Land Use & Zoning

The concept of 'highest and best use' in real estate means:

AThe use that generates the most tax revenue for the municipality
BThe legally permissible, physically possible, financially feasible, and maximally productive use✓ Correct
CThe use designated by the current zoning ordinance
DThe use preferred by neighboring property owners

Explanation

Highest and best use is the use that is legally permissible, physically possible, financially feasible, and maximally productive — the use that produces the greatest value for the land.

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