Posted by David Krulac on June 20, 2000 at 21:14:51:
condos, coops, lots in subdivision, anywhere that there is a time factor involved before the owner can convey. Look in the news, attend public meetings, talk to lawyers, engineers, surveyors handling this type of work, and contact zoning officers.
hth
David Krulac
Buying prior to subdivision approval - Posted by L(NYC)
Posted by L(NYC) on June 20, 2000 at 08:28:26:
I read in "real estate investing from a-z’ that people put refundable downpayments prior to subdivision approval, it was put in the investment alternative chapter. I would like to know if anyone has experience in investing in this way. If so, I would like to know the specifics of deals such as if they have done this in condominum homes, cond apartments , suburban areas or metro areas. I myself am from NYC , and would like to know if this is possibe to be done here. Any responses or advice will be appreciated.
Re: Buying prior to subdivision approval - Posted by GIO
Posted by GIO on June 20, 2000 at 15:58:57:
i agree with D.Krulac although the time it takes depends on the county. At the time i’m currrently working on a project i’m currently selling in L.I., the approvals should take 6-8 months. These subdivision contingencies are very common as i have come to find out, and the costs can also vary, this particular case will cost $6-$7000 for the paperwork alone. (land will be subdivided and will be build upon), and still there is a chance that it wont be approved. There is no reason why you should be obligated to buy something that will not meet your needs unless the rewards are worth the risk. Every one of the builders i encountered would not buy the land without the approval.
Re: Buying prior to subdivision approval - Posted by David Krulac
Posted by David Krulac on June 20, 2000 at 09:14:21:
Can’t say about NY, but in Pa it is technically illegal to sell prior to subdivision approval, and impossible to record a deed for a tract that does not have subdivision approval. However, reservations or contracts are written on property “subject to final subdivision approval” every day of the week. It enables the buyer to lock in the sale price, usually at the cheapest price possible for a very small deposit or reservation fee. Subdivision approval can be a minimum of 1 year and sometimes much longer, so if you can wait , you can “buy” a property today at a reduced today price and not settle until next year or later when presumably the price will be higher. There are seldom any monthly payments so all you are out is the opportunity costs of your deposit/reservation fee.
Re: Buying prior to subdivision approval - Posted by L(NYC)
Posted by L(NYC) on June 20, 2000 at 18:51:59:
Thanks, So can you tell me where to go to obtain property on " subject to final subdivision approval". I had read of it as an investment alternative to go into, my only thing is direction. What type of property does this contract works best for? can this work for a city area, maybe (condos, complexes, single family). Where can i obtain the contracts as well, developers? Sorry for asking so many questions, just want to stay diversified with creative options:) Thanks for writing back.