subdivision agreement

noun

A contract that a developer negotiates with a municipal government, whereby they agree to build and maintain certain aspects of a new subdivision.

A Subdivision Agreement typtically requires the developer to do things such as plant trees and install curbs and sewers.

In addition, the contract may include a commitment by the developer to maintain certain parts of the subdivision over time, such as a noise fence or grading.

However, when you buy a property in a subdivision, these responsibilities are transferred to you!

Because of this, you may become responsible for costly repairs.

Your Agreement of Purchase and Sale will include any convenants (responsibilities) that come with the property.


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