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. It can already run you at around 100000 already for the cost of parcel maps for 5 lots or less. On the other hand, tract maps for greater than 5 maps is going to cost you half a million. It is the health department regulations, zoning and general plan as well as biology that is determining the potential size and number of lots. And the processing, regulatory fees, engineering and several other studies and reports are what included in this cost.
Studies and reports as well include 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.
Politics then come into play when you are trying to acquire the approvals required from city councils, county boards as well as planning commissions. The level of support or opposition is going to affect the hearing completion. As a matter of fact, it can be done in short as 4 months or even take years and could cost to over millions of dollars. For this, property owners have 3 paths to take into account and these are:
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 a rarer scenario, the land has got higher value when it isn’t titled.
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Number 2. Enter into long term agreement – here, the arrangement is made with the home builder who 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. For the escrow closing, this normally takes 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.