Reference

Land Investment Glossary

41 essential terms for raw land investors, from Adverse Possession to Zoning. Built from LandSquatch data covering 198,170+ properties.

1031 Exchange

A tax-deferral strategy under IRS Section 1031 that allows investors to defer capital gains taxes by reinvesting sale proceeds into like-kind replacement property within specified timeframes.

Adverse Possession

A legal doctrine allowing someone to claim ownership of land they have occupied openly, continuously, and without the owner's permission for a statutory period (20 years in Georgia).

Agricultural Exemption

A reduced property tax assessment available for land actively used for agriculture, timber production, or conservation. In Georgia, the CUVA program can reduce assessed value by 80-90%.

Base Flood Elevation

The computed elevation to which floodwater is expected to rise during a 100-year flood event. Structures in flood zones must typically be built above the BFE.

Boundary Survey

A professional survey that establishes the exact legal boundaries of a property by locating the corners and property lines described in the deed.

Buildability Score

LandSquatch's proprietary 0-100 metric that assesses how suitable a parcel is for construction based on topography, soil type, flood zone status, road access, utility proximity, zoning, and septic/well feasibility.

Chain of Title

The complete history of ownership transfers for a property, from the original grant through all subsequent sales and transfers to the current owner.

Comparable Sales

Recent sales of similar properties used to estimate the market value of a subject property. Also called 'comps,' they are the primary method for valuing raw land.

Conservation Easement

A permanent legal agreement that restricts development on land to protect natural, scenic, or agricultural values. Provides tax benefits to the landowner but permanently limits the property's development potential.

Contour Lines

Lines on a topographic map connecting points of equal elevation. Closely spaced contour lines indicate steep terrain; widely spaced lines indicate gentle or flat terrain.

County Sentinel

LandSquatch's county-level market monitoring system that tracks land sales volume, price trends, days on market, inventory levels, building permit activity, and economic indicators across coverage counties.

Deed

A legal document that transfers ownership of real property from one party to another. Deeds are recorded with the county recorder to establish the chain of title.

Due Diligence

The comprehensive investigation and analysis process a buyer undertakes before purchasing property, including title search, survey, soil testing, environmental review, and market analysis.

Easement

A legal right to use another person's land for a specific purpose such as access, utility installation, or drainage. Easements run with the land and transfer to new owners.

Eminent Domain

The government's power to take private property for public use, provided the owner receives just compensation (fair market value).

Encumbrance

Any claim, lien, easement, or restriction that affects the use or transferability of a property. A title search identifies encumbrances that a buyer should know about before purchasing.

Flood Zone

FEMA-designated areas indicating the level of flood risk. Zone X is minimal risk, Zone A/AE is 100-year flood plain, and Zone V/VE is coastal high hazard.

GIS

Geographic Information System — a framework for gathering, managing, and analyzing geographic data. Counties use GIS to map parcels, zoning, flood zones, and other spatial information.

Land DNA

LandSquatch's comprehensive property analysis profile that captures every measurable attribute of a parcel including topography, soil composition, hydrology, access, zoning, environmental risks, and market context.

Lien

A legal claim against property as security for a debt. Common liens include mortgage liens, tax liens, mechanic's liens, and judgment liens. All liens must be resolved before clear title can transfer.

Millage Rate

The tax rate used to calculate property taxes, expressed in mills (one-tenth of a cent). A millage rate of 25 mills means $25 in taxes per $1,000 of assessed value.

Mineral Rights

Ownership of subsurface resources including oil, gas, coal, metals, and other minerals. Mineral rights can be severed from surface rights, meaning the surface owner and mineral owner may be different parties.

Owner Financing

A transaction where the property seller acts as the lender, allowing the buyer to make payments directly to the seller instead of obtaining a bank loan. Common in land transactions.

Parcel

A defined piece of land identified by a unique parcel number in county tax records. Parcels are the fundamental unit of land ownership and are defined by recorded boundary surveys or plat maps.

Perc Test

A percolation test that measures how quickly water drains through soil, determining whether the soil can support a septic system drain field. A failed perc test can make land unbuildable.

Phase I ESA

Phase I Environmental Site Assessment — a review of a property's environmental history through records research and site inspection to identify potential contamination issues.

Plat

A recorded map showing the boundaries, lots, and features of a subdivision or individual parcel. Plat maps are filed with the county and define the legal boundaries of properties.

Rezoning

The process of changing the zoning classification of a property, requiring application, public hearing, and approval by the local governing body.

Right-of-Way

A legal right to pass through property owned by another. Can be public (roads) or private (access easements). Right-of-way width and permitted uses are defined in the recorded easement or plat.

Riparian Rights

Water use rights that belong to owners of land bordering a natural waterway. Under riparian law, these owners may make reasonable use of the water as long as it does not unreasonably interfere with others' use.

Section 404 Permit

A permit required under the Clean Water Act for any activity that involves filling, dredging, or discharging material into wetlands or other waters of the United States.

Septic System

An on-site wastewater treatment system used where municipal sewer is not available. Consists of a tank for solids separation and a drain field for effluent absorption into the soil.

Setback

The minimum distance a building must be from property lines, roads, water features, or other boundaries as required by local zoning ordinances.

Soil Classification

The systematic categorization of soil types based on texture, drainage, and composition. The USDA classifies soils in detailed surveys used for agricultural and construction planning.

Timber Cruise

A professional inventory of standing timber on a property that estimates species, volume, quality, and market value. Essential for determining timber value before purchase or harvest.

Title Insurance

Insurance that protects the property owner against financial loss from defects in the title that were not discovered during the title search, such as forged deeds, undisclosed heirs, or recording errors.

Topographic Survey

A survey that maps the elevation, contours, and physical features of a property including slopes, waterways, and existing structures. Used for site planning and development design.

Variance

An authorized deviation from zoning requirements granted by a local board when strict application of the zoning code would create an unnecessary hardship for the property owner.

Water Rights

Legal rights to use water from a natural source such as a river, stream, or aquifer. In eastern states, riparian rights generally apply; in western states, prior appropriation governs water use.

Wetland

An area where water covers the soil or is present at or near the surface for part of the year. Wetlands are protected under the Clean Water Act and significantly restrict development.

Zoning

Government-imposed land use regulations that determine what can be built or done on a property. Common zones include agricultural (AG), residential (R-1, R-2), and commercial (C).

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