Which of the following correctly describes the four tests required to establish the highest and best use of a property?
Correct Answer
B) Legally permissible, physically possible, financially feasible, and maximally productive
Highest and best use is the reasonably probable use of a property that is: (1) Legally permissible — allowed by zoning, deed restrictions, and other regulations; (2) Physically possible — supported by the size, shape, topography, and access of the site; (3) Financially feasible — capable of generating a positive return; and (4) Maximally productive — the use that produces the highest land value among all feasible options. All four tests must be met in sequence. The current use is not necessarily the highest and best use, and gross income alone does not determine it.
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