WHAT IS SUBDIVISION OF PROPERTY?

 Subdivision is the act of dividing land into pieces that are easier to sell or otherwise develop, usually via a plat. The former single piece as a whole is then known in the United States as a subdivision. Subdivisions may be simple, involving only a single seller and buyer, or complex, involving large tracts of land divided into many smaller parcels. If it is used for housing it is typically known as a housing subdivision or housing development, although some developers tend to call these areas communities.

Subdivisions may also be for the purpose of commercial or industrial development, and the results vary from retail shopping malls with independently owned out parcels to industriaL parks. The subdivision of land, where one property is divided into two or more portions, is often something that owners consider in order to benefit financially from selling off these divided portions, or perhaps building additional houses on each portion and selling these off at a profit. There are also many other reasons to subdivide a property that may come into play, such as dividing a property and selling a portion to a developer for town planning purposes.

 A subdivision does not need to be sold, in whole or in part, for its resulting pieces to be considered separate parcels of land. A subdivision plan approved by a local planning commission, once recorded in a registry of deeds, is generally deemed to have created the parcels of land identified on the plat itself. The overall purpose of a subdivision is to create an environment conducive to overall development and sustained growth, with development defined as,  the design work of lot layout, the construction of drainage structures, the construction of buildings or public use areas, the planning and construction of public streets and public roads, and the placement of public utilities.

 Subdivisions are areas of land that have been subdivided into individual residential plots. Whereas some subdivisions comprise exclusive gated communities, others are merely demarcations denoting a specific neighbourhood. Some subdivisions may conduct autonomous security, or provide basic services such as water and refuse management. Most subdivisions are governed by associations made up of members who are residents of the subdivision. In the Philippines, subdivisions are also known as villages. Successfully subdividing your land into residential lots can have many benefits, including providing a landowner both increased profits and flexibility. If you are buying or already have a large parcel of land for sale, or even a home lot that has “extra” land area, you may wish to consider whether subdividing your land can help you maximize your real estate resources, something that many landowners are evaluating in the current market conditions.

Successfully subdividing your land into residential lots can have many benefits, including providing a landowner both increased profits and flexibility. If you are buying or already have a large parcel of land for sale, or even a home lot that has “extra” land area, you may wish to consider whether subdividing your land can help you maximize your real estate resources, something that many landowners are evaluating in the current market conditions.

Depending on the situation and the local market conditions, you often can increase the total value of a parcel of land by subdividing it into smaller pieces –lots – that are then sold to one or more buyers. In essence, through subdivision the parts can be more valuable than the whole.

Another benefit of subdividing for homeowners who would like to liquidate some of their real estate without having to sell the farm (literally), is that they may be able to both cash in on a portion of vacant land and stay put on the rest. Holding onto some of their land can give that property time to increase in value as the surrounding subdivided land becomes developed.

Subdivision concepts are common knowledge and practice among experienced professionals like home builders, land developers and real estate agents. In fact, subdividing land really is a fundamental part of all real estate development, but it is only one part of the overall development process.

Article Written by

Priscillah Munangatire

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