Purchasing Subject To Subdivision

I am interested in a property that meets all of the lot size requirements for a subdivision. The property has a house on it now and is listed for under $700k. I can subdivide into 2 lots w/o requiring a variance. Houses in this exclusive waterfront/yacht club area sell for between 800k-2.5mil. Comps show several properites in the 1.5mil ball park.(New houses,like i would build)



My question is how can I put an offer in on the house that is a.) contingent on the subdivision and b.) perhaps an offer that will give me a 6 month option.



What I would like to do is get the property under contract, then I can proceed with the subdivision approval process. I currenty cannot purchase & carry the note for almost 700k. I just purchased another 3 rehab houses and have 1 going on the market this week. The most cash I can probably put together is about 90-100k. How should I approach this. I am open to suggestions.

Comments(1)

  • flyboy6th January, 2006

    I agree with your attorney. If the deal looks good, then TIE it up.

    As for dividing one lot now and more at a later date. Be careful. Here in Orange County N.Y, if you subdivide one lot out of a parcel, then you need to wait 5 years in order to subdivide again if you are still the original owner.

    Check the rules and regs![ Edited by flyboy on Date 01/06/2006 ]

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