Segregation of land, what is it?

Segregation of land, what is it?
Published on: 19 December 2023

Table of contents

Farm segregation is the process of dividing a property into two or more separate parcels or lots. This is usually done to create smaller parcels that can be sold or developed separately. Segregation may be necessary to comply with certain zoning regulations, such as when a property owner wishes to subdivide his or her property into smaller lots in order to build several dwellings. It may also be necessary when an owner wants to sell one part of his property and keep the other part. In general, farm segregation involves the creation of new title deeds and obtaining permits and approvals from local authorities and therefore specialist advice is advisable.

Who carries out the segregation of a land?

The segregation of a land is usually carried out by an engineer or architect specialised in the elaboration of land division projects. These professionals are trained to make the necessary calculations and prepare the necessary plans and documents to carry out the segregation of a finca in accordance with local regulations and standards.

In some cases, it may also be necessary to work with other professionals, such as lawyers or notaries, to ensure that the segregation is carried out legally and correctly. In addition, it is important to obtain the necessary permits and approvals from local authorities before starting the segregation process.

Difference between division and segregation

Division and segregation are two terms commonly used in real estate to refer to similar processes but with some key differences.

Partitioning involves the subdivision of a property into two or more separate parts, usually for the purpose of creating new parcels of land that can be sold or developed separately. Partitioning may be necessary to comply with zoning regulations or to allow for housing or business development in a given area.

Segregation, on the other hand, involves the separation of part of an existing property to create a new, separate property. Segregation may be necessary when an owner wants to sell one part of his property and keep the other, or to comply with zoning regulations that require certain minimum plot sizes.

Who pays the costs of a segregation?

The segregation of a property entails a number of costs that must be borne by the owner or by the parties involved in the transaction.

First of all, it is important to note that the costs of a segregation may vary depending on the complexity of the process, the size of the property, the geographical location, local regulations and rules, among other factors. Therefore, the costs of a segregation must be assessed on a case-by-case basis.

In general, the costs of a segregation may include the following items:

  • Professional fees: As mentioned above, the segregation of a land must be carried out by an engineer or architect specialised in the elaboration of land parceling projects. These professionals charge fees for their services, which may vary depending on the complexity of the operation.
  • Fees and permits: In order to carry out a segregation, it is necessary to obtain certain permits and authorisations from the local authorities. These permits are usually subject to fees and charges, which may vary depending on the location of the property and the size of the operation.
  • Taxes: Once segregation has been completed, certain taxes associated with the new property may be payable. For example, if a new plot of land has been created, property tax may be payable.
  • Processing of documents: During the segregation process, certain legal documents, such as deeds and registrations, must be processed and may also be subject to fees and charges.

Now, as to who pays these expenses, we can say that it is generally the responsibility of the owner or the parties interested in the operation to bear the costs of the segregation. In this regard, it is important to note that segregation is an operation that aims to obtain an economic benefit, either through the sale of the new property or the development of a real estate project. Therefore, the costs of segregation are expected to be borne by those who obtain this benefit.

For example, if a landowner wishes to sell part of his property and carry out the segregation to create a new plot, it is his responsibility to pay the costs associated with the operation. Similarly, if a group of investors want to carry out a real estate project in a certain area and need to segregate a property to do so, they will have to bear the associated costs.

In some cases, a situation may arise where one of the parties to the transaction bears the costs of the segregation in exchange for a subsequent benefit. For example, if a developer wants to carry out a real estate project in a certain area and needs to segregate a property in order to do so, he may reach an agreement with the landowner to bear the costs of the segregation in exchange for the purchase of the new plots.

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