# Subdivision as a Condition of Sale



## kilgrosh (Apr 29, 2014)

Hi Everyone, 
I am in the process of finding a homestead/farm outside of Philadelphia. My budget is around $400k, which surprisingly in this area doesn't get you much. I cannot move out of state, and I must live within a 50-mile radius of the city as a condition of my job. My goal is to own a farm but land is so expensive around here that it is very difficult to get land in a good school district. 

I found a property that is 123+ acres for $725k. The property is under the county Farmland Preservation Program, which means that the land cannot be used for anything other than agricultural. There is a 3bd/1ba farmhouse, large barn, milking barn, 1bd/1ba rancher, and a few other random outbuildings on the property. The two homes are near the barns and are near the main road. The land is currently leased between crop farmed for $1400/year and hay farmed for $1000/year (don't know the details of the leases). The rancher is rented out for $800/month. 

My idea was to make an offer with subdivision of the land as a condition of the sale. If initially agreed upon, I would apply to have the land subdivided into three 40 acre parcels. I purchase the one with all of the buildings, and sell the other 2 parcels before I gain ownership. As best as I can explain it there would be three conditions of the sale: 1) the county allows for the subdivision and the placement of two additional homes on the land, 2) the two subdivision parcels are under contract, and 3) the lender agrees to finance the deal if other conditions are met. The goal of the deal would be to obtain my 40 acres for about $400k and sell the other 2 parcels each for $200k or less. 

Does this seem possible? Or is it a pipe dream? Am I missing something in my thinking?


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## Alice In TX/MO (May 10, 2002)

If it is listed as for sale without subdivision, my advice is don’t waste your time with an offer dividing it. 

I have recent experience with this.


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## FreeRange (Oct 9, 2005)

Subdividing land is expensive. Plats, civil engineer fees, surveys on 3 places, running utilities (which is optional). Even if the seller agrees to do it, they will pass those costs onto you.


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## kilgrosh (Apr 29, 2014)

The property can be subdivided. The use of the property cannot change from agricultural. I figured the subdivision process might be costly but I haven't gotten any other information back from the county on what it entails.


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## Alice In TX/MO (May 10, 2002)

Talk to a local surveyor.


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## Alice In TX/MO (May 10, 2002)

What county?


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## kilgrosh (Apr 29, 2014)

Douglass Township, Montgomery County, PA

Here is the listing: 
https://www.realtor.com/realestatea..._19525_M48651-07935?cid=other_shares_core_ldp


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## Alice In TX/MO (May 10, 2002)

This may help....

https://www.montcopa.org

https://www.montcopa.org/740/Subdivision-Land-Development-Reviews


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## Wolf mom (Mar 8, 2005)

In some states, you can divide a parcel into three pieces and sell two off at different times without considering it a "subdivision". Now , if you want to put restrictive covenants or deed restrictions that run with the land, that may be a different matter. 
I'd check as to your state's definition of a subdivision (like a bunch of houses on 1/3 acre lots where you have put in roads, sewer, etc. and have CC& R's) versus just selling two 40 acre parcels with a few covenants that run with the land.


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## kilgrosh (Apr 29, 2014)

Alice In TX/MO said:


> This may help....
> 
> https://www.montcopa.org
> 
> https://www.montcopa.org/740/Subdivision-Land-Development-Reviews


Thanks. I will start reading. I have a few phone calls in to the local offices about the easements with the property.


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## jr23 (Sep 3, 2013)

you have county issues but you better check with the local town for there rules and regs and look at the tax bill on the land split it into 3 might significantly raise it. and then would the 3 parcels be viable for farm use. soon there not going to let people just have a cow and horses and call it ag land im from bucks county had lot of farms mostly gone now


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## Alice In TX/MO (May 10, 2002)

Old post.


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