Definition of "Land"

Darlene  Hurst real estate agent

Written by

Darlene Hurstelite badge icon

Coldwell Banker

Real estate held for productive use or investment. Land is recorded at the acquisition price plus incidental costs including real estate commissions attorney's fees, escrow fees, title, and recording fees, delinquent taxes paid by the buyer, surveying costs, draining, and grading of the property. the cost of knocking down an old building to clear the land to construct a new building is charged to the land account. Amounts received from selling materials salvaged from the old building reduces the cost of the land. Land is usually presented under the Property, plant and Equipment section of the balance sheet. However, land bought for investment purposes or as a future plant site is classified under Investments. If land sale, it is shown as inventory. Land is not subject to depreciation because it is not a wasting asset.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Terms

The definition of option explains the term as something that can be chosen in spite of having multiple other alternatives. It could be an option for food, which shows a preference for one ...

List of architectural design items needing to be corrected and resolved prior to finalizing a building design. ...

Measure of the annualized compound growth of a real estate investment. ...

A hard white finishing cement with a fast setting time and a high polish capability. Consisting of anhydrous gypsum plaster and an accelerant, alum, Keene's cement is normally applied over ...

Peculiarities necessary to form a valid joint tenancy. They are unity of time, title, interest, and possession. ...

Same as term soil porosity: Extent to which soil has cavities or pores, thereby allowing water to pass through. ...

Surveyor's use of hypothetical lines to portray a properties position. North to South in the meridian line while East to West is the base line. ...

A Construction method of using twice the number of framing members to provide additional structural strength. ...

Same as term marginal land: Land that has poor income potential, usually used in an agricultural sense meaning that the land is untellable, has poor access, is extremely steep, has suffered ...

Popular Real Estate Questions