map becomes part of the legal documentation required for dividing your property. It also helps you avoid potential property line disputes with neighbors or buyers in the future.
4. Access and Easement Issues
A common issue in property division is ensuring safe and legal road access to the newly created parcel. Most municipalities require all subdivided lots to have clear access, typically through a frontage road or an access easement. An access easement grants you the right to pass through another person’s land in order to reach your property. Securing this easement can be a challenge, especially if the surrounding property owners need to be involved, so it’s a good idea to address this early on in the process.
5. Infrastructure and Utilities
Once your property has been divided, each lot must have access to utilities and infrastructure, including electricity, water, sewage, and possibly gas. Depending on your location, this may involve connecting to public utilities or installing new utility lines, which may incur a substantial cost. In rural areas where municipal sewage isn’t available, septic systems and water wells are required, each coming with their own unique permitting requirements.
6. Impact on Property Taxes
Dividing your property can lead to a change in your property taxes. Typically, each new parcel will be taxed individually, which could lead to an increase or decrease in your overall property taxes, depending on factors like property size, location, and usage. Before proceeding with a property division, consult with your local tax assessor’s office to fully understand the potential financial implications of your decision.
7. Market Value and Sale Potential
If your goal is to sell part of your land, consider the impact of dividing your property on market value. A well-thought-out division plan can boost value, particularly if the parcel offers unique features or potential for future development. Research the market or consult a real estate agent to understand the demand in your area, so you can set a realistic price for any subdivided parcels.
8. Legal Compliance and Required Permits
Many local governments require various permits to legally divide your property. Expect to provide:
- Planning commission approval: Required in many municipalities, this approval confirms compliance with local planning objectives.
- Environmental impact assessments: In some areas, dividing property might require an environmental review to assess potential impacts on local wildlife, vegetation, and water resources.
- Title and deed adjustments: After the property division, you’ll need updated property deeds to reflect the new lot lines, which should be filed with your local county recorder’s office.
9. Financing and Lender Requirements
If you currently have a mortgage on your property, consult your lender before moving forward with dividing your property. Many mortgage agreements have clauses restricting the division of the land, which could require paying off the loan or refinancing. Some lenders may agree to modify the loan for a fee, but it’s essential to review your loan agreement carefully and communicate with your lender early in the process.
10. Future Use Restrictions and HOA Rules
If you live in a community with a homeowners association (HOA), you may be subject to additional rules regarding property division. Some HOAs prohibit subdivisions entirely or impose specific guidelines, such as design and construction requirements for any new buildings. Review your HOA’s covenants, conditions, and restrictions (CC&Rs) and consult the board before making any decisions.
Before Dividing Your Property, Consult with the Professionals at Richard Stevens & Associates
From building a family home to creating investment options, dividing your property can provide a host of opportunities. However, before you begin, you need to thoroughly understand the zoning laws, financial implications, and legal requirements of your decision. As your local land use experts, the team at Richard Stevens & Associates has the experience you need when it comes to the logistics of property division. Contact us today, and we’ll make sure you’re well prepared to successfully divide your property.
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