Oregon 30-Hour Real Estate Law Practice Test

What does FAR, or floor-to-area ratio, include?

1. Only the main structure on a lot

2. A portion of the lot's unbuildable space

3. All of the habitable structures on a lot

4. Only the commercial structures on a lot

The correct answer is: All of the habitable structures on a lot

The concept of floor-to-area ratio (FAR) is a crucial measurement in real estate that reflects the relationship between the total floor area of a building and the area of the lot on which it is situated. This ratio is essential for understanding the density of building development in a given area. FAR includes all habitable structures on a lot, which encompasses the entire effective floor space of a building that can be used for human occupancy. This typically refers to the sum of all floors within a building that are usable, which means anything that contributes to the usable square footage, but it does not account for areas specifically excluded by zoning regulations, such as parking or uninhabitable zones. In contrast, the other options focus on specific subsets of this area. For instance, only considering the main structure limits the calculation of density to singular buildings, while a strict exclusion of unbuildable space or focusing only on commercial structures could misrepresent the overall density and development potential of the entire property. This makes the inclusion of all habitable structures on a lot a more comprehensive and accurate understanding of how FAR operates in real estate.