A Buyer wanted to purchase vacant land that could be subdivided (split) to build two houses. The Buyers agent, found a vacant lot in the Multiple Listing Service (MLS) described as “all usable 2.62 acres, county states 1 acre min. lot size could be split”

The Buyers agent confirmed with the Sellers agent that the lot could be split. The purchase contract gave the Buyers the right to investigate and inspect the vacant lot within 21 days of acceptance. After the sale closed, the Buyers learned from their civil engineer that the lot could not be split because the county had designated it ‘impact sensitive’ requiring a 4-acre minimum lot size. The Buyer sued the Sellers agent for intentional misrepresentation.

At trial, the Sellers agent argued that the Buyer had ample opportunity to inspect and investigate the requirements for Lot Splitting before the sale closed. He also testified he had talked on the telephone “to the county” and was assured the lot could be split. The Buyers made it known to their agent and the Sellers agent that they wanted to purchase a vacant lot that could be subdivided so as to build two houses.

Though the sales contract had an exculpatory clause that said the Sellers did not guarantee the condition of the property, the judge said, the MLS Listing and the Sellers agents statements led the Buyers to believe that the lot could be divided. The fact the Buyers had 21 days to investigate and inspect the property to verify whether it could be divided did not create a legal obligation to do so, the judge emphasized. The evidence presented at trial indicates the Sellers agent intentionally misrepresented the vacant lot, he noted. Therefore, the exculpatory clause in the sales contract does not protect the Sellers agent from liability for deceit, and the Buyers may proceed with their lawsuit for damages.

I have been a realtor and real estate land specialist in Los Angeles for the past 15 years, creating opportunities for land-owners and Buyers by brokering vacant land throughout the Greater Los Angeles area. I can be contacted at sales (at) westsideland (dot) com and information can be obtained from www.westsideland.com.

Click here for PDF version

Land owners are not altogether surprised at the general price range their land might sell at. However, some hope or expect to hear a higher value that what an objective analysis concludes.

The market value of your land is not:

• What you have in it
• What you need out of it
• What other properties are listed at
• What the tax assessor says it is worth
• The highest list price suggested by one of the agents that you are interviewing.

The true market value of your land is what a Buyer is willing to pay:

• Based on today’s market
• Based on today’s financing
• Based on today’s competition
• Based on today’s economic conditions
• Based on location
• Based on how long it takes to sell

Land that will sell are those that:

• Are well priced and properly prepared at the start of marketing
• Are perceived as a good investment
• Are well and thoroughly marketed
• Have easy access

As a final reminder to the Seller:

• You can control the price you ask
• You can control the condition of the property
• You can control access to the property
• You cannot control market conditions, including Buyer financing, appraisals, et al
• You cannot control the motivation of your competition
• You cannot control value

I have been a realtor and real estate land specialist in Los Angeles for the past 15 years, creating opportunities for land-owners and Buyers by brokering vacant land throughout the Greater Los Angeles area. I can be contacted at sales (at) westsideland (dot) com and information can be obtained from www.westsideland.com

So, you have found the perfect piece of vacant land – quiet street, panoramic views, excellent school district, close to work – and you are planning to build the house that you have always dreamed about. How certain are you that this pile of dirt can deliver? At the risk of sounding repetitive, I cannot emphasize enough the importance of ‘knowing your dirt’ so-to-speak. Far too many people have purchased land only to find out after escrow has closed that what they intended to build, is actually an impossible build or simply put, not permitted.

Whether you are looking in Santa Monica, Los Angeles, Glendale, Beverly Hills or any of the other municipalities within the region, there will be a litany of questions you will want answered before you buy. You will need to familiarize yourself with the property’s Zoning Designation, Lot Area, Property Lines, Setback Requirements, Easements and FAR (floor area ratio) to determine if there will be enough dirt to even locate a building footprint. In addition, obtaining a property survey which includes the site contours will be crucial to navigating the intricacies of building height restrictions. You will need to take into consideration the Baseline Hillside Ordinance, www.baselinehillsideordinance.com the Coastal Commission and the Mulholland Scenic Parkway Planner. Unfortunately, the list goes on and on. Because the success or failure of your dream home depends on the strategic negotiation between these and other requirements, you will need an experienced advisor to shepherd you through the process.

An architect possesses the unique knowledge and leadership to assemble and guide your team from the moment you become interested in the dirt, until you move into your dream home. An architect has relationships in place with consultants, contractors, and city agencies to obtain rapid and accurate information regarding the potentials and pitfalls surrounding any given building project. In addition to the role as information clearing house, the architect is specifically trained to convert different and sometimes conflicting information into a three-dimensional diagram to represent the restrictions imposed upon the ‘dirt’ in question. Keep in mind that once the property is determined ‘build-able’, the architect is there to advise you on translating the potential of your property into the home you have always dreamed about.

