By selling a property as part of a land assembly, owners can demand a higher purchase price. The individual property is worth more to a developer when combined with adjacent properties.

 

What is Land Assembly? A land assembly refers to the joining of adjacent lots to make a larger parcel.

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Why is Land Assembly gaining popularity? Due to the need for higher density in Kelowna, the developers are looking to redevelop and increase density in what traditionally were single-family home communities.

 

Where is Land Assembly happening? The frequency of land assemblies is most common along in central locations close to city center and transportation. Sometimes, adjacent property owners decide to market the sale of their properties altogether and other times a developer may initiate the process by approaching a group of owners to purchase all their properties.

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How does Land Assembly benefit owners? By selling a property as part of a land assembly, owners are able to demand a higher purchase price since their individual property is worth more to a developer when combined with adjacent properties.

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With all land assemblies, consideration needs to be given to the following items: Intention of all owners in the land assembly to sell; whether all properties in the land assembly will be treated equaly, or if there are special characteristics of some properties that warrant special treatment, such as a corner lot; Formula to determine purchase price of each lot and; the Official Community Plan for the areas.

Land assemblies vary from traditional property sales, in that they are dependent on all (or most) of the properties in the assembly enter into binding contracts. Furthermore, the timelines for land assemblies are often much longer, from the time of signing a contract to removal of subject conditions to the completion date, can be several months and even years.

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Due to this longer timeline, there are commonly deposits given throughout the process. Consideration must be given to the amount of time a property is tied up by the contract before the subject conditions are removed, since there is no guarantee the transfer will complete until subjects are removed.

 

Steps to a Land Assembly

1. LISTING your property for sale

2. MARKETING your property to potential Developers

3. OFFER NEGOTIATION (1-2 week) presentation to acceptance

4. ASSEMBLY CONDITIONS (2-3 months) assembling neighbouring properties

5. FEASIBILITY CONDITIONS (2-3 months) Plan Submission, Level 1 Environmental, Soil Tests, Arborist Study, etc.

6. SUBJECT REMOVAL and DEPOSIT put in place

7. COMPLETION and POSSESSION: (6-12 months)

 

Estimated Timeframe 12-24 Months

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With the land assembly, there is an opportunity to maximize the highest and best use of the land, there is a longer timeframe from start to completion, and some benefits include.

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• No Showings, property value typically determined by lot size

• Tenants able and encouraged to stay, longer possession which should not affect leases

• Time to find a new home

• No signs if you choose

• You don't pay until we sell

• You still have the right to choose to accept price offered or decline it

• Not tied to any contracts

• Higher value than selling on your own

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Curious to know the difference in home price from selling as a land assembly and to selling on your own? Schedule a no obligation consultation here!

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