What Is a Unit Lot Subdivision?
As cities look for ways to increase housing supply without dramatically changing neighborhoods, Unit Lot Subdivisions have become a popular development tool. They allow builders to create multiple homes on a single property while still giving each homeowner individual ownership of their home and land. It is essentially putting a parent building on a parcel and creating lines of ownership in that building. As long as the parent building meets zoning standards multiple lines of ownership can be drawn. Below is a great YouTube video on the subject matter with one of the most respected land use attorneys in town (Terrance Wilson).
Instead of creating traditional lots first and then building homes, the process typically works like this:
- A developer designs and builds a parent building on one parcel.
- The property is subdivided into smaller unit lots around each home or residence.
- Each homeowner owns their residence and the land directly beneath it.
Shared areas such as driveways, landscaping, or open space are usually maintained through a homeowners association (HOA) or shared easements.
Why Developers Use Unit Lot Subdivisions
Unit lot subdivisions allow for more efficient use of land compared to traditional subdivisions. Key benefits include:
- More housing units on the same property
- Lower development costs per home
- Greater flexibility in design, including townhomes, cottage clusters, and small detached homes
- Individual ownership rather than condominium ownership
What Buyers Should Know
Residence in a unit lot subdivision are typically fee simple ownership, meaning buyers own both the home and the land it sits on. However, shared spaces and infrastructure are often managed collectively through an HOA.
Condominiums vs Unit Lot Subdivision-
Condominiums: Often faster to implement because they involve a private attorney and surveyor rather than a long city review process. However, they may carry a stigma in some markets and have more liability.
Unit Lot Subdivision: Offers a clean, municipally reviewed subdivision process that can feel more legitimate to buyers in single-family neighborhoods, though it can take much longer (6 months to a year) to finalize.
Weitz Commercial Take:
We love this tool and think that it can and will be a game changer in many mid-sized cities around Washington State. Everett is a great example of a city that has implemented this law perfectly. There is a need for more homes, but with vacant land growing more and more scarce the city has made it so there are no more density requirements. This means that as long as your building meets the design requirements of a specific zoning, separate unit lots can be created to increase the number of owners in a parent building.
For more information on Everett Commercial Real Estate or Everett Real estate development, we're here to help.
2716 Colby Ave
Everett, WA 98201
t: (206) 306-4034
Scott@Weitzcommercial.com
Nathan@WeitzCommmercial.com
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