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What are contiguous lots?

aerial view of industrial buildings
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Contiguous lots are pieces of real estate that are in contact with or adjacent to each other. These lots share a common boundary, so parcels of land separated by a public street or other lots are not considered contiguous, even if they are owned by the same entity or person.

What are contiguous lots?

In real estate, a lot is a piece of land, or parcel, owned by one or more people or entities. When these lots are adjacent to each other, they are considered contiguous. Commercial developers often develop on contiguous lots in order to create a single large complex.

Depending on the location, a real estate lot can be worth much more than the structures on it. Investors may also acquire these properties in order to replace existing structures with new construction, which drives up the value. A structure on a lot may be designated for principal use, making any buildings on contiguous lots accessories to the principal building.

What are non-contiguous lots or property?

In contrast to contiguous lots, non-contiguous lots or non-contiguous parcels do not share any common boundaries. A non-contiguous lot may also be separated by private streets.

Why do people want contiguous lots?

Often, contiguous lots are desirable for people who want a larger piece of property on which to build. In other instances, acquiring contiguous lots allows people purchasing a home to increase their yard or the property surrounding their home.

Contiguous lots are also attractive to commercial developers who are seeking the space to build larger or more expansive developments. Wholesale real estate investors may also purchase contiguous lots and sell as a portfolio to a developer.

Special issues with buying contiguous lots

States and local authorities have varying regulations governing how contiguous lots are developed. In some cases, the properties may have to be rezoned for the intended use. This means the buyer or developer would need to work with the local government or planning department to ensure that the intended structure meets all applicable regulations. If the contiguous lots fall in a homeowners association area, additional regulations may apply.

Written by
Mia Taylor
Contributing Writer
Mia Taylor is a contributor to Bankrate and an award-winning journalist who has two decades of experience and worked as a staff reporter or contributor for some of the nation's leading newspapers and websites including The Atlanta Journal-Constitution, the San Diego Union-Tribune, TheStreet, MSN and Credit.com.
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