Land acquisition has its own vocabulary. Whether you're new to the industry or just want a quick reference, this glossary covers the terms you'll encounter most often when working with parcels, zoning, entitlements, and deal structures.

Annexation — The process of bringing unincorporated county land into a city's jurisdiction. Often required before a site can connect to city utilities or receive city entitlements.

APN (Assessor Parcel Number) — The unique identifier a county assessor assigns to every parcel of land. Used to look up ownership records, tax history, and legal documents. Prophetic displays the APN for every parcel.

ALTA Survey — The most comprehensive boundary survey available, required for title insurance on most development transactions. Establishes exact parcel dimensions and flags easements, encroachments, and boundary issues.

Assemblage — Combining multiple adjacent parcels into a single larger site. Often necessary when individual parcels are too small to develop on their own but viable as a combined project. See also: What Is an Assemblage and How to Build One.

Basis — The total all-in cost of the land per lot or per unit: purchase price plus development costs, fees, and carrying costs. "What's your basis?" means what did the land cost you fully loaded.

CC&Rs (Covenants, Conditions & Restrictions) — Private legal restrictions recorded on a property, often by an HOA. Can impose design standards, use restrictions, or setback requirements on top of what zoning requires.

CBSA (Core Based Statistical Area) — The official U.S. government term for a metro area and its surrounding communities. A CBSA groups a central city with the surrounding counties that have strong economic and social ties to it. Used in Prophetic's Jump-To navigation to search by metro area.

CEQA — California Environmental Quality Act. The environmental review process required for most entitlements in California. Can add significant time and cost depending on the scope of review required.

Comp Plan / General Plan — The long-range land use policy document guiding zoning decisions in a municipality. A site that's consistent with the comp plan is generally easier and faster to entitle than one that conflicts with it.

Conditional Use Permit (CUP) — An approval allowing a use that isn't permitted by right under the base zoning. Requires a public hearing and adds discretionary risk — the jurisdiction can deny it or impose conditions.

Density (du/ac) — Dwelling units per acre. The primary measure of residential intensity. "8 du/ac" means 8 homes per acre of net developable land. Zoning codes set maximum density; market conditions and site constraints often push actual density lower.

Due Diligence Period (DD) — The contractual timeframe after signing a Purchase & Sale Agreement during which the buyer investigates the site before being required to close. Typically 60–180 days depending on project complexity.

Easement — A right granted to a third party to use a portion of a property for a specific purpose — utility lines, drainage, access. Easements are recorded on title and restrict how that portion of the land can be developed.

EIR / EA (Environmental Impact Report / Environmental Assessment) — Formal environmental studies triggered by CEQA or SEPA. An EIR is the most comprehensive (and most time-consuming) level of environmental review.

EMD (Earnest Money Deposit) — Cash deposited by the buyer at contract signing to demonstrate commitment. Whether it's refundable depends on where you are in the due diligence period and whether money has "gone hard."

Entitlements — The legal government approvals granting development rights on a parcel. "Fully entitled" means all approvals are in place and the project can proceed to permits. Entitlement is often the highest-risk phase of a development project.

Entitlement Contingency — A contractual right to terminate a PSA if entitlements are not achieved within a defined period. Protects the buyer from being locked into land they can't develop.

Exactions / Dedications — Requirements by local governments to donate land (for parks, roads, public access) or make off-site improvements as a condition of development approval.

FAR (Floor Area Ratio) — Total building floor area divided by lot area. A FAR of 2.0 means you can build floor space equal to twice the lot's total area. Used primarily in commercial and multifamily zoning analysis.

FEMA SFHA (Special Flood Hazard Area) — Land with a 1% annual chance of flooding — commonly called the 100-year floodplain. Generally considered unbuildable without significant and expensive mitigation.

Final Plat / Recorded Plat — The legally recorded subdivision map that creates individual lots of record. Required before building permits can be issued on individual lots.

Finished Lot — A lot that has been graded, has utilities installed, and meets all required improvements — ready for a builder to pull a permit and start construction. Contrast with raw land.

Geotechnical Report (Geotech) — A soils investigation assessing bearing capacity, groundwater depth, expansive soils, and seismic risk. Required by engineers and lenders before design and construction.

GIS (Geographic Information System) — Software used to analyze and visualize spatial data — parcels, zoning, infrastructure, topography, and more. Prophetic is built on GIS infrastructure.

Greenfield — Raw, undeveloped land typically on the suburban or exurban fringe. Lower land cost than infill, but more infrastructure investment required for roads, utilities, and services.

Hard vs. Soft Earnest Money — Soft EMD is refundable during the due diligence period. Hard EMD is non-refundable — the buyer's money is at risk if they don't close. "Going hard" means the money is no longer refundable.

Horizontal Development — The process of converting raw land into finished lots — grading, roads, utilities, drainage, and all required improvements. Horizontal developers do this work; homebuilders then buy finished lots and build on them.

Impact Fees — Per-unit fees charged by local governments at the time of permitting to fund schools, parks, roads, and utilities. Can range from a few thousand to $50,000+ per lot depending on the jurisdiction, and materially affect project economics.

Infill — Development on underutilized or vacant land within an already-developed area. Higher land cost than greenfield but typically shorter entitlement timelines and existing infrastructure.

