In real estate, what does "subdivision" refer to?

"Subdivision" in real estate specifically refers to the division of a larger piece of land into smaller lots that are designated for residential development or commercial use. This process typically involves obtaining the necessary permits and approvals from local governing bodies to ensure that the subdivision meets zoning regulations and other legal requirements.

Subdivisions are often developed as communities with individual homes, and they may include amenities like parks, roads, and utilities that serve the new lots. The focus on creating smaller, manageable parcels of land allows for organized growth and development, which can cater to housing needs in urban and suburban areas.

In contrast to this, the other choices do not accurately embody the concept of a subdivision. For instance, combining multiple properties into a larger one signifies consolidation rather than subdivision. A legal agreement to share property among owners pertains more to co-ownership arrangements, not land division. The process of selling part of a property does not necessarily involve subdividing the land into lots, as it might simply be a transaction involving a portion without altering the overall structure of the property. Thus, the correct definition of subdivision aligns closely with the division of land into smaller, easily developed lots for various uses.