Definition
A tract (also known as a parcel) of land is a defined area of real estate, generally held with the intention of subdividing it into smaller plots. Tracts are typically of significant size and located in areas earmarked for development. This process can involve dividing the land into residential, commercial, or industrial plots, which are called subdivisions.
Examples
Residential Development: An investor acquires a large tract of farmland with the intention of converting it into a suburban residential subdivision, consisting of individual home lots.
Industrial Park: A real estate developer purchases an extensive tract of unused urban land to develop an industrial park, subdividing it into separate plots for factories and warehouses.
Retail Complex: A company buys a tract of land near a growing city and subdivides it into plots for a shopping mall and surrounding stores.
Frequently Asked Questions
Q1: What is the difference between a tract and a parcel?
- A: The terms tract and parcel are often used interchangeably, with both referring to a defined piece of land. A tract is typically used when referring to a larger expanse of land, while parcel may refer to a smaller plot.
Q2: What is the process involved in subdividing a tract of land?
- A: Subdividing a tract involves dividing the larger area into smaller lots, followed by obtaining necessary governmental approvals, planning infrastructure, and marketing the new subdivisions for sale or lease.
Q3: What are common uses for subdividing tracts of land?
- A: Common uses include residential housing developments, commercial buildings, industrial facilities, and recreational areas.
Related Terms
- Subdivision: A tract of land divided into smaller plots.
- Real Estate Development: The process of improving land for residential, commercial, or industrial use.
- Zoning: Government regulation specifying the types of land use (e.g., residential, commercial, industrial) permissible in each designated tract or parcel.
Online References
Suggested Books for Further Studies
- “The Real Estate Development Matrix” by Daniel B. Kohlhepp
- “Professional Real Estate Development: The ULI Guide to the Business” by Richard B. Peiser and David Hamilton
- “Land Development Handbook” by Dewberry
Fundamentals of Tract: Real Estate Development Basics Quiz
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