Selling Land to a Developer in Texas: What They Check First
Short answer: A developer buys land for what can be built on it, so before an offer turns into a closing they check whether the tract can legally be divided and built on. In a city or its extraterritorial jurisdiction, Texas Local Government Code Section 212.004 requires a plat when land is divided into two or more parts for a subdivision, except parts over five acres that each have access and dedicate no public improvement. Outside cities, Section 232.001 requires a plat for a subdivision, and Section 232.0015 lists exceptions, such as lots all larger than 10 acres. Developers also check zoning (only cities can zone in Texas, per Dallas County), deed restrictions, which a court can enforce under Property Code Section 202.004, the floodplain and legal access. Knowing these answers before you talk to a developer helps you price the land and avoid a deal that falls apart.
Land on the edge of a growing Texas town often draws interest from builders and developers. A developer buys land for what can be built on it, not for what it is today, so before an offer turns into a closing they check whether the tract can legally be divided, reached and built on. This guide explains what they look at first, so you can answer those questions before they are asked and price the land with your eyes open.
1. Can the land be divided? Platting rules
Most developers want to divide land into lots, and Texas requires a recorded plat for that in most cases. Which rule applies depends on where the land is.
- Inside a city or its extraterritorial jurisdiction (ETJ). Local Government Code Section 212.004 requires a plat when an owner divides a tract into two or more parts to lay out a subdivision, by any method. It excludes a division into parts larger than five acres where each part has access and no public improvement is being dedicated.
- Outside cities. Section 232.001 requires a plat when the owner divides a tract to lay out a subdivision, lots, or streets and other areas for public use. The plat must describe the subdivision by metes and bounds.
- Exceptions outside cities. Section 232.0015 says a county may not require a plat when all the lots are more than 10 acres and the owner does not lay out streets or similar areas, and lists other exceptions, such as land used primarily for agriculture and up to four lots to close relatives.
For a developer, a tract that can be platted without trouble is worth more than one with questions. Our guide on selling part of your land covers the same rules from the owner's side.
2. What can be built: zoning
Dallas County's planning office puts it plainly: in Texas, only cities, not counties, have the authority to adopt zoning ordinances. Inside a city, the zoning decides what a developer can build, and a rezoning adds time and risk. Outside cities there is generally no zoning, but counties still regulate platting, floodplain building and septic systems. Our rules checklist shows which apply to your land.
3. Deed restrictions
Recorded restrictions can limit lot sizes, uses or the number of homes, and they bind every owner. Under Property Code Section 202.004, a court can assess civil damages of up to $200 for each day a restrictive covenant is violated. A developer will read them in the title commitment; our guide on what a title search finds explains where they show up.
4. The ground itself: floodplain, access and easements
- Floodplain. Land in a mapped flood zone can be harder and costlier to build on. See how to check a Texas flood zone.
- Access. Lots need legal access; a tract that relies on a neighbor's goodwill is a problem. See access easements.
- Easements. Pipelines, power lines and drainage easements can cut through the best part of a tract.
5. Utilities
Water, sewer or septic, and power decide how many lots a tract can support and what it costs to serve them. Developers ask early how far the nearest lines are and who provides service. If you know, say so; if you do not, the local providers can tell you.
Questions to ask a developer before you sign
- Is the offer for the land as it is, or does it depend on platting, rezoning or utility approvals?
- How long is the study period before the earnest money is at risk, and who keeps it if the deal ends?
- Who pays for surveys, engineering and platting, and what happens to that work if the deal does not close?
- What happens to your price if the approvals take longer than expected?
Clear answers in writing protect both sides. Our guide on earnest money in a Texas land sale explains how deposits work.
What to have ready
- The deed and the appraisal district record (acreage, account number).
- Whether the land is inside a city, its ETJ or unincorporated county.
- Any survey, recorded restrictions and easements.
- What you know about access, flooding and utilities.
Our guide on what to have ready before you sell covers the paperwork. If you want a number to compare with a developer's interest, you can ask us for a written cash offer.
Common questions
- Do I need a plat to sell land to a developer in Texas?
- Selling the whole tract as it is usually does not require a plat; dividing it does. Inside a city or its extraterritorial jurisdiction, Local Government Code Section 212.004 requires a plat for dividing land into two or more parts for a subdivision, except parts over five acres with access and no public improvement. Outside cities, Section 232.001 applies, with exceptions in Section 232.0015.
- What is the 10-acre exception in Texas?
- Under Local Government Code Section 232.0015, a county may not require a plat when an owner divides a tract into parts that are all more than 10 acres, as long as the owner does not lay out the streets or other parts described in Section 232.001(a)(3). It applies outside city limits.
- Can a county in Texas zone my land?
- Generally no. Dallas County's planning office notes that in Texas only cities, not counties, can adopt zoning ordinances. Counties still regulate subdivision platting, floodplain development and septic systems in unincorporated areas.
- Why do developers ask about deed restrictions?
- Recorded restrictions can limit lot sizes, uses or the number of homes, and they bind every owner. Under Property Code Section 202.004 a court can assess damages of up to $200 a day for violating a restrictive covenant, so a developer checks them before buying.
- What else do developers check before buying land?
- Legal access to a public road, the flood map and drainage, utilities and the cost to bring them in, any easements across the land, and the title. Having that information ready makes your land easier to evaluate.
Sources
- Texas Local Government Code Section 212.004 (plat required: cities and ETJ)
- Texas Local Government Code Section 232.001 (plat required: outside cities)
- Texas Local Government Code Section 232.0015 (exceptions to the plat requirement)
- Dallas County Planning and Development: zoning and unincorporated area regulations
- Texas Property Code Section 202.004 (enforcement of restrictive covenants)
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