Carlos, if I understand your question, as a broker, you are pretty much forced to use the the forms provided by your MLS / board of realtors. The reason is that by using other forms it could be construed as practicing law. Furthermore, having been around for a while and having had my butt handed to me while developing land. May I make a few other recommendations. I apologize if you were already aware of all this. Understand your customer and help keep them from messing up.
Find out what kind of time tables and costs are also included in your area, make sure you do not take a customer down to path to bankruptcy.
Go to the county and be sure they can build, how much the permits are going to cost, find out the likelihood of having to do soil samples, and how long it will take to issue the permits. Contact Architects and find out how much they are going to charge, find out how much the engineers are going to charge. A local knowledgeable Architect, might know much of this, as it is. So starting with an Architect may be a good idea. A development goes like this, I have also included the range of fees I have seen for these things:
1. You buy the property, $3,000 to $14,000,000
2. You get the architectural renderings, $9,000-$200,000
3. Land survey $1800-$10,000
4. Engineering (usually included with the drawings.)
4. Apply for permits and submit plans to the city for approval. $5,000-$200,000
I have seen people get started on these things, buy the land and then be stuck paying the taxes on the land without having the money to start building.
At this point the the city could ask for soil samples, retaining walls, I even had them make one of my customers fix a fire hydrant a half mile a way. On bigger developments they may want contributions to school funds. Do your diligence and let your customer know the risks. Make sure they can finish the project.
Fees to expect. Architect, engineering, possible soil samples, environmental studies, permits, city and county fees and taxes. Costs of city services sewer, water, electric and gas, if there is a hill retaining walls. Plan approval. All of this most likely needs to be paid for before financing is available. If you can get everything done.It is hard to get a land loan anymore, without having permits issued.
NOTE !!! do not allow any type of work whatsoever until the loan is in place or you will not be able to get title insurance. No title insurance means no loan!!!
At this point we can do the loan, the loans my company does many times usually include up to 80% of the purchase price, paying off all liens.
Now we can usually do 100% of the cost of building in a series of draws. But note, if it is owner user builder, someone has to pay for the costs of building and then get reimbursed. Many builders will foot this bill, but often if you have the money you can get a much better deal from the builder.
You can make more money developing property than anything I know of. But I have seen a lot of people get their heads handed to them. Feel free to contact me if you need advice, there is no charge for advice.
