Parcel

What is a Parcel?

In real estate terms, a parcel is a defined area of land that is under a single ownership. It can vary in size, shape, and usage, ranging from a small lot for a single-family home to extensive tracts of agricultural or commercial land. The concept of a parcel is fundamental in property transactions and land development as it serves as the basic unit of ownership for real estate.

Key Characteristics of a Parcel

1. Ownership: A parcel is defined by its ownership, making it a legal entity in property records.
2. Boundaries: It has set boundaries, which are often described in legal documents such as a deed or survey.
3. Identification: Parcels are typically identified by a unique identifier, such as a parcel number or lot number in a subdivision.
4. Zoning: They are subject to local zoning laws and regulations, which dictate the type of structures or activities permitted on the land.
5. Usage: Parcels can be used for various purposes including residential, commercial, agricultural, or industrial use.

Examples of Parcels

1. Residential Lot: A single-family home built on a 0.5-acre lot within a suburban neighborhood. This lot is a parcel in the subdivision.
2. Farmland: A 100-acre tract of agricultural land owned by one farmer. This entire tract is considered a parcel.
3. Commercial Plot: A parcel of 2 acres within an urban area designated for the development of a shopping center.
4. Vacant Land: An empty piece of land in a rural area waiting for future development.

Frequently Asked Questions (FAQs)

1. How is a parcel different from a lot? A parcel is any piece of real estate under one ownership. A lot often refers to a single unit within a subdivision, but all lots can be called parcels.

2. Can a parcel be split? Yes, a parcel can be subdivided into smaller lots, subject to local zoning and land use laws.

3. How is a parcel identified? Parcels are identified through unique parcel numbers assigned by local tax assessors and recorded in property records.

4. What determines the boundary of a parcel? The boundaries of a parcel are determined through legal descriptions in deeds and are often verified through surveying.

5. Can a parcel be used for different purposes? Yes, a parcel can have different zoning designations allowing for various uses, such as residential, commercial, or mixed-use—depending on local zoning laws.

Related Terms

• Subdivision: The division of a parcel of land into smaller lots for the purpose of development.
• Deed: A legal document that transfers ownership of real property from one party to another.
• Survey: The process of measuring and mapping out the boundaries and features of a parcel of land.
• Zoning: Regulations established by local jurisdictions determining the permitted uses of a parcel of land.
• Easement: A legal right to use another’s land for a specific limited purpose.
• Land Use: The management and modification of natural environment into a built environment, such as settlements and semi-natural habitats.

Online Resources

1. Multiple Listing Service (MLS): Local databases of available real estate listed by real estate brokers.
2. Parcel Fact: A tool for finding standardized data on parcels in the United States.
3. PropertyShark: Provides property reports for real estate transactions.
4. Reonomy: A platform for data on commercial real estate.

References

1. “The Language of Real Estate” by John W. Reilly
2. “Real Estate Principles: A Value Approach” by David C. Ling and Wayne R. Archer
3. U.S. Geological Survey (USGS) for maps and surveying data
4. Local tax assessor’s office for parcel numbers and property records

Suggested Books for Further Studies

1. “Real Estate Investing For Dummies” by Eric Tyson and Robert S. Griswold
2. “Modern Real Estate Practice” by Fillmore W. Galaty, Wellington J. Allaway, and Robert C. Kyle
3. “Real Estate Finance & Investments” by William B. Brueggeman and Jeffrey D. Fisher
4. “Property Development” by David Cadman and Geoffrey Topping

Real Estate Basics: Parcel Fundamentals Quiz