7/10/2023 0 Comments Part and parcel meaningThere’s no established limit for how big a parcel can be, neither in terms of how many lots it includes nor in terms of how many acres it covers. If your parcel only has one lot in it, there’s no effective difference between the lot and the parcel. Parcel and lot are often treated as interchangeable terms because, for most property owners, they are the same thing. Your property taxes are paid on the parcel, not the lot. What is a parcel of land?Ī parcel is a unit of land defined by the local government for tax purposes. Or you might be buying five lots all right next to each other. You might be buying three lots in three different neighborhoods, only one of which is residential. ![]() If you buy a parcel, you may be buying multiple lots, those lots may not be adjacent to each other, and they may not be zoned the same way either. To put it simply, a lot is a piece of property that’s defined for ownership and development purposes, while a parcel is defined for taxation purposes. Buying a large ranch or farm, for instance, would technically mean buying a parcel, but it’s unlikely that parcel would be divided into lots, since there’d be no need for it. Or, in a rural area especially, it’s possible that the parcel doesn’t include any lots. One way to think of it is that a parcel is usually defined for taxation purposes but a lot is often defined for zoning purposes.Ī parcel can consist of multiple lots, or it can be just one. In effect, it’s a broader term which often includes lots. In most places, a parcel is simply a unit of land. Each lot typically has clear restrictions on how it can and cannot be developed and used. Some are zoned for residential use, others for business, etc. This means that, when you purchase a lot, you have to be aware of what that lot can be used for. LotĪ lot is a defined subdivision of property that has specific legal permissions for how it can be used and developed. The exact definition of each can actually vary somewhat from state to state, but in general, here are the differences. They mean different things, though, and if you’re going to buy land, it’s crucial that you understand the differences in the two terms. The difference between the two isn’t immediately obvious, and it can seem like the terms are interchangeable. ![]() The difference between a lot and a parcelĪs you shop around for land, you’ll see some land labeled as lots and some as parcels. To help make things easier for you, we’ve done all the hard work and research to explain exactly what a parcel of land is, and why it matters for you to know. Real estate and tax terminology is a murky area that can confuse the best of us. For others, the difference between a lot and a parcel can have major financial implications. Most people don’t know about parcels because they only own one lot, so for them lot and parcel are effectively interchangeable terms. Local governments are free to decide if they want to limit the size of a parcel, or if they’ll define two lots separated from each other as one parcel, etc. Parcel is not a clearly defined term while the basic definition of a piece of property defined for tax purposes is true nearly everywhere, the exact definition of a parcel can vary. This makes it simpler for local governments to collect property taxes from people who own multiple or very large properties. It can include one or more lots, which don’t have to be adjacent. Simply put, a parcel of land is property defined for tax purposes. ![]() It’s become a bit obscure in it’s meaning, and most people never have a reason to know what it is. If you’re not sure what a land parcel is, you’re not alone.
0 Comments
Leave a Reply. |