The process of entitling lots may take more or less than 5 years and at the same time, it can cost you significant sum of money. The cost for the parcel maps for 5 lots or even less will already run you at around 100000 dollars. On the other hand, tract maps for greater than 5 maps is going to cost you half a million. The potential size and the number of lots are determined by health department regulations, zoning and general plan as well as biology. Included in this cost are the processing, regulatory fees, engineering and several other studies and reports.
In the studies and reports, it includes storm water treatment, approval cost, archeology and anthropology, soils, biology, traffic and noise. When the map is approved and then recorded, there are several fees that have to be settled including but not limited to potential greenhouse gas studies, on and off site mitigation land, school fees, recreation and park fees, physical secondary access, annual bonding fees, fire fees and drainage and retention basins.
Then when you try to get approvals from city councils, county boards as well as planning commissions, that is when politics would come into play. The level of support or opposition will affect the hearing completion. And whether you believe it or not, this can be done in as short as 4 months or even take years and could cost to over millions of dollars. For this, property owners have 3 options to take into mind and these include:
Number 1. Sale and entitlement of the property as is – in such option, it brings the lowest price but costs the least and requires shortest time for disposal of property. On rare circumstances, the land has higher value when it’s not titled.
A 10-Point Plan for Builders (Without Being Overwhelmed)
Number 2. Enter into long term agreement – for this option, the agreement is made with home builder who has incurred the expense of processing the tract map. This option as a matter of fact is more preferred by many but the process can take up to 5 years. Also, the buyer needs to periodically release nonrefundable deposits to the seller after approving contingencies. With regards to escrow closing, it can take place after the final or tentative map approval.
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Number 3. The owner will incur the cost of entitlement – majority of the process is like the second option however, the difference is that the owner is bearing all expenses and has better control of the mapping. Ramifications of every choice have to be carefully weighed prior to making a decision, which is essential to avoid running through problems in the future.