Land deals come with their own vocabulary. Here are short, plain-language answers to terms buyers and sellers of vacant land in northern New Jersey run into most often.
What is a perc test?
A percolation test measures how quickly water drains through the soil. On land without public sewer, soil testing is used to determine whether and where a septic system can be designed, so it is often one of the first questions about whether a lot is buildable.
What does road frontage mean?
Road frontage is the length of a parcel's boundary that touches a street. Zoning usually sets a minimum frontage for a buildable lot, and frontage also affects driveway access and how easily a parcel can be subdivided.
What is a setback?
A setback is the minimum distance zoning requires between a structure and a property line or other feature. Front, side and rear setbacks, along with buffers from wetlands or streams, shape where a house can actually go on a lot.
What is a block and lot?
Block and lot numbers identify a parcel on a municipality's tax map. They are used on tax bills, deeds and municipal records, and they are the fastest way to look up a specific property.
What is farmland assessment?
Farmland assessment is a New Jersey program that taxes qualifying agricultural or horticultural land at its farm use value rather than market value. Owners must meet minimum acreage and income requirements and file an annual application.
What is a rollback tax?
If farmland-assessed land changes to a non-qualifying use, New Jersey can assess rollback taxes: the difference between farm-use taxes and full taxes for the year of the change and the two tax years immediately before it.
What is the Highlands Act?
The Highlands Water Protection and Planning Act regulates development in the New Jersey Highlands region, which includes much of Sussex, Warren, Morris and Passaic County. Land falls in either the Preservation Area, with stricter state rules, or the Planning Area, where municipal conformance is voluntary.
What is an easement?
An easement is a right for someone else to use part of a property for a specific purpose, such as a driveway, utility line or drainage. Easements run with the land and show up in a title search, so buyers should know where they are before building.
What is a riparian buffer?
A riparian buffer, called a riparian zone in New Jersey's flood hazard rules, is a protected area of land along a stream or other water. Disturbing it generally requires state approval, and its width depends on the waterway's classification.
What is an earnest money deposit?
An earnest money deposit is money a buyer puts down to show good faith after a contract is signed. When a New Jersey real estate licensee receives deposit money, state rules require it to be placed in the broker's escrow account, and the contract sets out when it is released or returned.
This article is general educational information, not legal, tax, or engineering advice. Rules vary by municipality and change over time, so confirm details with the appropriate local officials and your own professionals.