IRR (Internal Rate of Return) — The annualized return on invested capital. The primary metric developers use to evaluate whether a deal is worth doing. Land deals typically require IRRs of 20% or more to justify the risk and timeline.

Land Banking — Acquiring land to hold for future development or resale rather than developing immediately. Common strategy for firms that finance land for builders.

LOI (Letter of Intent) — A non-binding document outlining proposed deal terms. Usually the first formal step in negotiation — signals serious intent before the parties commit to drafting a binding contract.

Lot Take-Down Schedule — The pace at which a homebuilder takes title to finished lots from a developer, typically in tranches (e.g., 20 lots per month) rather than all at once. Spreads capital deployment and risk for both parties.

Mitigated Negative Declaration (MND) — A finding under CEQA or SEPA that environmental impacts exist but can be reduced to non-significant levels with mitigation measures. Faster than a full EIR.

Net Developable Acres — Gross acreage minus all unbuildable areas: wetlands, floodplain, rights-of-way, required setbacks, and other constraints. The actual land available for lots and roads. Prophetic's SiteAI calculates this automatically.

Off-Market — A property not publicly listed for sale. Off-market deals are pursued through direct landowner outreach — letters, calls, or personal relationships — before the land is widely shopped or listed with a broker.

Option Agreement — A contract giving the buyer the exclusive right to purchase a parcel within a set period for a set price. The buyer pays a fee for the option. Limits capital exposure during the entitlement phase while keeping competitors out.

Overlay Zone — A secondary zoning layer applied on top of the base zoning that adds additional restrictions or requirements — flood overlay, historic preservation overlay, transit corridor overlay, and others.

Parcel — A defined unit of land with a unique APN. The atomic unit of all land analysis — every search, analysis, and project in Prophetic is built around parcels.

Pencil — Developer slang for whether a deal produces acceptable financial returns. "Does it pencil?" means does the pro forma show a return worth the risk and capital required.

Permitted Use by Right — A use allowed under the zoning code without any additional approval process — just pull permits and build. The most favorable entitlement scenario for a developer.

Phase I ESA (Environmental Site Assessment) — A desktop and records review for potential contamination on or near a site. Required by most lenders. Identifies RECs (Recognized Environmental Conditions) that may trigger a Phase II.

Phase II ESA — Subsurface investigation including soil and groundwater sampling, triggered when a Phase I identifies contamination concerns. Significantly more expensive and time-consuming than a Phase I.

Pipeline — A land team's or developer's collection of deals at various stages of evaluation and acquisition. What LRM is built to manage.

Preliminary Plat — A formal map showing the proposed lot layout, roads, and easements submitted to a local government for approval. A key step in the subdivision entitlement process.

Pro Forma — The financial model projecting all costs, revenues, and returns for a development project. The document that answers whether a deal pencils.

PSA / PA (Purchase and Sale Agreement) — The binding contract to purchase land. Includes purchase price, timeline, contingencies, EMD terms, and closing conditions.

RECs (Recognized Environmental Conditions) — Findings from a Phase I ESA flagging evidence of past or present contamination concerns. RECs trigger further investigation and can kill or complicate a deal.

Rezoning / Zone Change — Formally changing a parcel's zoning classification to allow a different or more intensive use. The most time-consuming entitlement path — typically 12 to 36 months depending on the jurisdiction.

ROW (Right-of-Way) — Land dedicated for public roads, utilities, or access. ROW reduces net developable area and is accounted for in Prophetic's SiteAI yield calculations.

Section 404 Permit (USACE) — A permit from the US Army Corps of Engineers required for any development impacting wetlands or navigable waters. One of the more significant time and cost risks in land acquisition.

SEPA — State Environmental Policy Act. The environmental review process used in Washington and most other states (California uses CEQA). Required for most entitlement applications.

Setback — The minimum required distance between a structure and a property line — front, rear, and sides. Setbacks reduce the buildable envelope of a lot and are a key input in SiteAI.

Sphere of Influence (SOI) — The area a municipality plans to eventually annex. Sites within the SOI are candidates for future city services and jurisdiction, which affects entitlement strategy and timeline.

Submarket — A defined geographic area within a broader metro — the granular unit for market analysis. "North Austin" and "East Riverside" are submarkets. Understanding supply, demand, and absorption at the submarket level is essential for underwriting.

Topography / Topo — The elevation contours of a site. Steep topography drives up grading and infrastructure costs significantly and reduces net developable area. Prophetic displays topographic data on the map.

Variance — An exception to a specific zoning standard — for example, a reduced setback or increased height. Requires discretionary approval and typically requires demonstrating hardship. Adds risk and time to a project.

Vertical Development — Construction of the actual buildings on a site. Most national homebuilders handle both horizontal and vertical. Some specialize in one or the other.

Wetlands Delineation — A formal on-site survey by a wetlands biologist that establishes the jurisdictional wetland boundary. Required before most entitlement applications and before SiteAI avoidance areas can be drawn accurately.

Yield — The number of developable lots or units a parcel can support after all constraints are applied — environmental, zoning, setbacks, roads, and open space. Yield is what SiteAI calculates.