Oregon 30-Hour Real Estate Law Practice Test

Which of the following best defines a subdivision?

1. A single property with multiple owners

2. A tract of land divided into lots for building

3. A large piece of land intended for farming

4. A property with multiple legal descriptions

The correct answer is: A tract of land divided into lots for building

A subdivision is best defined as a tract of land that has been divided into smaller lots for the purpose of building. This definition clearly indicates the purpose and process involved in creating a subdivision, which is typically designed for residential or commercial development, allowing for individual ownership of the smaller parcels created from the larger tract. In real estate, a subdivision often undergoes a formal process involving approvals and regulations to ensure that each lot is suitable for the type of construction planned and that the division complies with local zoning laws. The focus on building lots highlights the intent behind subdivision developments, which is to create new housing or commercial opportunities. While a single property with multiple owners can involve various arrangements such as condominiums or cooperative housing, it does not specifically pertain to the process of subdividing land into separate building lots. Similarly, a large piece of land intended for farming may describe agricultural land but does not address the aspect of dividing land for development. Lastly, a property with multiple legal descriptions indicates complexities in ownership or geographic distinctions but does not capture the essence of a subdivision as defined in real estate development contexts.