Processing lot entitlement may take more than 5 years and can be pretty expensive at the same time. It can already run you at around 100000 already for the cost of parcel maps for 5 lots or less. Tract maps for greater than 5 lots on the other hand may cost you more than 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. In this cost, included are processing, regulatory fees, engineering and several other studies and reports.
Studies and reports as well include storm water treatment, approval cost, archeology and anthropology, soils, biology, traffic and noise. As soon as the map is approved and recorded, there are various fees that need 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 after, politics will come to play when you try to get approvals needed from city councils, county boards as well as planning commissions. The completion of hearing will be affected by the level of support or opposition. They may be completed in as 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 this option, it is bringing the lowest price but costs the least and also, requires shortest time for disposal of property. On rare circumstances, the land has higher value when it’s not titled.
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Number 2. Enter into long term agreement – for this option, an arrangement is made with home builder who incurred the expense of processing the tract map. As a matter of fact, this option is the more preferred by many but the process may take up to 5 years. Aside from that, it is important for the buyer 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.