Plottage In Real Estate
The definition of plottage in real estate is simple. When you combine multiple pieces of land into one large parcel, the plot appreciates in value. This is not to be confused with the process of combining multiple plots of land into a single larger plot, which is known as assemblage in real estate.
Plottage in real estate is very common in urban areas that have large areas areas covered with small, undeveloped, individually owned parcels of land. Firms will buy up large quantities of these individually owned plots and combine them into large plots perfect for the development of condominium complexes or other types of real estate developments. This is what plottage in real estate development means.
Examples of plottage in real estate
Plottage in real estate can occur in a variety of different scenarios. As previously shown, plottage is most common where there are large areas of undeveloped land in close proximity to urban population centers, but it occurs under other scenarios as well.
Another common instance of plottage in real estate is that of suburban areas transitioning into larger commercial holdings. Firms buy up plots of land in suburban areas to make way for the growth of cities in order to construct larger commercial complexes, such as shopping malls or office spaces.
An additional example of plottage in real estate often occurs with the expansion of agricultural firms, where expanding farming operations require more land on which to grow crops or livestock. Expanding farming operations will buy up plots of land surrounding theirs and construct the necessary structures and install the necessary machinery for their agricultural operations.
These are just a few of the many examples of plottage in real estate. Plottage is very common in quickly developing cities and other fast-growing areas of the country, and its occurrence and effects can be observed throughout the entire country.
Popular Real Estate Terms
The definition of involuntary alienation in real estate is the loss of property through attachment, condemnation, foreclosure, sale for taxes or other involuntary transfer of title. ...
Space reserved for specified vehicles. For example, an office building may have space available for automobiles of tenants, clients of tenants, and other visitors. Parking facilities may be ...
Value is exchanged by the parties to an agreement involving current or future performance making it legally enforceable. Without reasonable consideration for performance, the contract may ...
People say time is money. The old-age cliche applies more than ever in our case as we define what the Time Value of Money (TVM) means. You’ll find the term time value for money ...
Mortgage market in which original loans are made by lenders. The market is made up with lenders who supply funds directly to borrowers and hold the mortgage until the debt is paid. Examples ...
Builder's ten-year guarantee that their workmanship, materials, and construction are up to established standards. The HOW provides reimbursement for the cost of remedying specified defects. ...
Local regulation on how real property may be used in a particular locality. The county may establish different zoning classifications and restrictions. If the ordinance is violated, ...
Foreclosure sale enable in those states permitting the use of a power of sale clause to be inserted into a mortgage or deed of trust empowering the mortgagee to advertise and sell a ...
A property owner who lives in the property he also leases or rent to others. For example, John owns a two-family house. He lives in one side of the house and rents out the other side to the ...
Have a question or comment?
We're here to help.