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What is a Paper Lot in real estate?

Updated: 9/17/2023
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A paper lot refers to undeveloped land that exists only on paper as streets and lots. Paper means that while it was planned and sometimes the plans were recorded, the development was never completed as shown on the plan and the paper lots and street don't really exist as such.

For example, suppose a couple owns a few acres of inherited property and had a surveyor plot out a small subdivision. They recorded the subdivision plan in the land records. A few weeks later the real estate market collapsed. No lots were ever sold. Those lots could be referred to as paper lots and anyone who deals with real estate would know what was meant. There are different categories of paper lots and streets and they can sometimes create a legal quagmire.

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