Any tips on doing due diligence on a vacant raw land in Oakland?

Question

How are you all doing?  Any land experts here?   Can I get some help on how to perform a due diligence on a vacant parcel? Some basic facts about this land:

- located in Oakland CA

- it was subdivided in 1991

- there are homes on each side of the parcel

- the land is unentitled (I don't even know what this means haha, I'm a newbie to land)

- I called utilities, there is water meter already, gas and electricity need to be installed

- the land is on a hill, then flat on top for future house

Any input will be helpful, I have 10 days to do due diligence before I can back out of the contract. Please help!

Thank you!!

Barry B. · Answer

As pointed out above, the foundation on a sloping lot can be expensive. Oakland does not allow septic anymore, if the lot is down slope you will have to spend around $50k +/- to take a pipe to connect a sewer tank below the lot to the closest point to the city sewer line. All doable, just add to your project costs.

Obviously check the zoning, some lots are single family, a few allow up to 4 units. Easiest way to check all feasibility is to just walk into the Oakland city planners office, give them the address and ask them if there are any restrictions on the lot. If you already have a plan on what you want to build, you can discuss it with them. They do not care if you own the lot or not. I am not sure what you meant by it was subdivided in 1991? Is it the left over from a larger lot? There may be additional access to the road restrictions (max access to a lot from the street is 18') in the case and parking issues (you have to build one spot for every bedroom you build) but the city will tell you that too.

As far I know unentitled only means there have never been any plans applied for or approved for the lot. There are a few lots classified as "creek" lots, if a seasonal or live creek is close by, you cannot build within 25' from it, check for that too.

Best of luck.

Barry B. · Answer

Also check if there are any trees that you might need to cut for your development. Can be tricky getting a permit depending on the type of tree. I think the height restriction is 34', so you should be able to imagine whose view you could be blocking. That part is simpler if you are uphill. Some streets, like where I live, have a view ordinance. Which means you cannot block the view from street and have to build your driveway sloping down to your lot such that no view is blocked, just more $$$ Might want to check that too.

Robert Marston · Answer

@Vicky Gu unentitled land means that the land use may not be approved and there are likely no plans for the utility placement/easements. There is a permitting process for getting land approved to be built up and if the property is unentitled then that process has not taken place!

Having homes on either side means the utilities are at lease close by, but if you are on a big hill the cost to excavate and places sewer/gas may be pretty high. If you are getting a lot up in the Oakland hills on a tiny street keep in mind the logistics of getting machinery up there to develop. Some of the roads in the hills cannot accommodate large trailers!

Research the zoning so you know what can be built. Research setback requirements as well to makes sure your plan fits in the space available.

Was there a Land Survey? Soil Tests? Both would be close to necessary IMO!

Account Closed · Answer

Great advice! Thanks for sharing.

Justin Tahilramani · Answer

@Vicky Gu - You need to provide a little more information. What are you looking to do with the land? Are you thinking you might build some day? If so - how is the land zoned? Are there any restrictive covenants that dictate what you can and cant build? What about sewer? Is it city or septic?

Is the hill top large enough to accommodate the house? If not, developing on a slope is going to be $$$.

Chris Mason · Answer

FYI @Vicky Yu, I had one a few years ago where our home was on land carved out of a larger parcel, but no title company would give us a preliminary title report only showing one APN (still unclear on why they took issue with that). With multiple APNs on the paperwork, none of the good interest rate jumbo 30 YF lenders would go for it.

It was incredibly frustrating to show multiple jumbo lenders all the notarized, recorded, filed, etc, paperwork/maps/surveys/prop_tax_docs/etc showing the parcel split was unambiguously complete and a done deal years prior, and them to say "no, this doesn't fit in our little box unless you can get a prelim with only 1 APN, loan denied, we don't care about 25% down, 36 months of reserves in a retirement account almost as large as the loan amount, and an 800 FICO score" repeatedly when these were portfolio jumbo lenders to begin with.

I would not in a million years have guessed this would have been such a big deal, until it was.

Buyer almost backed out; the seller had to concede a lot to get the buyer on-board with the only 30YF jumbo lender that would go for the scenario.

How many APNs show up on the preliminary title report?

Any tips on doing due diligence on a vacant raw land in Oakland?

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