Definition of "Plot"

The meaning of plot refers to a parcel or a small lot. A plot is essential in determining the land cost. Additionally, it defines a diagram or schematic drawing of a building or piece of land. Note that some countries use the term lot for the plot.

Understanding a plot’s size

Land surveys broke down the land into a grid pattern in the Midwest US for farms and ranches. There, a square is 640 acres by default. Thus, 40 acres is a quarter-mile on each side. A regular standard plot of land to produce crops and raise animals varies from 40 acres to 640 acres. 

What does plot mean in real estate?

The meaning of plot in real estate conveys a defined parcel of land that presently is or will be in land ownership, in other words, retained by a landowner. In certain countries, you’ll find the term plot as a parcel of real property or immovable property. One or more individuals or even corporations, governments can own a plot.

Taxes you must pay when owning a plot

In addition, one can refer to a plot as a small and empty area, for example, a car park or garden plot. The plot owners have to periodically pay a real estate property tax to the county for their land like any property. The local government calculates the tax based on the assessed value of the real estate. 

Owning an empty plot may come with unexpected financial obligations like hidden costs of traditional homeownership. Moreover, additional plot taxes are due once a transfer of ownership occurs at property sales. Sometimes the government can impose specific fees for plot improvement purposes, such as building sidewalks and curbs. They can also determine what buildings they permit on a plot in zoning ordinances. Under such circumstances, we can refer to areas and properties zoned for residential buildings, for agricultural, commercial, or industrial use.

Plots deeds

Initially, the government granted individuals and companies plots in land patents. The seller signs a warranty deed and records it at the county recorder’s office to transfer a plot’s ownership. In the deed, officials must specify the metes and bounds description with the plot’s well-defined boundaries in a recorded plat diagram.

Improving a plot’s value

One can raise a plot’s value by plottage in real estate, meaning you link multiple fields into one single parcel. Contact local real estate agents if you’re interested in buying or selling a property or land!

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Terms

(1) A persons permanent and legal place of residence. While an individual may have one or more residences, it is only possible to have one permanent address. (2) The state where one has ...

“What is Situs?”, you ask.Situs is a word in Latin that basically means the site or location where something exists or originates. Like most words in latin, situs is usually ...

Party that receives part or all of a construction job to do from the general contractor. ...

Sometimes, a perplexing legal term (a genuine headscratcher) emerges when buying or selling a property. You know you should know it, but its precise definition escapes you. Today's special ...

Increasing tax rates with increasing levels of taxable income. ...

The amount of inherent risk for a mortgage in granting a mortgage. An operating principle in mortgage risk rating is that the mortgage cannot exceed 2.5 times the mortgagor's annual income, ...

Written enumeration of the desired selling prices associated with homes or office buildings for sale. The prospective buyer can then determine if the properties for sale are within his ...

One's given name at birth including a first name, a possible middle name, and a surname. The legal name must be used to legally sign documents, deeds, or contracts. ...

Rule within the Internal Revenue Code applicable to capital gains from selling real estate that has been depreciated for tax purposes. Most buildings must be depreciated using the ...

Popular Real Estate Questions