Which of the following correctly identifies the four tests used to determine 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 determined by four sequential tests: (1) Legally permissible — the use must be allowed by zoning, deed restrictions, and applicable law; (2) Physically possible — the land's size, shape, topography, and soil must support the use; (3) Financially feasible — the use must generate an adequate return on investment; and (4) Maximally productive — among all feasible uses, it must produce the highest land value. A use must pass all four tests to qualify as highest and best use.
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