I have been a realtor and real estate land specialist in Los Angeles for the past 15 years, creating opportunities for land-owners and Buyers by brokering vacant land throughout the Greater Los Angeles area. I can be contacted at sales (at) westsideland (dot) com and information can be obtained from www.westsideland.com

Summertime! A time to execute the meandering and wandering that you have been planning. It is peak season to be out and about and taking in the season of the sun. After all, should a balmy summer’s night not be savored with good company?

While summer is tops for warmer days, leisure and relaxation, taking time out to map your future is always a very wise move. In planning for what is ahead, you can give yourself (and loved ones) the gift of comfort and security for years to come.

Land Banking is just one of those smart ways to plan for the future. Strategically located raw land hardly requires maintenance in order for its value to increase. Historically, land appreciates over time and may be a very good speculative investment for those who wish to purchase and hold it for a number of years. And since land is a fixed commodity, its value continues to rise with population increases in the area. Detroit can build more cars, Wall Street can float more stock issues, but there is only so much land.

Whether you are new to the concept of Land Banking or a seasoned speculative investor, an individual or group considering raw land as part of your portfolio, owning the right piece of dirt can provide a handsome return on one’s investment.

I have been a realtor and real estate land specialist in Los Angeles for the past 15 years, creating opportunities for land-owners and Buyers by brokering vacant land throughout the Greater Los Angeles area. I can be contacted at sales (at) westsideland (dot) com and information can be obtained from www.westsideland.com

There is no magic to processing land use applications with a City or County government, but an expediter who has a broad level of knowledge and skill that most land professionals do not have, is the ‘go-to-person’ who should be consulted for assistance with such applications.

A competent expediter knows and understands the laws that govern the type of land use applications their clients need, and a good expediter will act as a consultant, often finding better, faster and less expensive ways to reach their client’s goals. While most City Staff at public counters really want to assist, they are often less experienced personnel and their knowledge is confined to only their particular job. They do not have the range of knowledge needed to provide clients with options and a clear overall picture of the intended build. For example, the Planning Staff will understand the Planning and Zoning Code procedures, but may not fully understand issues with other City Agencies.

A good expediter can and should act as the clients’ advocate, speaking at community meetings and before City officials who will actually make the final decisions. An expediter who only does the paperwork is not providing the best service a client needs to succeed. Technical aspects of filing paperwork, while important, are not the most crucial aspect to getting the necessary approvals.

While no expediter can guarantee the results of a particular case, good ones will be able to give an honest evaluation of the likelihood of success or failure, or offer possible alternatives, and most importantly, greatly increase a client’s chance of success.

I have been a realtor and real estate land specialist in Los Angeles for the past 15 years, creating opportunities for land-owners and Buyers by brokering vacant land throughout the Greater Los Angeles area. I can be contacted at sales (at) westsideland (dot) com and information can be obtained from www.westsideland.com

The Baseline Hillside Ordinance (BHO) www.baselinehillsideordinance.com is a significant amendment to the Los Angeles Municipal Code which establishes new regulations for single family residential zoned properties in hillside areas. The BHO was adopted on March 30, 2011 and went into effect on May 9, 2011. The application of these stringent regulations is contingent upon various factors specific to each individual property and are thus, assessed on a property-by-property basis.

However, the following serves to summarize some of the key constraints imposed by this new ordinance. Owners and potential owners of residential properties in hillside areas, should seek professional advice pertaining to this ordinance before buying, selling, remodeling or building on their properties.

Floor Area Ratio (FAR)

The Floor Area Ratio (FAR) is the ratio between the total floor area of all buildings on a lot and the total area of the lot. The BHO now gives each zone a specific base FAR, thereby establishing a specific scale for each zone. Proposed homes would have to adhere to size limits computed by a formula that gradually reduces the FAR based on the steepness of the lot. Bonuses are granted for, certain design features which minimize massing and are green. Per new BHO, FARs are determined based upon zoning.

Slope Band Method

Some of the criteria for determining the allowed size of a structure includes the size, zoning classification and the steepness of slopes on the subject property. With each property having its own unique FAR starting point, the FAR is gradually reduced for steeper portions of the lot using identified percentages known as Slope Bands. In order to ascertain the allowed FAR for a property, a topographical survey and slope analysis prepared by a licensed surveyor is required.

Additions to Existing Structures

Existing structures are permitted a cumulative addition of no more than 500 square feet regardless of its conformance to the FAR limits. The addition must comply with the setback requirements and proposed height and grading regulations. Accordingly, the Zoning Administrator authority was also increased from 750 to 1,000 square feet.

Height and Story

Viewed as a problem in many Los Angeles communities, pre-BHO current regulations allowed large and tall box-like structures which the adopted BHO now restrict. BHO regulations discourage the terracing of buildings along slopes and prevent a building from becoming too large by calculating the overall height within an envelope height.

