What does the term subdivision refer to in real estate?

In real estate, the term subdivision specifically refers to the division of land into smaller lots. This process typically involves the reconfiguration of a larger parcel of land into individual plots that can be sold or developed separately. Subdivision is an essential aspect of urban planning and development, as it allows for the creation of residential neighborhoods, commercial developments, and other land use projects. It requires adherence to local zoning laws and regulations, ensuring that the new lots are suitable for their intended use and that they comply with infrastructure needs such as roads, utilities, and drainage systems.

While other aspects of real estate, such as property ownership or the formation of homeowners' associations, are important, they do not define what subdivision directly means in the context of land development. The act of selling a property, for instance, pertains more to the transfer of ownership rather than the division of land itself.