Obtaining real estate entitlements is a critical step when acquiring vacant land, redeveloping a property, or confirming allowable use of existing developments. These entitlements are specific permissions granted to a property that relate to its use. Unlike general property rights, such as the right against unlawful search and seizure, entitlements pertain to the specific use of the land as granted by the appropriate governing agency. While real estate entitlements can apply to improved properties, they are most commonly associated with buying or selling unimproved land.
The Role of General Plans
Entitlement requirements typically stem from a county or city's general plan, which establishes land use and development requirements both now and in the future. These plans designate specific areas for residential, commercial, and open space use within their jurisdiction, benefiting residents and businesses alike. As real estate development is a long-term endeavor, these plans often outline land use goals and requirements for several decades.
However, general plans provide a broad overview and require more specific documents such as zoning regulations and land use regulations to provide further clarity. Building codes further delineate construction standards, materials, and maintenance. Some communities may also necessitate compliance with architectural review boards as part of the building code. Additionally, Covenants, Conditions, and Restrictions (CC&Rs), which are contractual agreements entered into when purchasing a property, can also impact development. Lastly, permits are required to ensure compliance with all applicable requirements during grading, construction, remodeling, or landscaping.
Navigating the Entitlement Process
To illustrate the entitlement process, let's consider the example of building a custom home on a vacant lot. The specific entitlements needed will vary depending on state, county, and city requirements. Some common entitlements include:
- Subdivision Map (approved Tentative and Final maps)
- Architectural Design Approval (per CC&Rs or similar requirements)
- Grading Permit
- Tree Removal/Relocation Permit
- Building Permit
- Utility Connection Permit(s)
- Sewage Disposal System Permit (if a septic system is required)
Before these entitlements are granted, supporting documentation is required to verify the property's suitability for the intended improvements. This may include boundary and topographic surveys, environmental reports, geotechnical and soils analyses, tree and vegetation inspections, perc test reports, well tests, detailed site plans, and architectural reviews. As every site is unique, the specific entitlements and related studies and reports can vary significantly.
Acquiring Entitlements: Developer's Responsibility
The responsibility of acquiring entitlements lies with the individual or entity planning to develop the property. Sellers often conduct tests and inspections (e.g., environmental testing) to reduce the buyer's risk and increase the land's value. Many developers require that entitlements be in place before they purchase a property. In such cases, an option contract or extended escrow period may be preferred to allow sufficient time to obtain entitlements before closing the deal.
If you have any questions or need information regarding real estate entitlements, land acquisition, or any other real estate topics, feel free to reach out. We're here to help you unlock the full potential of your property.
For more information on buying residential land, check out our article: Tips For Buying Residential Lots.