Grading

The BHO’s grading limit utilizes a base quantity of grading (500 cubic yards), plus a percentage of the lot size (5%), with an overall cap based on the zone. In addition, the BHO calls for no grading permits to be issued until a building permit for the project has been approved.

Note, that the full variance procedure under LAMC Section 12.27 is still available, even after the BHO. This means that a variance will be considered by the City if the applicant can meet the standards required.

I have been a realtor and real estate land specialist in Los Angeles for the past 15 years, creating opportunities for land-owners and Buyers by brokering vacant land throughout the Greater Los Angeles area. I can be contacted at sales (at) westsideland(dot) com and information can be obtained from www.westsideland.com

This rambling, approx: 2.5 acres (vacant land), Laurel Canyon Estate rises up unmortated stone steps, embellished with colorful tile, to seating nooks built into the hillside and rock caves large enough to sleep in.

With its sprawling, park-like grounds, it is truly magical and gives the impression of stepping into what one could imagine to be a forest where Pan, the God of Fields and Woods in Greek Mythology, frolicked around.

Once the site of Frank Zappa’s legendary ‘Log Cabin’, steeped in Rock and Roll history and home to Rock royalty, this property was the premier gathering place of the 1960′s Los Angeles Rock and Roll Scene.

I have been a realtor and real estate land specialist in Los Angeles for the past 15 years, creating opportunities for land-owners and Buyers by brokering vacant land throughout the Greater Los Angeles area. I can be contacted at sales (at) westsideland (dot) com and information can be obtained from www.westsideland.com

Appraisal: An appraisal is an assessment or estimation of the value of the subject property, with respect to its worth.

Land Appraisals: Selling land, begs the question, why does a Seller need a land appraisal before putting it on the market for sale? He/she needs, to appraise the land for many reasons with a qualified Land Appraiser. Sellers have confusing ideas as to what their land is really worth, especially when it comes to valuing same, as comparables are often few and far between. It is important to note, that in appraising land, city ordinances, city zoning, and plotted easement reports amongst others, all have to be taken into consideration to find true land value. Without an appraisal, Sellers may list their land for sale and subsequently become very disappointed in the listing agent when they get no attractive results, except ‘low ball’ offers and their property languishes on the market for months and months. The agent, who has the listing will spend time and incur advertising costs, including showing the property, all to no avail.

Restricted Report: By obtaining a Restricted Report aka Estimated Value Report, Sellers, Buyers and Agents will get a more realistic value of the subject property. This report is summarized, costs less than a full report and saves all parties time and money. This report is for internal use only and cannot be used by a Buyer for lender purposes.

Regular Appraisal Report: The regular appraisal report is a more complete report, designed to stand up to audits, which can be used by the Buyer for lender purposes but will cost more than a Restricted Report.

Since the 2008 collapse of the Real Estate market, it is my opinion that raw land has lost almost 30% to 35% of it value, and with the new City of Los Angeles’ Baseline Hillside Ordinance (BHO) www.baselinehillsideordinance.com which comes into effect in April 2011, land in residential hillside areas will lose even more value. Moreover, Banks are not lending on the purchase or raw residential land and those that did in the past, have at the present time, completely ceased making all cash land sales the best option for both Sellers and Buyers.

I have been a realtor and real estate land specialist in Los Angeles for the past 15 years, creating opportunities for land-owners and Buyers by brokering vacant land throughout the Greater Los Angeles area. I can be contacted at sales (at) westsideland (dot) com and information can be obtained from www.westsideland.com

It is my opinion that before one purchases any property, one must, at least, obtain, a Boundary survey performed by a qualified surveyor, to ensure complete knowledge as to, what one is purchasing. In this connection, it should be noted that there, are various kinds of surveys, that a surveyor can offer.

Boundary Survey: This is a survey, in which, boundaries are set at, or near the corners of the property. Should one have concerns that a neighbor is building ‘something’ that may encroach on one’s property, or should one want to build a fence or wall, one will need a Boundary survey to establish the exact location of the property line.

Topography Survey aka Topo: A Topo survey is one, which shows structures, trees, fences and or driveways on a map with dimensions to the property line. If one is not sure whether one’s neighbor owns the fence or wall, one should call for a Topo survey which will determine the exact location of the fence or wall in relation to the property line.

Architectural Survey: This survey is comprehensive and will show on a map almost everything on one’s property including boundary stakes. If one is planning to remodel or build a new home, one will need an Architectural survey. This survey will locate and measure everything on one’s property, including elevations,(as related to sea level) major structures, hardscape surfaces such as walkways, landings, and driveways, all shown accurately on a map.

I have been a realtor and real estate land specialist in Los Angeles for the past 15 years, creating opportunities for land-owners and Buyers by brokering vacant land throughout the Greater Los Angeles area. I can be contacted at sales (at) westsideland (dot) com and information can be obtained from www.westsideland.com