Real Estate Principles Study Set 1

Business

Quiz 23 :
Development

Quiz 23 :
Development

The process of obtaining permitting is the riskiest stage of the process because of the following reasons: • Public hearings that may resolve to kill the project. • Substantial amount of time and cost. • Community oppositions and tree-huggers may cause delays or force the developer to terminate the project. Permitting is the part of the process that makes the community aware of the project and gives that community the opportunity to voice concerns and ask questions about the impact that the project represents.

The correct answer is option a. Establish site control. There are a couple of ways to establish site control and they include follows: • Purchase of land. • Land-lease agreement. In order to ensure exclusive rights to develop, first, we must establish site control. Therefore, option a. is correct and remaining options are incorrect as they are not first steps.

A developer may attempt to reduce the risks associated with the permitting process in many ways including: • The developer should keep the local regulatory authorities informed throughout the development process. • The developer should establish a positive relationship with the local regulatory authorities. • The developer can make provisions for buffering the surrounding land from the proposed project. • The developer may offer to provide an improvement, such as a park, that will benefit the local neighborhood. • The developer should to negotiate with the land use authorities and neighborhood owners groups.