Dictionary of Business Terms: unimproved property
unimproved property
land that has received no development, construction, or site preparation so that it qualifies for capital gain or loss treatment (that is, raw land). Improvements to property cause the property to receive ordinary income treatment as inventory of a dealer.
Dictionary of Real Estate Terms: unimproved property
unimproved property
land that has received no development, construction, or site preparation.
Example: O'Brien is subdividing a tract of land and selling lots to investors. In all marketing materials, O'Brien must disclose the fact that the land is unimproved property that must receive extensive development before being suitable for urban uses.
