**Contiguous Lots: Unlocking Vast Potential and Value in Property Development
Contiguous lots refer to properties that are adjacent to each other. For those looking to increase their yard size or footprint, purchasing two or more adjoining lots is a prime strategy. This approach is highly beneficial both for homeowners aiming to build more expansive dwellings and for developers who need larger plots for significant commercial projects.
In burgeoning urban locales, underutilized lots in older neighborhoods often present golden opportunities. These lots, occupied by outdated structures, frequently hold more value than the buildings sitting on them. Savvy buyers capitalize on this by purchasing the properties, demolishing old structures, and constructing modern homes or commercial developments. Such transitions not only enhance property values but also contribute to the revitalization of aging urban areas.
For developers and homeowners alike, building on contiguous lots often necessitates rezoning to align the property use with local regulations. Collaborating with the planning department follows as the next crucial step, ensuring the new structure complies with building codes and zoning policies.
By careful planning and understanding local regulations, both individual property owners and developers can significantly turn the tide on their investments, bringing enhanced value and revitalization to communities.
Related Terms: Land Assembly, Rezoning, Real Estate Development, Commercial Real Estate, Urban Growth
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### What are contiguous lots?
- [ ] Lots that are owned by the same individual
- [x] Lots that are adjacent to each other
- [ ] Lots that are designated for commercial use
- [ ] Lots that have old structures on them
> **Explanation:** Contiguous lots refer to lots that are adjacent to each other. They are often purchased together by individuals who want larger parcels of land or by developers for constructing larger buildings.
### Who commonly purchases contiguous lots for commercial development?
- [ ] Private homeowners
- [x] Commercial developers
- [ ] Real estate agents
- [ ] Government entities
> **Explanation:** Commercial developers commonly purchase a series of contiguous lots to put up large structures. This strategy allows them to construct bigger buildings in desirable urban locations.
### Why might people buy contiguous lots in older urban neighborhoods?
- [x] To demolish old structures and build new ones
- [ ] To increase property taxes
- [ ] To preserve historical architecture
- [ ] To sell the land to the government
> **Explanation:** In older urban neighborhoods, the lot can often be worth more than the structure. People buy these properties to demolish the existing structures and build new homes or commercial buildings, helping to revitalize the area.
### What is often required when building on adjacent lots in most jurisdictions?
- [ ] Obtaining a commercial loan
- [x] Rezoning the property
- [ ] Hiring a private contractor
- [ ] Increasing property tax assessments
> **Explanation:** In almost all jurisdictions, building on adjacent lots involves rezoning the property for the intended use. This is a necessary first step to ensure that the land can be used for the planned structures.
### What is the second step after rezoning contiguous lots for development?
- [ ] Selling the property
- [ ] Increasing the value of adjacent properties
- [ ] Hiring a construction crew
- [x] Working with the planning department to meet building codes
> **Explanation:** The second step after rezoning contiguous lots is to work with the planning department. This ensures that the planned structure meets the building code requirements and zoning stipulations, making the development legal and compliant with local regulations.
### How does new residential and commercial development in aging neighborhoods benefit the area?
- [ ] By increasing traffic
- [ ] By decreasing property values
- [x] By revitalizing the area
- [ ] By increasing noise pollution
> **Explanation:** Both new residential and commercial development in aging neighborhoods helps revitalize the area. Such developments often attract new residents and businesses, contributing to the overall economic and social upliftment of the neighborhood.
### What is one main reason people purchase multiple contiguous lots?
- [ ] To reduce land tax
- [x] To create a larger parcel of land
- [ ] To avoid zoning laws
- [ ] To minimize utility bills
> **Explanation:** People purchase multiple contiguous lots to create a larger parcel of land. This is often desired for building larger homes, creating extensive yards, or developing commercial properties.
### Before building on contiguous lots, what legal action might be required?
- [x] Rezoning
- [ ] Fundraising
- [ ] Insurance adjustments
- [ ] Price negotiation
> **Explanation:** Rezoning might be required before building on contiguous lots. This legal action ensures that the land is authorized for the intended use, whether residential or commercial.
### What is a primary motivation behind commercial developers purchasing contiguous lots?
- [ ] To lower property taxes
- [ ] To prevent competition
- [x] To allow for building larger structures
- [ ] To sell them to residential buyers
> **Explanation:** Commercial developers purchase contiguous lots primarily to allow for building larger structures. This increases their capacity to create commercial space suited for businesses, offices, or other large-scale operations.
### Why might contiguous lots in desirable urban areas with old houses be particularly valuable?
- [ ] They come with low property taxes
- [ ] They have modern infrastructure
- [x] The lots may be worth more than the old structures
- [ ] Building permits are easier to obtain
> **Explanation:** In desirable urban areas, contiguous lots with old houses are particularly valuable because the lots may be worth more than the existing structures. Developers and buyers often demolish the old homes to build new, more valuable properties.
