FAQ

Frequently Asked Questions for Lot Subdivision and Sale

Do you only operate in the Portland Metropolitain area?

We proudly serve clients across the entire state of Oregon, and we're thrilled to be able to offer our assistance to every Oregonian in need.

Does this new legislation apply to all residential properties?

No, not all residential properties will benefit from this new legislation. Each municipality has unique environmental, density, and design overlays, among other constraints. Latent Services specializes in navigating these complexities in an effort to successfully achieve lot division.

How does this process work?

HB2001 and SB458 aim to address Oregon's housing shortage by allowing increased density. By superseding municipal codes with state regulations, these laws enable you to pursue division or construction opportunities that were previously unavailable.

At Latent Services, we oversee the entire transaction process, guiding you from start to finish. Leveraging our extensive network of experienced professionals in Real Estate, Title, Appraisal and surveying, we navigate bureaucratic hurdles with ease, ensuring a seamless experience for you.

How much effort will I have to make?

Your responsibilities will primarily involve signing necessary paperwork at various intervals throughout the process. Additionally, you may occasionally be required to issue payments for completed milestones along the way

Is this legally permissible?

This opportunity is enabled by Oregon law (see links page). Transactions will be finalized and recorded through local Title Companies.

Do these new laws have an expiration date?

This opportunity to unlock hidden value from your property has never been available before. While these new laws do not have an expiration date, like all laws, they change over time. We don't believe there’s a rush, but this may be an opportunity with an expiration date.

What will my new lot be worth?

Initial property value estimates can be found on various real estate websites. However, upon subdividing the lot and deciding to sell, we will conduct a thorough market analysis to determine the property's value and list it accordingly.

Will subdividing my property decrease my overall value?

While reducing the size of your existing lot may affect its value, in most cases, the creation of the new lot tends to offset this impact. Based on our experience, we estimate that the combined value of your current home on a smaller lot and the newly created lot will likely exceed the value of your current home alone. Granted, this is not always the case.

Can I take advantage of this opportunity when I have a mortgage on my property?

Yes, it's possible, but you'll need to coordinate with your lender to approve a partial mortgage release, typically granted once the loan reaches a specific balance.

Will you sell my new lot?

We're thrilled to accompany you on this journey until its successful completion, leveraging our expertise in land sales. Additionally, our extensive network includes numerous developers actively seeking lots. However, should you opt to retain your lot as an asset and continue enjoying its benefits, rest assured, we're here to support you regardless of your decision.

Can I sell my lot and use the money to buy an investment property or second home?

Certainly, we'd be delighted to assist in facilitating your next purchase and collaborate with agents licensed in both Oregon and Washington.

Can you build a new home for me on the newly created lot?

Absolutely! We collaborate with experienced and thoroughly vetted developers to ensure top-notch construction quality, all while offering competitive pricing.

Can I move to the new home? Will you sell my old house?

Definitely! If you adore the neighborhood but are fatigued by the idiosyncrasies of older homes, we collaborate with experienced Realtors and Mortgage Brokers to ensure a smooth and seamless transaction.

How long does this process take?

The most unpredictable aspect of this process lies in the time your lender and municipality will take to process your request. The other components of the process are more predictable and follow a schedule. It is rare for the process to take longer than 3 months, although it may occasionally extend beyond that timeframe.

Please note that this law was recently adopted by lenders and municipalities, and as a result, standard operating procedures for navigating this new law are not yet well-established. Each municipality has interpreted these new laws differently, and some have added their own unique requirements.

How are expenses managed throughout the process?

Clients make an initial deposit with a local Title Company to cover the estimated costs. All expenses will be managed through the Title Companies Client Trust Account.

What are my out-of-pocket expenses for this service?

Your out-of-pocket expenses are minimal when compared to the potential profit. Standard City, County and service fees typically range from $20,000 to $40,000 to complete the process, depending on the municipality.

How much can I expect to make?

While property values vary due to several factors, here’s an example of what’s possible with our service:

Sample address: 101 S Center St. Oregon City
New lot value : $295,000
Lot division expense: $23,000
Sales commission of new lot: $8,000
Net profit: $264,000

Sample address: 1627 Killarney Dr, West Linn
New lot value: $249,000
Lot division expense: $37,000
Sales commission of new lot: $7,000
Net profit: $205,000

Sample address: 15592 SW Waluga Dr, Lake Oswego
New lot value: $519,000
Lot division expense: $27,000
Sales commission of new lot: $13,000
Net profit: $479,000

What’s the next step?

Call for a free consultation, or simply fill out the questionnaire ( here ) to see if you can benefit from this opportunity.