Property Valuation
In Massachusetts, the 'highest and best use' of a property is defined as the use that is:
ACurrently permitted by zoning
BLegally permissible, physically possible, financially feasible, and maximally productive✓ Correct
CThe use desired by the current owner
DThe use specified in the original deed
Explanation
Highest and best use is the reasonably probable and legal use that is physically possible, appropriately supported, financially feasible, and that results in the highest value of the land.
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Key Terms to Know
Deed
A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
ZoningLocal government regulations that control land use by dividing areas into zones specifying permitted uses, building sizes, and densities.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
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