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

In real estate development, the term "subdivision" specifically refers to the act of dividing land into smaller parcels for sale or development. This process typically involves taking a larger tract of land and partitioning it into multiple, smaller plots. Each subdivided parcel can then be sold individually or developed for various purposes, such as residential, commercial, or industrial uses.

Subdivision is a critical component in real estate as it not only enhances the marketability of the land but also plays a vital role in urban planning and development. Subdivisions often involve the creation of new roads, utilities, and services that can bring additional value to the land and facilitate further development.

The other options, while related to real estate, do not accurately capture the essence of subdivision. Combining parcels into one refers to a different process known as aggregation or consolidation. Developing a single piece of land for residential use focuses on the end-use rather than the division process itself. The legal transfer of ownership of property pertains to the sale or exchange of property rights rather than the division of land into smaller units.