What Is Entitlement In Real Estate?

What Is Entitlement In Real Estate?
by Jerome Foster - November 11, 2021

An entitlements file is an important set of documents that need to be submitted for the right land development. The term "entitlements" does not refer to anyone's specific approval, but rather all approvals necessary based on where and how you want to build your project in order to take full advantage of its potential revenue stream or profit margin rate. There is a variety of different city, county, and state departments that might have to get approvals for pieces in real estate development.

The general plan sets aside future land for residential, commercial, and open space areas within the city. This means that in 20 years from now you could have a house or business on these properties depending on how they are being used currently which provides an incentive to developers who want their projects included in this type of development.

A county's/city’s general plans identify specific desired outcomes with regards to what types of buildings should be built whereby identifying specific zoning laws then specifying height limits etc, It tells them when certain things can happen-now.

Examples of Entitlement

  • Zoning is a system in which properties are divided into different zones to regulate how they may be used. If you want your property rezoned for an intended use, it's important that this process isn't overlooked before starting any major construction or development work on site - especially if there has been no recent change of ownership.
  • When a zoning variance is granted, the landowner receives a waiver to use their property in accordance with an exception from certain regulations. Variance requests might include adding on-street parking or fencing along property lines - these variances can make it easier for people living near you.
  • Use permits are like zoning variances. They give the landowner an exception to use their property for something other than what they're allowed under current ordinances, so long as it's deemed necessary or desirable by government authorities! For example: if you want commercial activity in residential areas (which would not typically be legal), then your project might receive permission through this type of permit--just make sure there isn't already someone else doing business on that same stretch first.
  • If utilities are not already installed on the site, you must get approval before they can be added. Some of your land may need to be donated for proper utility installation and access from both a city-approved contractor as well as an electric company who will provide service where needed in order to avoid future complications with billing or lack thereof when one provider pulls out unexpectedly due to financial troubles (which has happened more than once).
  • Landscaping is an important part of any development project. If you’re planning on working with landscapers, be sure they have all the necessary approvals for their work before starting anything.

The process of securing government approvals to develop a property is often long and arduous. The developer must first get authorization from their local authorities, then submit an application for review in order to continue with construction or acquisition on-site; if granted this permit after approval by relevant bodies (not always guaranteed), they are able to do what was proposed - build-out plans approved earlier.

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