So Your Clients Want to Subdivide Their Land

Your seller clients tell you they are considering subdividing their land. This scenario includes some challenges that they may not yet know.?

Megan Turnipseed , Broker Associate with Keller Williams Lone Star, is the 2024 President of the REALTORS? Land Institute Texas Chapter. Here are five questions she asks when dealing with this scenario.?

?Is the property in or near city limits? If it is, clients may need to check with the local zoning authority to learn how to proceed. If it isn’t, your clients may have fewer constraints but still will want to see if there are restrictions by any local jurisdictions.?

Are there any deed restrictions?? Sellers should confirm there’s nothing preventing them from selling or altering the property.?

How large are the subdivisions? The larger the tracts, the easier the process may be. Splitting a 100-acre ranch into 10-acre tracts is often not complex. Creating a small, high-density subdivision is much more complicated. In either case, the sellers will need to get county authorities involved since the county may be responsible for property access and roadways.?

What's the goal? Do the sellers want a quick sale? Then they may want to divide the land into market-friendly pieces. If they want to develop the land, though, they may want to work with a developer to see income over time. It could take two to three years to get all of the entitlements secured.?

Am I qualified to help? Subdividing land is different than selling a home or even selling land. Make sure you know what you’re doing. Consider taking specialized courses such as RLI’s Subdivision Land Development course. Earning your Accredited Land Consultant designation helps, too.?

As with any transaction, your clients should consult a private attorney should they have any questions regarding local ordinances, deed restrictions, or any other legal aspect of the subdivision process.