Oregon 30-Hour Real Estate Law Practice Test

What is convertible land?

1. Land that has been newly developed

2. Land near an existing condo project that could be converted to more units

3. Land designated for commercial use only

4. Land that has been sold to private developers

The correct answer is: Land near an existing condo project that could be converted to more units

Convertible land refers specifically to parcels of land that are able to be transformed or repurposed for different uses than what they were originally intended for, particularly for residential development. In the context of real estate, it typically signifies land that is adjacent to existing condominiums or high-density residential areas and holds potential for increasing housing density by allowing more units to be built. This characteristic allows for the possibility of planning and zoning changes that can facilitate the conversion of the land into residential units, thereby addressing housing demand. Convertible land plays an important role in urban planning and development strategies aimed at increasing residential capacity in growing areas without the need to expand into undeveloped land. The other options do not accurately define convertible land. Newly developed land refers to land that has recently been built upon, not necessarily indicating its potential for further development. Land designated solely for commercial use cannot accommodate residential units, thereby lacking the convertibility that defines the correct answer. Finally, while land sold to private developers could theoretically be convertible, this designation does not inherently convey the potential for transformation into residential units as described in the correct answer.