Development and Construction Flashcards
Phases of Development and Construction
1.Acquiring the land
2.Subdividing and developing the land
3.Recording the subdivision plat map
Acquiring the Land
What do we want to build and what do we need to complete those constructions?
How do we get our project plans approved by the city?
What costs and fees will we need to plan for?
During the initial phase, developers will need to be prepared to pay a lot of fees from people they are seeking advice from.
Engineering and development plans
Consultations with attorneys
Surveys
Applications
During the initial phase of developing land, developers will need to be prepared to:
Pay a lot of fees
After phase 1, the developer is now able to
get to work figuring out how to divide their parcel of land into smaller units or lots. SUBDIVIDING
After subdividing, they start developing the little squares of dirt which involves
improving the land and making it usable and productive, something a consumer might want to buy.
Phase 3, Recording the Subdivision Plat Map. A subdivision plat map is the
proposed map of a to-be-developed subdivision indicating proposed lots, streets, and other important organizational information, created according to the layout of the existing parcel of real property.
A subdivision plat map will include:
The size and location of the proposed lots
Streets
Water and sewer lines
Public utilities
Other important information
Steps to Approval
Initial Planning Stage
City Review and Approval
Final Planning Stage
Purchasing the Property
Lastly, the Startup Stage
During the initial planning stage,
before any land is purchased or any construction begins on a subdivision, a developer who has located undeveloped acreage that is for sale has the land surveyed and a plat made.
The developer then plans out the community on paper (indicating roads, schools, and parks).
After the initial planning stage, the proposed plan for the subdivision is then given
to the city for review and approval.
The city ensures that the plan adheres to the overall urban plan and subdivision regulations of the city. If modifications or changes are needed, the developer is notified and allowed to submit changes as required by the city.
the final planning stage, all the initial
planning has met approval and now any loose ends are tied up, all the details are finalized, and the final subdivision plat is turned over to whichever authority has jurisdiction for final approval (that could be the city council, a planning board or commission, a zoning council, or something else, depending on the way the municipality is set up.)
After final approval, the subdivision plat is
filed at the county records office and the developer is given a certificate from the city. It is at this point that the developer may now purchase the property. Hopefully, financing has already been secured.
the final stage is called the startup or disposition stage. This is when
actual construction starts. Infrastructure is put into place: Roads are paved, and water, gas, and electricity are routed to lots where homes will go. The lots are now ready to be disposed of (sold) and are ready for the new owners to begin building their homes.
Dedication is a
gift of land to the government for public use, gifted by the property owner. (You get some land! You get some land! YOU get some land!)
Some dedications are philanthropic and are conveyed to the government for the good of the public, like donating land to the city to be used as a park.
Other dedications often result from the process of development and construction, especially when developing a subdivision. After a subdivision is developed, the developer can dedicate the paved streets, curbs, gutters — whatever they want! — to the public.
This means that the government assumes ownership, and therefore responsibility, for these items, as well. They’ll need to maintain the streets and clean the gutters, all of which are duties the developer probably won’t want to be in charge of, anyway.
A developer develops a 20-acre piece of land into a subdivision. They dedicate the streets and curbs to the city. This means the city:
now owns the curbs and the streets. This is know as a dedication which is a gift of land to the government for public use, gifted by the property owner (developer)
3 Types of Residential Construction
Speculative (or spec) homes
Tract homes
Custom homes
Speculative homes, or “spec” homes, are
homes that are built without an identified buyer. They are built on the speculation that they will be bought once they are constructed.
Tract homes are a type of spec home. They’re sometimes thought of as the
“cookie-cutter” homes in a subdivision that all look alike or, at the very least, pretty similar. Suburbs are often filled with tract homes.
may also serve as model homes that potential buyers can tour before other spec homes are done. They can see what the future homes might look like, see if they like the floor plan, and get a feel for the home before buying.
Custom homes, if you can believe it, are
homes built to the customized specifications of a specific buyer.
