What defines a Paper Lot in real estate?

A Paper Lot in real estate is defined as a vacant lot that has received zoning approval. This means that the lot has been officially designated for a specific use by local zoning regulations, allowing for construction or development to take place in accordance with these regulations. While the lot may not yet have any physical structures built on it, the zoning approval signifies that the land can be utilized for the intended purpose, making it a viable option for future development.

Other options may seem relevant but do not capture the specific criteria that classify a Paper Lot. For example, completed lots with construction imply that the lot is already developed and used, while delinquent tax lots refer to parcels that have not had their property taxes paid, which does not inherently involve zoning approval. Lots pending sale might still be in a transaction process but do not provide any assurance regarding zoning, thus lacking the critical factor of designated use that defines a Paper Lot.