The short answer is definitely not cheap nor easy as I recently found out. My client had a five acre lot in Apache Junction (Pinal County) zoned General Rural he was interested in selling. The seller was not interested in putting a lot of money into the property. The question was would it be better to split the lot and sell smaller lots or sell the entire five-acre parcel. I called Pinal County and they said to call Apache Junction since the lot was located in Apache Junction. Apache Junction has a complicated lot split process. The minimum lot split size is 1.25 acres per lot. However, if one owner tries to split a lot four ways then it is considered a subdivision and has to follow all the subdivision procedures. If the lot split is only three ways (called a simple lot split) then the cost and process is much easier and cheaper. I decided to research both types of lot splits.
Subdivision Lot Split – The first step for a subdivision is to have an engineer prepare a preliminary plat that includes grading and drainage, utility design, road design, etc. The engineering cost to do this will be very high (I didn’t bother to get an estimate) and in addition there are city fees of $1,575 plus $21 per lot. Once the preliminary plat is approved then there has to be a final plat. The cost for a surveyor to do the final plat is estimated at $3,330. There are more city fees of another $1,575 + $21 per lot. Total so far was $6,648 plus engineering costs and did not include the cost for the utilities. This was already way too complicated and expensive for the seller to even consider so we abandoned the subdivision split.
Simple Lot Split – The minimum lot split size is still 1.25 acres per lot. A simple lot split requires an owner to have the property surveyed, have the survey recorded and then have the individual lots deeded to the owner. If the lot can be split again then there has to be a second survey, the survey is recorded and the individual lots deeded to the owner. The catch is it has to be going to a completely unrelated person. This sounded a lot easier and cheaper than a subdivision split. The seller decided to have a survey to identify the boundary markers because the property had been in the family since the 1940’s. He was concerned neighbors may have built fences, driveways or buildings on his property. He also wanted to make sure the property had proper ingress and egress and confirm the easements. The seller opted to have the first lot split done as part of the boundary survey as he felt it would make the property more attractive to a buyer. The survey costs was the same so there was no additional expense for the seller.
In the meantime, I researched the costs to connect to the sewer, electric and water. The cost to connect to sewer is $3,825 for the permit and $4,000 to $5,000 to run the physical connection for a total of $8,825 per house. SRP charges $3,500 per house for a 300AMP meter plus the cost for any additional lines required. Arizona Water Company charges an off-site facilities fee of $1,500. To install one service connection is $495 and 1 meter is $155 for a total of $650 plus the $1,500 for a total of $2,150. There may be additional charges depending on the location of the property. Once the plans are drawn for the house then there will be building permits and inspections required.
The simple lot split is the cheapest and easiest way to split a small parcel if the property is located in Apache Junction. For the small builder this is great information to have as there is still a lot of vacant land in Apache Junction. This area is booming since the addition of the 202 Red Mountain Freeway made it more accessible.