Is it possible to split one property deed into 2?
Aug 08, 2009
in
Commercial Property Loans
I am buying a property that is 2.1 acres. It has two 4 apartment complexes, but because they are on one big deed I have to get a single commercial loan instead of an FHA. The commercial lender suggested seeing if it was possible to split the deed into 2 so I could save on my interest rate (7% vs 10.625). Does anyone have experience with this? How would I go about splitting the one deed into two, with one for each of the buildings?
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4 comments
TarDane on August 8, 2009 at 11:53 pm
You probably won’t be splitting the deed, you will probably need to subdivide the property.
If the property is currently held as one legal parcel (which it sounds like it is), then you must go through the subdivision process with your local government. This is typically a time consuming process, and will require you to hire a surveyor and/or an engineer or attorney.
On the other hand, if the property has already been subdivided, but was simply conveyed in one deed, then there is no issue; you can simply have the property conveyed through multiple deeds.
Robin A. on August 8, 2009 at 11:53 pm
You would need to inquire with your city/county planning commission. It depends on the zoning.
Barney B on August 8, 2009 at 11:53 pm
Laws differ from country to country. Some countries only allow subdivision if the property is bigger than a certain size. So first find out from the local council if they will allow subdivision.
Donnacula on August 8, 2009 at 11:53 pm
It would probably need to be surveyed and then the county assessor/zoning would assign it it’s own Parcel ID Number, which would make it it’s own piece.
it will take quite some time, as you’d involve the county.