A platted subdivision is a parcel of land that has been legally divided into smaller, individually described lots through an official survey and recording process. The plat - a scaled map filed with the county - establishes each lot's boundaries, dimensions, easements, and access to public roads, making the lots legally transferable and ready for development or sale.
If you are a developer, investor, or landowner considering a subdivision project, understanding the platting process is one of the first steps toward turning raw land into a profitable development. This guide covers everything from the legal requirements and costs to the timeline and financing options available for platted subdivisions.
Clearhouse Lending specializes in horizontal construction loans and land development financing for subdivision projects across the country. If you are planning a subdivision and need financing, contact our team to discuss your project.
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What Is a Platted Subdivision?
A platted subdivision is a tract of land that has been officially surveyed, divided into individual lots, and recorded with the local county recorder's office. The term "platted" refers to the creation of a plat map - a detailed, scaled drawing that shows each lot's boundaries, dimensions, street layouts, utility easements, and public dedications such as parks or drainage areas.
According to Quicken Loans, a plat map is a surveyed map of a property that identifies boundaries, lot numbers, street names, and easement locations. Once recorded, the plat becomes part of the public record and serves as the legal framework for all future property transactions within the subdivision.
The platting process is governed by local and state regulations, meaning requirements vary between jurisdictions. However, the core purpose remains the same everywhere: platting transforms a single parcel of raw or undeveloped land into multiple legally distinct lots that can be individually sold, financed, and developed.
For developers pursuing residential or mixed-use subdivision projects, platting is not optional. Without a recorded plat, individual lots cannot receive separate legal descriptions, which means they cannot be conveyed to buyers or used as collateral for construction loans. This is why platting is one of the earliest and most critical steps in any ground-up development project.
What Is the Difference Between Platting and Subdividing?
Platting and subdividing are closely related terms that are often used interchangeably, but they describe slightly different aspects of the same process. Subdividing refers to the act of dividing a larger parcel of land into smaller lots. Platting refers to the formal survey, mapping, and recording process that makes that division legally recognized.
Think of it this way: subdividing is the concept, and platting is the execution. You cannot legally subdivide land without going through the platting process in most jurisdictions. The Texas Municipal League explains that platting is synonymous with subdivision in many state statutes, and both terms appear in the same enabling legislation.
There are also distinctions between different types of plats that developers should understand. A preliminary plat is the initial proposal submitted to the local planning department for review. It shows the proposed lot layout, street design, and utility plans. A final plat is the refined version that incorporates all required changes and is ultimately recorded with the county. Some jurisdictions also allow short plats (or minor subdivisions) for projects that create fewer than a certain number of lots - typically four or five - and these follow a streamlined review process.
The distinction between major and minor subdivisions matters significantly for project timelines and costs. According to Poly Surveying, a minor subdivision often involves splitting a single lot into two or three parcels, while a major subdivision involves creating multiple lots along with new streets, utilities, and other infrastructure. Major subdivisions require more extensive review and public hearings.
What Are the Steps in the Subdivision Platting Process?
The subdivision platting process follows a structured sequence of steps that typically includes pre-application research, design and engineering, government review, and final recording. While specific requirements vary by jurisdiction, the general workflow is consistent across most cities and counties in the United States.
Step 1: Feasibility and Pre-Application Research. Before investing in surveys and engineering, developers should research local zoning ordinances, subdivision regulations, and comprehensive plans. This phase includes verifying that the proposed use is allowed under current zoning, understanding minimum lot sizes, and identifying any environmental constraints. Many jurisdictions offer pre-application meetings where developers can discuss their plans with planning staff informally.
Step 2: Preliminary Plat Preparation. A licensed surveyor and civil engineer prepare a preliminary plat showing the proposed lot layout, street design, drainage plan, and utility routing. This document is the centerpiece of the formal application submitted to the local planning department.
Step 3: Application and Agency Review. The developer submits the preliminary plat along with required application fees and supporting documents. Multiple agencies - including public works, fire, utilities, and environmental departments - review the proposal. This is often the longest phase, lasting 30 to 90 days in many jurisdictions.
Step 4: Public Hearing and Approval. For major subdivisions, most jurisdictions require at least one public hearing before the planning commission or city council. Neighbors and stakeholders are notified and given the opportunity to comment. The reviewing body may approve, deny, or approve with conditions.
Step 5: Construction of Improvements. Once the preliminary plat is approved, the developer constructs the required infrastructure, including roads, stormwater systems, water lines, sewer connections, and utilities. This is the horizontal construction phase, and it is typically financed with a land development or horizontal construction loan. Clearhouse Lending offers horizontal construction financing designed specifically for this stage of the development process.
Step 6: Final Plat and Recording. After improvements are completed (or bonded), the developer submits a final plat for approval. Once approved, the plat is recorded with the county recorder's office, and individual lots receive their own legal descriptions. At this point, lots can be sold or used as collateral for vertical construction loans.
