The real estate industry is filled with unique words and technical terminology that can be confusing, especially for new investors. Understanding the different types of land is crucial for any real estate professional. In this article, we will explore some of the most common land types and terminology, their characteristics, and their significance in the industry.
Tract
A tract refers to a piece of land that has clearly established boundaries, usually determined by a formal land survey. It can be a single lot or an area with multiple lots within it. The size of a tract can vary, ranging from a few acres to hundreds or even thousands of acres.
Farm
A farm is a parcel or multiple parcels of land dedicated to agricultural activities or livestock farming. Farms can vary in size and may include houses, barns, and other structures. The United States Department of Agriculture (USDA) defines a farm as any place that produces and sells at least $1,000 worth of agricultural products in a year.
Ranch
A ranch is an area primarily used for raising livestock, such as cattle, sheep, or pigs. It is often referred to as a pasture and is dedicated to grazing. The size of a ranch can vary significantly, depending on the region and purpose. Ranches can range from a few acres to thousands of acres.
Ranchette
A ranchette is a smaller version of a ranch. It typically ranges from 5 to 10 acres and includes similar features and characteristics as a larger ranch. Ranchettes are often created by subdividing a larger farm or ranch into smaller parcels. They offer a unique blend of residential living and agricultural opportunities.
Plot
A plot refers to a smaller piece of land that is delineated and marked for a specific purpose in the future. It is often used to grow specific crops or plants. Common examples of plots include "bean plots," "cabbage patches," or "briar patches."
Patch
Similar to a plot, a patch is a small area used to grow a specific plant or crop. It can be referred to as a "cabbage patch" or a "briar patch." Patches are often smaller in size compared to plots.
Parcel
A parcel is a piece or unit of land created by dividing a larger area. It can be applied to various land types, including tracts, ranches, farms, plots, and more. Parcel sizes can vary greatly, and the classification of a parcel as "small" or "large" is relative to its surroundings.
Plat
A plat refers to a map or chart that represents a specific piece of land. It includes information about the land's features, infrastructure, and boundaries. Plats are essential for understanding the layout and characteristics of a property.
Block
A block typically refers to a group of buildings surrounded by streets. While blocks are more commonly associated with urban areas, they can also apply to vacant land. Blocks are often square or rectangular in shape and are prevalent in towns or cities.
Park
Parks are areas of public land dedicated to preserving nature and providing green spaces for people to enjoy. They are funded by tax revenue and maintained by government agencies. Parks offer opportunities for recreation and relaxation, playing a crucial role in enhancing the quality of life in communities.
Homestead
A homestead refers to a house where people live, typically found on farms, ranches, or other types of land. It is not only inhabited by those who own or work the land but also their families. The term "homesteading" is often associated with self-sufficiency and agricultural practices, where individuals utilize rural land to grow their crops through subsistence agriculture.
Plantation
Plantations are large farms specifically dedicated to growing a particular crop. They are often found in tropical regions and employ a resident labor force. Common types of plantations include those for sugar cane, oil palms, rubber trees, bananas, and other produce.
Range
The term "range" has multiple meanings in the context of land types. It can refer to a location description within a township, section, and range. Additionally, "rangeland" refers to open land predominantly covered by grasses, forbs, and possibly shrubs or dispersed trees. Ranges play a vital role in the agricultural system, providing grazing areas for animals.
Section
In U.S. land surveying, a section refers to one square mile of land, equivalent to 640 acres. Sections are also used to identify a property's location within a township, section, and range. They are part of a larger system used in property legal descriptions, providing specific geographical references.
Reservation
A reservation or reserve is an area established to protect specific resources, such as wildlife, culture, history, or indigenous communities. Reservations originated in the United States during interactions between European settlers and Native Americans. These areas have been dedicated to the preservation and welfare of Native American tribes and their traditions.
Conservation
Conservation areas are lands protected by state or federal authorities due to their ecological, natural, or cultural value. These areas play a crucial role in preserving biodiversity, maintaining healthy ecosystems, and providing recreational opportunities. Examples of conservation areas include national parks, wilderness reserves, and protected landscapes.
Preservation
Preservation areas are also protected lands under state or federal jurisdiction. Unlike conservation areas, preservation focuses on protecting buildings, objects, and landscapes rather than natural resources. Historical buildings, national monuments, and cultural landmarks fall under the category of preservation.
Wetlands
Wetlands are areas comprising marshes, swamps, bogs, and fens. They serve as habitats for a wide range of protected species and vegetation. Wetland areas are crucial for maintaining ecological balance and are often protected by local governments due to their importance in preserving natural ecosystems.
Tundra
Tundra is the coldest biome, characterized by low temperatures, little precipitation, and limited vegetation. Tundra lands are often covered by permafrost, a layer of permanently frozen soil. While tundra land may have limited commercial value, it may contain valuable mineral resources.
Perennial Snow and Ice
Perennial snow and ice refer to mountainous landscapes that retain snow throughout the year. These areas are often found in high-altitude regions and are part of the tundra biome. Perennial snow and ice contribute to the unique characteristics of alpine environments.
Desert
Deserts are characterized by arid conditions and receive less than 20 inches of rainfall annually. They cover approximately 20% of the Earth's land surface. Deserts can be classified as hot and dry, semiarid, coastal, or cold. These areas have limited plant and animal life and are not suitable for extensive agricultural activities.
Grassland
Grassland refers to land areas characterized by grasses and moderate rainfall. There are two main categories of grasslands: temperate and tropical. Temperate grasslands are found in regions further from the equator, while tropical grasslands, also known as savannas, are located near the equator.
Agricultural
Agricultural land is used for farming and crop production. It encompasses areas dedicated to growing crops, such as wheat, barley, fruits, or vegetables. It also includes grazing land for livestock such as cattle, horses, sheep, or poultry. Agricultural land plays a vital role in food production and supports various farming activities.
Forest
Forests are areas covered by dense vegetation and contain a diverse range of plant and animal species. They receive ample rainfall and provide habitats for various wildlife. Forests are classified into tropical, temperate, and boreal forests, each with unique characteristics and biodiversity.
Barren Land
Barren lands are characterized by bare, exposed rock landscapes, dry salt flats, sand dunes, or gravel pits. They usually have limited agricultural or development value, except in cases where valuable minerals are present. Barren lands offer little habitat for plant and animal life.
Water Areas
Water areas include land located on or near bodies of water, such as oceans, lakes, or rivers. These areas offer scenic beauty and recreational opportunities like fishing, boating, or swimming. Waterfront properties are highly sought after due to their aesthetic appeal and potential economic value.
Urban Land
Urban land refers to human-developed areas where most people live and work. It includes residential, commercial, and industrial areas. Urban land may vary in density, ranging from high-rise city centers to suburban communities. The value of urban land is determined by its potential for developed use.
Conclusion
Understanding the various land types and terminology is essential for real estate investors. Each land type has unique characteristics and offers different possibilities for development, agriculture, or preservation. Whether you're interested in farming, ranching, or urban development, having a comprehensive understanding of land types will guide your investment decisions and enable you to make informed choices in the industry.
This article provides an overview of common land types and terminology. There are many more specific land classifications and associated terms, but this serves as a foundation for your real estate journey.
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