Lot Splitting in California

If you have a large portion of land, lot splitting can provide you with benefits ranging from increased privacy for building a new structure to subdividing the land for development. Just like the name suggests, lot splitting involves dividing a property into two or more parcels. If your property is in a desirable location, it may be more attractive to potential buyers or developers.

No matter the reason for lot splitting, though, it is crucial to familiarize yourself and follow all rules and regulations. From complying with zoning requirements to considering the environmental impact, here is all you need to know about lot splitting in California.

What Is Lot Splitting?

The lot-splitting process involves taking a large parcel of land and creating several separate, smaller lots on the property. You can divide any type of land, ranging from rural to underdeveloped to commercial.

Lot splitting can be divided into two main types of subdivisions:

• Minor subdivision: If the land will be split into four or fewer parcels, it is considered a minor subdivision. Keep in mind, though, that the exact number of parcels can vary based on the jurisdiction. The application for a minor subdivision is called a tentative parcel map and is typically less involved and doesn't have as rigorous of a review process.
• Major subdivision: For it to be considered a major subdivision, the land must be divided into five or more parcels. Just like with a minor subdivision, the exact number of parcels can vary. Because the land is usually divided for a larger-scale development like a residential community, the process is much more involved and will include a more detailed review and approval process.

Advantages of Lot Splitting

Lot splitting is often done for a wide variety of reasons — offering in-laws or family members a private place to live, downsizing property, reducing a big mortgage and investing being some of the most common goals. No matter what your needs and goals are when lot splitting, you will be able to take advantage of all kinds of benefits, including:

• Increased property value and potential for profit: When your lot is subdivided, there is an increased chance that it will appeal to potential buyers looking for a piece of land that is readily usable. Whether it is a first-time homebuyer or a developer, you have the chance to increase your property value and potential for profit by dividing it into multiple lots.
• Creating additional buildable lots for development: If you are not using your entire property, developers may be interested in purchasing it to create buildable lots for development. Some developers may not want to buy a large piece of property at once, so breaking it up can make it more accessible and appealing to them.
• Utilizing space more efficiently on large properties: Maximize your property's potential by breaking up the land. Whether you want to fix up and sell a portion of it or add some short-term rentals on the property, lot splitting will help you use your space more efficiently and effectively.

Key Considerations for Lot Splitting

Consider lot splitting carefully before starting the process. First, make sure there is actually a need for subdivided lots in your area. It may be helpful to reach out to homebuilders to learn more about the market and current needs.

Depending on where you are located, there may be different zoning requirements and subdivision regulations or restrictions. Having an awareness of these beforehand can help guide the decision-making process and maintain compliance. Also, changes to your property may impact anything from property taxes to utility services. Keeping these factors in mind can help you avoid surprises that arise from your decision to split a lot.

Of course, you will also need to consider costs. Even though you may be lot splitting to rent out a portion of your property or invest it, there could be significant costs associated with zoning rules and requirements.

Process of Lot Splitting

Homeowners in California typically have two options for lot splitting — using a tract map or a parcel map. These processes are straightforward. Usually, you will need to start off by having a surveyor map out the boundaries and provide any necessary paperwork to complete the process.

For both, homeowners will need to comply with local zoning and building codes. However, there are also a few differences between:

• Tract map: A tract map enables you to divide large parcels of land. Usually, the goal is to create residential subdivisions with individual lots.
• Parcel map: A parcel map is used to create two or more parcels. Unlike with a tract map, these split lots are usually used for commercial or industrial purposes.

Challenges of Lot Splitting

Even after significant preparation, you may experience some challenges during the lot-splitting process. For example, local zoning ordinances and regulations are essential factors in decision-making, and the local government will guide those steps.

You may also need to address some community concerns about dividing properties. Whether it is from those in the neighborhood, community or government, you may find yourself having to meet up with some of these groups.

You will also need to ensure you remain in compliance with environmental and land use laws. Working with a team that understands and is committed to following these rules and regulations ensures you stay in compliance every step of the way.

Interested in Lot Splitting Your Property?

At Valley Home Builders, we provide the support and services you need to split up your property. Whether you intend to divide land for beneficiaries or increase your revenue by offering rentals, our team is here to work with you from start to finish. We are a full-service home remodeling and expansion company committed to making your vision a reality.

If you are interested in taking the next step and seeking out expert advice for your lot-splitting endeavors, we can help you get started today. Fill out our online contact form to explore lot-splitting opportunities and request a free consultation.