Contiguous Lots
Definition and meaning of Contiguous Lots in real estate.
Contiguous lots are parcels of land that share a common boundary line or border with one another. These lots are physical neighbors and touch directly at one or more points without any separating land or public right-of-way.
In more detail
Investors and developers frequently purchase contiguous lots to combine them into a larger single parcel, a process known as assemblage. Combining lots can increase the overall development potential and value of the land, as larger parcels can accommodate larger buildings or subdivisions. However, easements, zoning ordinances, and local utility access can affect how these lots can be used. Buyers should verify if the lots can be legally merged under local zoning regulations before purchasing.
Key facts
| Category | Property Types & Construction |
|---|---|
| Also known as | Adjoining parcels or abutting land |
| Key process | Assemblage (combining parcels to increase value) |
| Watch out for | Easements, separate tax ID numbers, and zoning restrictions |
An investor purchases several contiguous lots on a city street block to build a single apartment complex that spans all the parcels of land.
Frequently asked questions
Are contiguous lots automatically considered one property?
No, they remain separate legal parcels with their own tax identification numbers until the owner undergoes a formal lot consolidation process with the local government.
Why would a buyer want to purchase contiguous lots?
Buyers do this to increase privacy, build larger structures, or hold the land for future development and subdivision, which can yield a higher investment return.