Subdividing Constructed Townhouses

[Jason Scott Miller]

Hi Everyone -

I'm looking at a development in California of 10 constructed townhouses. I see a lot on subdividing land for development, but I can't find much information on subdividing properties that have already been development. My plan would be to convert these townhouses into individual units and selling them off. Does anybody have any insights or references on this process?

[Jay Hinrichs]

Originally posted by @Matt Devincenzo:

To answer your question as simply as possible; subdividing developed or raw land is essentially the same. In CA all subdivision has to be done by mapping action (as opposed to a deed description which it was able to until 1972ish). So you need to submit a Tentative Map (TM) to the city/county that has jurisdiction. Within the process they will review the California Environmental Qualities Act (CEQA) impacts and provide conditions that you have to meet to then process a final map and separate the lots. This process is the same if you did condos, just what they are approving is slightly different. 

That said, there is a possibility that these are already mapped legal townhouse lots, and they are legally able to be sold individually. In that case you just need to complete the parcel segregation at the tax assessor to complete the action. The local assessor may or may not require you to complete a Certificate of Compliance (COC). Which is basically a process that they go through to confirm legal lot status. After that you need to have a land use attorney establish an HOA and go through the CA Department of Real Estate for it (assuming one is needed).

So as far as basic research to get started, look up the map and/or legal of the property you're interested in. You're looking for "Lots 1-10 of Map 1234...." or on the title sheet to the map you're looking for a condominium note. Either of those let you know that these may already be able to be sold individually you just need to complete the process.

I have not thought of Ceqa in 20 years that was the bane of our developing life back in the day.. !!