If you are preparing to move through this process and need financing, reach out to our lending advisors to get pre-qualified.
How Much Does It Cost to Plat a Subdivision?
The total cost to plat a subdivision typically ranges from $10,000 to $100,000 or more, depending on the number of lots, site complexity, jurisdiction, and required infrastructure improvements. Smaller projects with two to four lots may cost as little as $5,000 to $15,000, while larger subdivisions with dozens of lots and extensive infrastructure requirements can reach well into six figures.
According to HomeGuide, a boundary survey alone costs $300 to $1,500, while a full subdivision survey ranges from $1,000 to $5,000 depending on the property size and complexity. CostOwl reports that local government application and review fees typically run between $500 and $10,000, depending on the jurisdiction and number of lots.
Engineering and design fees represent one of the largest cost categories. Civil engineering for site plans, grading design, stormwater management, and utility layouts typically costs $15,000 to $50,000 for subdivisions of 10 to 50 lots. Legal fees for preparing covenants, conditions, and restrictions (CC&Rs) and other required documents add another $3,000 to $10,000.
The most significant cost, however, is infrastructure construction. Roads, utilities, stormwater systems, and other horizontal improvements can cost $20,000 to $80,000 per lot depending on site conditions and local requirements. These costs are separate from the platting process itself but are required before the final plat can be recorded in many jurisdictions. Use our commercial mortgage calculator to estimate financing costs for your subdivision project.
What Information Does a Subdivision Plat Map Include?
A subdivision plat map is a detailed, scaled drawing that serves as the official legal record of a subdivision. It must include all the information necessary to precisely identify, locate, and describe every lot, street, easement, and dedication within the subdivision. Plat maps are prepared by licensed surveyors and must meet standards set by state statute and local ordinance.
According to CourthouseDirect, a standard subdivision plat map includes the following elements:
Lot and Block Identification. Every lot is assigned a unique number within its block, and every block is numbered within the subdivision. These identifiers become part of each lot's legal description (for example, "Lot 5, Block 3, Oak Ridge Subdivision").
Boundary Dimensions and Bearings. Each lot boundary is described with precise distances (in feet or meters) and bearings (compass directions), allowing the lot to be physically located and staked on the ground.
Street and Right-of-Way Layout. The plat shows all public and private streets, including their names, widths, and rights-of-way. Street layout is critical because every lot must have legal access to a public road.
Easements. Utility easements, drainage easements, and access easements are shown with their widths and locations. These restrict what the lot owner can build in those areas while ensuring utility companies and the public can access infrastructure.
Dedications and Common Areas. Any land being dedicated to the public - such as parks, open spaces, or detention areas - is identified on the plat. Common areas retained by a homeowners association are also shown.
Surveyor Certification and Government Approval. The plat includes the surveyor's seal and signature, along with signature blocks for all required government approvals (planning commission, city council, county recorder).
How Long Does the Platting Process Take?
The subdivision platting process typically takes 3 to 18 months from initial application to final plat recording, with the wide range reflecting differences in project complexity, jurisdiction, and whether infrastructure construction must be completed before recording.
For minor subdivisions (two to four lots) with no new infrastructure requirements, the process can move relatively quickly. According to the City of McKinney, Texas, their platting process for simple subdivisions takes approximately 30 to 60 days from application to approval. The City of Anna, Texas reports a similar timeline for straightforward plats.
Major subdivisions with dozens of lots, new streets, and utility extensions take considerably longer. The pre-application research and engineering design phase alone can take 2 to 4 months. Agency review and public hearings add another 2 to 4 months. Infrastructure construction - the longest phase for most projects - can take 4 to 12 months depending on the scope of work and weather conditions.
Several factors can extend the timeline beyond typical expectations. Environmental reviews (such as wetland delineations or endangered species assessments) can add 2 to 6 months. Rezoning requirements, if the property is not currently zoned for the intended use, can add 3 to 6 months. Jurisdictions with heavy application backlogs may have longer review periods, and required revisions to the plat can reset the review clock.
For developers, understanding the timeline is critical for financial planning. Carrying costs on the land - including interest payments on acquisition loans, property taxes, and insurance - continue accumulating throughout the platting process. This is why working with an experienced land acquisition lender and planning realistic timelines from the start is so important.
What Are the Financing Implications of Platting?
Platting has direct and significant implications for how a development project is financed. The platting stage determines when lots become individually financeable, when collateral can be released, and how lenders evaluate risk throughout the development process.
Before a plat is recorded, the entire tract is a single parcel. Lenders treat unplatted land as higher-risk collateral because it has fewer exit options - it can only be sold as a whole or under contract for future subdivision. Once the plat is recorded, individual lots exist as separate legal entities, each with its own legal description that can serve as standalone collateral.
Land Acquisition and Development Loans. Most subdivision projects begin with a land acquisition and development (A&D) loan that covers the purchase of the raw land and the cost of infrastructure improvements. These loans typically cover 50% to 75% of total project costs and require 25% to 30% equity from the borrower, according to Builder Finance Inc.. Interest rates on A&D loans are generally higher than conventional construction loans because the project is in its earliest and riskiest phase.
