Are you thinking about performing a subdivision? A large, underused tract of land naturally encourages thoughts of turning that large tract into multiple smaller tracts that will be put to better and more profitable use. How complicated can it be to turn one large tract into 100 smaller ones? Very complicated indeed.
A major state law, the Municipal Land Use Law (MLUL), as well as a wide variety of local ordinances can making navigating the subdivision process difficult. To navigate this system requires detailed knowledge of which government bodies do what, how to apply for permits and approvals, what supporting documentation needs to accompany the application, whether you’re responsible for providing notice of the application and hearings, who needs to receive the notice and a host of other technical details.
The MLUL specifically requires approval of subdivisions—defined generally as any division of a land tract into two or more lots for purposes of sale or development—with the exception of subdivisions that are performed in accordance with the terms of a will or a court order.
The approval process differs depending on whether the subdivision is deemed to be a “major” subdivision or a “minor” subdivision. What makes a subdivision major as opposed to minor? That’s determined by two things:
Classifying the subdivision as major or minor determines whether approval is a two-step process of preliminary then final approval (needed for major subdivisions) or simply a one-step approval (needed for minor subdivisions).
Gaining preliminary approval requires submission of a plat and any other information that is needed in order for the approving body to make an informed decision on the application. The preliminary approval will be granted or denied:
Both time limits can be extended if the developer agrees to the extension. Note that the process may begin all over again if the approving body requires the developer to make substantial changes to the original plat and plan.
The information required for final approval is more detailed than for preliminary approval. The board analyzes whether the detailed plans conform to the standards set out in the local ordinance. The board has 45 days from the submission of the application to render a final decision, unless the developer agrees to an extension. If no decision is rendered within 45 days or the agreed time, the application is deemed to have been approved.
Subdivision approvals are frequently complex procedures with many traps for the inexperienced and unwary. For example, there are special disclosure rules regarding for ownership of corporation or partnerships requesting subdivision of land they own, and additional disclosure rules for ownership of corporations and partnerships that own the corporations or partnerships requesting the subdivision of their land.
And the approval doesn’t completely end the matter. The MLUL also imposes specific requirements that the approved subdivision plat be filed by the developer with the County recorder. Failure to file within the time limit means the approval expires and you’re back at square one.
Put 20 years of experience in New Jersey real estate law behind your subdivision project by consulting the KingBarnes. If you have concerns about a planned subdivision, call us to schedule your consultation at our North Wildwood, Marmora or Egg Harbor Township office today.
