Difficulty: Medium

Average Score: 67%

A borrower pays $200,000 for a home. The buyer makes a down payment of $40,000 and obtains a loan for the balance of the purchase price. The lender charges 4 discount points for the loan.

When can the developer begin to list lots for sale with a broker?

Rationale

When the developer has submitted his plat map to local authorities, received approval, and recorded it.

The developer must first submit the plat map, which details the subdivision layout, to local authorities for approval. Once the authorities grant this approval and the plat is recorded, the developer can legally list the lots for sale, ensuring compliance with local regulations.

A (after the developer records prescriptive easements for lots that have no street frontage) YOUR ANSWER

Recording prescriptive easements may be necessary for access issues, but it does not directly relate to the legal ability to list lots for sale. The developer must first have the plat map approved and recorded before addressing easements, as this step is foundational to the subdivision process.

B (when local authorities grant the developer a conditional use permit allowing residential construction) YOUR ANSWER

While a conditional use permit is important for permitting residential construction, it does not alone allow the developer to list lots for sale. The developer must also have the subdivision plat approved and recorded, which is a separate process that ensures the layout is compliant with zoning and planning regulations.

D (immediately, as long as the current zoning ordinance permits the residential use he is planning) YOUR ANSWER

Zoning compliance is essential; however, it does not permit the developer to list lots for sale without fulfilling the plat approval and recording requirements. Listing lots prematurely could lead to legal issues if the subdivision has not been officially recognized by local authorities.

Conclusion

The process of subdividing land requires adherence to legal and regulatory standards to ensure a successful sale of the lots. The developer must submit a plat map for approval and record it before listing the lots for sale. This ensures that the subdivision meets all local regulations and allows the developer to proceed confidently in the sale of the property.

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