Definition of "Land"
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.
Popular Real Estate Terms
Tax credit aimed at encouraging the conservation of natural resources, as well as the development of alternative resource. ...
Point at which a housing development becomes a neighborhood. After an initial housing development is sold and the new owners become established, the neighborhood stage begins. The ...
Wondering what a Judgment Lien is?Well, a Lien can be consensual or non-consensual, right? Meaning it can be forced or agreed upon by way of a bilateral contract. When we say ...
Optional feature included in some homeowners insurance policies that pays the replacement cost of any personal property. ...
Money earned or accrued during an accounting period that results in the increase in total assets. Items such as rental income. Revenues arising from the sales of real estate. The ...
The term over-improvement in real estate defines a substantial and somewhat exaggerated land improvement compared to other properties in the area. For example, an individual builds at a ...
Thin layer or slate of baked clay, linoleum, or some other material that is used for covering floors, roofs, or as an ornament in a building. ...
General decrease in prices. It is the opposite of inflation and different from disinflation, which is a decrease in the rate of price increases. Deflation results form a reduction in the ...
Total expenditure to modernize a building to meet the owner's or tenant's needs. ...
Have a question or comment?
We're here to help.