6 Real Estate Development Free Online FlashCards

What is real estate development?

Real estate development turns land or an existing property into a new or improved place people can use.

What are the main stages of real estate development?

A typical sequence is site selection, feasibility and due diligence, design and approvals, financing and commitment, construction, and completion.

What should a developer assess when selecting a site?

Assess whether the proposed use fits market demand, access and utilities, physical site conditions, legal rules, and the surrounding community.

How can a developer secure time to investigate a site before buying it?

An option or purchase agreement can give the developer time to investigate the property before committing to buy it outright.

What does a development feasibility assessment test?

Feasibility tests whether the project can be built, approved, and supported financially.

What is the purpose of due diligence in development?

Due diligence investigates the property and project assumptions, potentially including title, survey, geotechnical, utility, and environmental reviews.

What does a Phase I environmental site assessment examine?

A Phase I assessment reviews records, past uses, and site conditions for possible contamination; identified concerns may require further investigation.

What are entitlements and permits in real estate development?

Entitlements and permits authorize aspects of a project; examples include zoning changes or exceptions, site-plan approval, environmental permits, and building permits.

When does a development project reach formal commitment?

Formal commitment occurs when the developer is prepared to accept the financial and contractual obligations of building the project.

What does the project team monitor during construction?

The developer and project team monitor costs, schedule, quality, safety, and required inspections, coordinating and documenting changes.

What must happen as construction ends and a property prepares to open?

Completion includes inspections, correcting outstanding work, utility connections, and required occupancy approvals before the property is prepared for use.

Why is real estate development an iterative process?

They are iterative: new information, costs, or approval conditions can require design changes or a decision to stop.