Definition of "Land"
Real estate held for productive use or investment. Land is recorded at the acquisition price plus incidental costs including real estate commissions attorney's fees, escrow fees, title, and recording fees, delinquent taxes paid by the buyer, surveying costs, draining, and grading of the property. the cost of knocking down an old building to clear the land to construct a new building is charged to the land account. Amounts received from selling materials salvaged from the old building reduces the cost of the land. Land is usually presented under the Property, plant and Equipment section of the balance sheet. However, land bought for investment purposes or as a future plant site is classified under Investments. If land sale, it is shown as inventory. Land is not subject to depreciation because it is not a wasting asset.
Popular Real Estate Terms
Receipt given for a partial payment made on the sale of property. It shows the buyer has made a down payment. ...
Building with large unpartitioned floors areas often used for storage. ...
A major factor in depreciation resulting from wear and tear from use and natural deterioration through interaction of weather elements may cause depreciation to a structure. ...
Government owned lands, for conservation purposes or for specific uses such as dams and hydropower. Public lands are owned by federal, state, and local governments. Many public lands are ...
Also called purchase money mortgage. A seller's claim to property held by a buyer as collateral for a debt or charge. ...
What is Novation? What is the definition of novation? Jointly agreeing to provide an equivalent legal obligation or debt for a previous one. Persons to the contract can also be ...
The right and duties of using and holding property. ...
How much the rental property is worth. The valuation considers the net income derived from the property and a capitalization rate. ...
An agreement allowing occupancy of a premises for a stated period of time provided certain terms are met. A limited occupancy agreement is most frequently used when a prospective buyer is ...
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