A builder's purchase of finished lots from a developer in batches on a set schedule, in place of buying them all at once.
Takedown is a trade word. The OCC handbook does not use it, but it describes the mechanics on both sides.
For the developer’s lender, the takedown schedule is the repayment plan. The handbook says a tract development loan may be repaid from the sale of lots to other developers, and that loan agreements typically require pay downs as collateral is sold and liens are released. Each lot the builder buys pays a release price to the bank. A signed lot contract with a builder, with a deposit and firm dates, is the evidence behind the sales pace in the developer’s request.
For the builder’s lender, each takedown is a use of funds. The handbook says development and construction are usually separate facilities, with the lot paid for from the first draw of the construction loan.
Banks often finance large tracts in phases, with later phases funded only after earlier ones perform. A schedule that lines up with those phases is easier to finance.
How it shows up in the data here
Takedown schedules are private contracts between a developer and a builder, and no public file reports them. Bank call reports show construction and land balances held, with no lot detail. Lenders compared for lot and tract work are under residential development comps, and you can filter construction in search by state. Nothing here shows which lender financed which subdivision.
Go further
- Residential development lenders: Lenders compared for lot and tract development.
- Deal summary builder: Turn the facts of a deal into a clean one-page summary you can copy or print. Nothing is saved or sent.
- Residential development loan package checklist: Lots and houses are repaid one sale at a time. A lender on a subdivision or a group of homes is underwriting how fast those sales will come and what happens to the loan if they slow down.
Related terms
- Finished lots: Lots with streets and utilities in place, ready for a building to be started.
- Horizontal development: The work that turns raw land into buildable lots: grading, streets, sewer and water lines and utilities, before any building goes up.
- A&D loan: One loan that pays to buy land and to develop it into finished lots.
- Absorption: The pace at which a market leases or sells available space, lots or homes over a set period.
- Spec home: A house built before any buyer has signed a contract for it, so the loan is repaid only when a buyer is found.
Sources
Plain definitions for orientation, not legal, tax or credit advice. A lender's own policy decides what it will do.