Which development approach involves acquiring a large tract of land, recording a subdivision plat map, and using a model center from which sales may be made?

• A. Custom building
• B. Tract building
• C. Federally related transaction
• D. Local REALTOR associations

Answer: (B)

Tract building focuses on large-scale subdivisions. A developer or builder acquires a substantial tract of land, records a subdivision plat map with the county to create multiple lots, and then constructs homes for sale from a model center or sales office. The model center showcases a sample home and serves as the marketing hub to sell numerous homes in the development, leveraging standardized designs and features for efficiency and consistency.

This differs from custom building, which is about designing and building a single home for a specific buyer, without a subdivided plat or a model center. Federally related transactions relate to financing and mortgage processes governed by federal rules, not a development approach. Local REALTOR associations are professional groups for practitioners, not a development and marketing method.