Lot Release Provisions. A key feature of subdivision development loans is the lot release clause, which allows the developer to release individual lots from the blanket loan as they are sold. The release price is typically 110% to 125% of the per-lot loan allocation, ensuring the lender's collateral coverage remains adequate as lots are sold off. Without a recorded plat, lot releases are not possible.
Transition to Vertical Construction. Once lots are platted and infrastructure is complete, the developer (or a homebuilder purchasing individual lots) can obtain vertical construction loans to build homes or commercial structures on individual lots. This transition from horizontal to vertical financing is one of the key milestones in any subdivision project. Learn more about how these loan types differ in our guide to horizontal vs. vertical construction loans.
Clearhouse Lending provides financing for every stage of the subdivision development process, from land acquisition through horizontal and vertical construction. Contact us today to discuss your project and explore your financing options.
How Does Platting Affect Property Values and Development Potential?
Platting transforms raw land into individually marketable lots, which almost always increases the total value of the property compared to its value as a single unplatted parcel. This value creation is the fundamental economic driver behind subdivision development.
According to Global Valuation, the subdivision development approach is a widely used appraisal method for valuing raw land based on the potential cash flow from selling individually platted lots. Appraisers estimate the value of each finished lot, subtract all development costs and an appropriate profit margin, and discount the resulting cash flow back to present value.
Value Uplift From Platting. Raw acreage might sell for $30,000 to $100,000 per acre depending on location and entitlements. After platting and infrastructure installation, individual lots in the same area might sell for $50,000 to $200,000 each - with four to six or more lots per acre in many residential subdivisions. The total value of the platted lots frequently exceeds the raw land value by 200% to 400%, although development costs and risk must be factored into the developer's return calculation.
Market Demand and Absorption. Platting alone does not guarantee value creation. The lots must be in a market where demand supports the projected sale prices and absorption rate. Lenders carefully evaluate local demographics, employment growth, housing starts, and comparable lot sales before approving subdivision financing. Developers should conduct thorough market studies before committing to the platting process.
Entitlements and Zoning. A platted subdivision that includes proper zoning, entitlements, and approved construction plans is significantly more valuable than one with just a recorded plat. To learn more about the entitlement process and how it interacts with platting, see our guide on real estate entitlements and zoning.
Long-Term Development Planning. For phased developments, the initial plat may cover only the first phase, with subsequent phases platted as market conditions warrant. This approach reduces upfront costs and allows the developer to adjust lot sizes, densities, and product types based on buyer feedback from earlier phases. Many successful subdivision developers plan two to five phases, with each phase containing 20 to 50 lots, and our commercial bridge loan calculator can help you model financing for phased approaches.
Frequently Asked Questions About Platted Subdivisions
What is the difference between a platted and unplatted lot?
A platted lot has been formally surveyed, assigned a unique legal description, and recorded on a plat map with the county recorder's office. An unplatted lot is part of a larger parcel that has not been officially subdivided. Platted lots can be individually sold, taxed, and financed, while unplatted portions of a larger tract typically cannot. Most municipalities require platting before issuing building permits.
Can I build on unplatted land?
In most jurisdictions, you cannot obtain a building permit for unplatted land within city limits or areas subject to subdivision regulations. However, some rural areas and counties have exemptions for agricultural or large-acreage tracts. You should check with your local planning department to determine whether platting is required before construction.
How much does a subdivision plat survey cost?
A subdivision plat survey typically costs $1,000 to $5,000 for the survey work itself, according to HomeGuide. The total platting cost - including engineering, application fees, and legal documents - ranges from $10,000 to $100,000 or more depending on the number of lots and complexity. Infrastructure construction costs are additional and can range from $20,000 to $80,000 per lot.
How long does it take to get a subdivision plat approved?
Approval timelines range from 30 days for simple minor subdivisions to 12 months or more for complex major subdivisions. The timeline depends on the number of lots, required infrastructure, environmental reviews, rezoning needs, and the local jurisdiction's review capacity. Infrastructure construction can add another 4 to 12 months after plat approval.
What happens after a subdivision plat is recorded?
Once a plat is recorded, the individual lots receive their own legal descriptions and can be independently sold, transferred, or used as collateral for loans. The developer can begin selling finished lots to builders or end users, obtain vertical construction financing for individual lots, and release lots from the blanket development loan. Property taxes are typically reassessed to reflect individual lot values.
Do I need a platted subdivision to get a construction loan?
For most subdivision development projects, yes. Lenders require a recorded plat before they will finance individual lot construction because the plat creates the separate legal parcels that serve as loan collateral. However, horizontal construction loans and land development loans can be obtained before the final plat is recorded, as these loans finance the infrastructure work needed to reach the platting milestone. If you are planning a subdivision development, learn how Clearhouse Lending can help you structure your financing from land acquisition through completed homes.