Definition
In real estate, a tract is a term used to describe a considerable expanse of land that is typically held for the purposes of subdivision. Subdividing involves dividing the tract into smaller parcels, making it easier for development, selling, or leasing. This process generally includes planning and zoning regulations to ensure proper development according to the guidelines set by local authorities.
Examples
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Residential Tract
- A developer purchases a 100-acre tract of land on the outskirts of a city. This tract is subdivided into smaller residential plots to create a new housing subdivision.
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Industrial Tract
- An industrial company acquires a 200-acre tract of land located near a major highway. They subdivide this tract into lots for future warehouses and manufacturing plants.
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Commercial Tract
- A commercial real estate firm buys a 50-acre tract of land in a developing urban area. This tract is subdivided to create a shopping mall and surrounding retail spaces.
Frequently Asked Questions (FAQs)
What is the purpose of subdividing a tract of land?
Subdividing a tract of land makes it easier to manage and develop the property according to specific needs, whether for residential, commercial, or industrial purposes. It also allows developers to sell smaller, more affordable parcels.
How is a tract of land different from a parcel?
A tract typically refers to a larger piece of land that can be subdivided into smaller parcels. A parcel is a single unit of land, typically already subdivided, that can stand alone as its own property.
What steps are involved in subdividing a tract of land?
Subdividing a tract of land involves several steps, including surveying the land, submitting subdivision plans to local authorities, getting the necessary approvals, and recording the subdivision plan with the local public records office.
What are the zoning regulations associated with tracts of land?
Zoning regulations for tracts of land vary by location and dictate what type of development can occur, whether residential, commercial, or industrial. These regulations are established by local government bodies to ensure proper and efficient land use.
Is a tract of land always large?
While tracts of land are generally considered large, the size can vary depending on the context and geographic location. The key characteristic is that it is often intended for subdivision.
Related Terms
Parcel
A smaller, defined piece of land that has already been subdivided and can stand alone as its own property.
Subdivision
The process of dividing a larger tract of land into smaller parcels to create individual plots for development or sale.
Zoning
A regulatory framework established by local authorities that dictate land use and development standards within a specific area.
Real Estate Development
The process of planning, constructing, and managing buildings or land improvements to increase property value and utility.
Land Survey
The technique of measuring and mapping land to determine its boundaries, area, and topography.
Online Resources
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National Association of Home Builders (NAHB)
- Website
- Provides resources on land development, tract building, and industry standards.
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Urban Land Institute (ULI)
- Website
- Offers resources and education on land use development, including tracts and subdivisions.
References
- Miceli, T.J., & Sirmans, C.F. (1999). “The Economics of Land Subdivision Regulation.” The Journal of Real Estate Research, 17(3), 357-372.
- Real Estate Finance and Investments, by William Brueggeman and Jeffrey D. Fisher. The role of tracts in real estate development process.
Suggested Books for Further Studies
- “The Book on Managing Rental Properties: A Proven System for Finding, Screening, and Managing Tenants with Fewer Headaches and Maximum Profits” by Brandon and Heather Turner
- “Real Estate Investing For Dummies” by Eric Tyson and Robert S. Griswold
- “Land Development Handbook” by Dewberry
