Certified Residential Appraiser Practice Exam

Which term describes land that cannot be separated from the property and has no independent highest and best use?

1. Excess Land

2. Assemblage

3. Surplus Land

4. Wetlands

The correct answer is: Surplus Land

The term that accurately describes land that cannot be separated from the property and has no independent highest and best use is surplus land. Surplus land is a portion of a property that is not needed for the highest and best use of the property as a whole. While it may not contribute to the value of the property independently, it remains part of the overall real estate asset. Excess land, in contrast, refers to land beyond what is necessary for the current use of the property and can potentially be developed or sold independently. Assemblage involves the combining of two or more adjacent properties into one larger parcel, with the intention of creating a higher value due to improved use or development. Wetlands are specific environmentally designated areas and do not inherently describe the concept of land usefulness or its relation to a property's highest and best use. Understanding surplus land is crucial for appraisers as it affects property valuation and marketability. Appraisers need to differentiate between land that can be developed or sold independently and land that simply serves as an accessory to the property's primary use.