Humber Real Estate - Course 4, Module 14: Transactions Involving Development Land and Farms 2023 Questions and Answers
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Humber Real Estate
Humber Real Estate - Course 4, Module 14: Transactions Involving Development Land and Farms 2023 Questions and Answers
- Zoning - the highest and best use should conform with the zoning, unless there is a probable and imminent prospect that the zoning will change or be amended to accommodate the...
Humber Real Estate - Course 4, Module 14: Transactions
Involving Development Land and Farms 2023 Questions
and Answers
- Zoning - the highest and best use should conform with the zoning, unless there
is a probable and imminent prospect that the zoning will change or be amended
to accommodate the highest or best use estimate not currently legal
- Physical possibility of the proposed use in relation to factors such as the size or
shape of the lot, soil condition, water drainage, etc.
- The demand for the proposed use along with its economic and financial
feasibility
What are 3 key factors that an appraiser considers when estimating the highest and
best use of an undeveloped vacant site?
- Either conform to the zoning or be legal non-conforming
- Conform to the other buildings in the area
- Add value to the land
To estimate highest and best use for an improved site, the improvements must:
Plottage
Land assembly is more commonly known as what?
A process that involves acquiring multiple parcels of property and combining
them, thereby increasing the total land's overall value (vs. their worth separately).
A larger parcel of land may have greater utility and potential for development. A
land developer may find one larger parcel of land more appealing than several
small ones.
What is Land Assembly?
- Raw land (in its natural state), with no services
- Vacant land with services
- Unoccupied property up to 5 acres with improvements
- Large tracts of land (5 acres or more) ready for a change in use
- Farmland (operational or not)
- Smaller properties available for assemblage
- Brownfield sites because these sites are frequently located in desirable urban
locations and have the advantage of in-place infrastructure, such as roads,
utilities, water/sewer services, schools and transit facilities
What types of properties appeal to land developers?
External, internal.
Generally risk is assessed as either ____________ or ____________.
Beyond the control of the investor.
External risks are often what?
Created by the management decisions of an organization.
Internal risks are what?
, - Financial issues
- Market issues
- Business issues
- Building issues
Most risk analysts divide risk into what 4 broad segments?
A legislation that provides for growth plans that establish long-term strategies for
identified growth areas. It also requires that all decisions under the Planning Act
or Condominium Act conform to a growth plan as soon as the growth plan is
effective.
What is the Places To Grow Act?
- Designation of any geographic region of the province as a growth area with a
specific focus
- Development of a growth plan in consultation with local officials, stakeholders,
public groups and members of the public and indigenous communities for a
particular region
- Decisions about growth to be made in ways that promotes greater housing and
transportation options; investments in regional public service facilities in
downtown areas; and maximizes infrastructure investments in communities while
balancing regional needs for farmland and natural areas
The Places To Grow Act enables what?
- Physical requirements: Specific needs such as site characteristics &
transportation
- Investor/user objectives: General goals of the buyer, including type of property
being sought, investment return (if applicable), lease vs. own & type of ownership
- Financial requirements: Amount of capital, other financial resources, credit
standing & financial history
Buyer needs generally fall into 3 categories:
- Key documentation such as existing zoning verification
- Restrictive covenants or title restrictions that apply to the property
- Favourable or unfavourable environmental conditions
- Transportation services
- Other available services
- List of expenses to plan for the effort involved in extending these services
- Current economic climate for this type of investment
- Physical features of the development land
- Tax incentives
- Easements
What key information should a salesperson gather and verify regarding a development
land?
- Any indication of underground buried materials (e.g. surface vents and metal
cover plates)
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