Certified Residential Appraiser Practice Exam

What process involves merging two separately owned lots under one owner?

1. Assemblage

2. Allocation Method

3. Extraction Method

4. Surplus Land Management

The correct answer is: Assemblage

The process of merging two separately owned lots under one owner is known as assemblage. This method is commonly used in real estate to increase the value of the combined properties, as they can be developed together more effectively than individually. By bringing together multiple parcels, the owner can create a larger, more functional land area that can often be sold or developed at a higher value than the sum of the individual lots. Assemblage typically occurs when a property owner acquires adjacent or nearby parcels to enhance property value, increase development potential, or meet specific needs, such as zoning requirements or development plans. This approach aligns well with urban planning and development strategies, allowing for more efficient use of land. The other methods listed, such as the allocation method, extraction method, and surplus land management, do not involve the merging of lots under one ownership. Instead, they are different techniques related to assessing value, analyzing land use, or managing property surplus but do not focus on the act of combining ownership of multiple lots into a single entity.