Certified Pennsylvania Evaluator Practice Exam

What is Assemblage in property terms?

1. The combining of 2 or more parcels into 1 or more ownerships or uses.

2. When a property is split into multiple ownerships.

3. The assessment of a single property’s value.

4. The appraisal of a single land parcel.

The correct answer is: The combining of 2 or more parcels into 1 or more ownerships or uses.

Assemblage in property terms refers to the process of combining two or more parcels of land into one ownership or use. This practice is often undertaken to create a larger, more valuable piece of property or to enhance development potential. By combining parcels, owners can maximize the overall utility of the land, potentially leading to an increase in value due to the economies of scale and the ability to develop the combined land in a more effective way. This process is distinctive from other concepts in property. The splitting of a property into multiple ownerships is instead referred to as subdivision, which serves a different purpose, often aimed at creating smaller lots for sale or development. The assessment of a single property’s value or the appraisal of a single land parcel focuses on individual properties rather than the benefits derived from combining multiple parcels, which is the essence of assemblage. Understanding assemblage enables one to recognize strategies used in real estate development and investment, highlighting its critical role in enhancing property values.