What does "subdivision" refer to in real estate development?

The term "subdivision" in real estate development specifically refers to the process of dividing land into smaller parcels. This action typically involves taking a larger piece of land and creating smaller lots or plots that can be sold separately or developed independently. It is a common practice for residential development, where a large tract of land is subdivided into lots for new homes to be built.

Subdivision usually requires adherence to local zoning laws, regulations, and sometimes involves obtaining approval from planning authorities. This is crucial because it affects infrastructure, property values, and land use in a community.

In contrast, the other options do not capture the essence of what subdivision entails. Selling land without division does not involve breaking it down into smaller entities, while building multiple structures on a single property pertains more to construction than land division. Renovating existing properties for resale focuses on improving already built structures rather than the subdivision of land itself. Thus, the correct definition of subdivision centers around the division of land into smaller parcels.