Definition§
Improved Land refers to a parcel of land that has undergone development activities, making it more useful and valuable compared to its original state. This includes activities such as landscaping, grading, installation of utilities, construction of roads, curbs, gutters, and the construction of buildings.
Examples§
- Residential Property: A raw piece of land that has been cleared, leveled, and had utilities such as water, sewer, and electricity installed. Subsequently, a house is built on the property.
- Commercial Property: A vacant lot within a city that is transformed into a retail plaza. This process includes constructing access roads, parking lots, buildings, and landscaping.
- Agricultural Land: A section of land that has been cleared of trees and rocks, leveled for farming, and where irrigation systems have been installed.
FAQ§
What distinguishes improved land from raw land?§
Raw land refers to undeveloped land with no improvements, while improved land has undergone activities like utilities installation, grading, road and building construction.
What are common improvements made to land?§
Improvements can include landscaping, grading, the installation of utilities (water, sewer, electrical), road construction, and erecting buildings.
Why is land improvement important?§
Improving land increases its usefulness, market value, and can provide utility and accessibility needed for residential, commercial, or agricultural use.
How does land improvement affect property taxes?§
Improved land typically has a higher assessed value, which generally results in higher property taxes compared to raw land.
Can land improvement be done on leased land?§
Yes, land improvement can be performed on leased land, though the terms of the lease need to allow for such developments. The improvements may become part of the property’s lease agreement conditions.
Related Terms§
- Raw Land: Unimproved land that has not undergone any development or improvements.
- Improvement: Any addition or change to land or a building that enhances its value, utility, or appearance.
- Land Development: The process of making raw land usable for specific purposes by carrying out improvements.
Online References§
Suggested Books for Further Studies§
- “Land Development Handbook: Planning, Engineering, and Surveying” by Dewberry
- “Real Estate Development and Investment: A Comprehensive Approach” by S. Peca
- “The Complete Guide to Developing Commercial Real Estate: The Who, What, Where, Why, and How” by Robert A. Wehrmeyer
Fundamentals of Improved Land: Real Estate Basics Quiz§
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