Has anyone split land at closing.

Question

Just locked up our third rental property, its a home path house that has the lot next to it deeded as one property. The official descriptions states lots 23 & 24. the house is centered on one lot. All other houses on the street are on single lots (80x125). Hopefully I covered everything pertenant.

Any way I know I can not split at the initial closing (I asked). But, has anyone been able to split during refinance time and if so what actions or pitfalls should I be cognoscente about. Would like the flexibility to sell, build, trade if needed.

Bill Gulley · Answer

Look at the legal, if it says lot 23 and lot 24, you have two legals,  you won't need to go anywhere as it's already plated. Call the assessor and see if it's a legal that you can put a separate tax ID on, as the join IDs of adjoin properties. Look at the plat, if it's plated you can figure the area, just to make sure it's a buildable lot, you can call building regs and ask what the minimum size needs to be. There should be no process involved with a plated lot, just make sure it's buildable.

If it's a meets and bound description, beginning at the northeast corner, type, and simply contains an area large enough for 2 lots, you'll need to sub-divide the area and follow the process of a minor subdivision. . :)

Troy Meyer · Answer

Thanks all for your input.

Wayne Brooks · Answer

Yes, it's definitely a process and you have to go thru your county planning and zoning, and it gets reviewed by numerous other depts.  The survey, and survey doc.s prep alone for mine was $2,800 just to the surveyor.  It's not a quick process, not in Palm Beach county anyway.  This is assuming from your original posts that it is indeed one parcel.  Look back through previous sales of these properties to perhaps verify.  But, if there is one Parcel Control Number, or one Tax Assessment including both lots, then it's definitely one Parcel.

Michael C. · Answer

Please check with the title company about splitting lots and insurability of the parcels. A formal lot split may entail getting approval from the zoning department of the city/county where the property is located and (may) also require public notice to neighbors.

Items of issue are parcel size after the split, boundaries & ratio of of the structure with regards to property lines, parking, utility location, accessibility to the lot (not land locked).

Troy Meyer · Answer

@Wayne Brooks did you have any issues with the process that the county made you go back and do? Did you have to file new surveys the day of closing or  prior. This is not something I have scheduled to do right now, just trying to research if it it going to be cost effective and plan accordinly. Thanks for your input.

Wayne Brooks · Answer

From your description, it is One parcel consisting of two lots.  You'll have to go through some type process with your county/city in order to divide these two lots, into two different Parcels.  You can't just sell half of a piece of One property, even if it contains two lots.  I just did it on one parcel, consisting of 9,  25' lots.

Bill Gulley · Answer

If you have two separate legal descriptions buying it together is not an issue.

If the house and property is sufficient in value for a refi you can simply grant that legal as collateral, the other lien will be released when the loan is paid off.

You should also allocate land values in your contract. While a purchase contract may state a land value you can also pay cash for one parcel and only finance the other with your purchase money loan, if any one is wondering. What you assign as a land value needs to be reasonable too. :)