Lot Splitting Approval by Subject Jurisdictions

The bill provides that, on or after December 31, 2027, subject to an administrative approval process, a subject jurisdiction shall approve the split of an original lot into 2 new lots if the following conditions are met:

• The area of the original lot is 2,000 square feet or greater before the split;
• If the 2 new lots are not equal in area, the area of the smaller of the 2 new lots is equal to or greater than 40% of the area of the original lot;
• The original lot is not subject to any previously recorded lot split;
• Residential use is allowed on the original lot;
• The original lot is not an exempt lot; and
• The original lot is not located within a common interest community that was created on or before December 31, 2027.

If an original lot or any structure built on the original lot is subject to an evidence of debt constituting a residential mortgage loan, then prior to approving the split of an original lot, a subject jurisdiction shall verify that the holder of the evidence of debt constituting a residential mortgage loan (holder) has received notice of the proposed lot split and has consented to the lot split in writing. The holder may condition consent to the lot split on the satisfaction of specified conditions.

The written consent of the holder must include:

• The signature of the holder or the agent of the holder;
• The name of the record owner or ground lessee of the original lot;
• The legal description of the original lot; and
• The identities of all parties with an interest in the original lot, as reflected in the real property records.

The written consent of the holder must be recorded in the office of the county recorder of the county in which the original lot is located. If the holder does not provide written consent to the lot split, the subject jurisdiction shall not approve the lot split.

(Note: This summary applies to this bill as introduced.)