Real Estate Council of Alberta Fundamentals Practice Exam

Which principle asserts that when land is transitioning to a different use, one use cannot be allocated to the land if another is designated for the building?

1. Principal of Surplus Productivity

2. Principal of Competition

3. Principal of Consistent Use

4. Principal of Contribution

The correct answer is: Principal of Consistent Use

The principle that asserts when land is transitioning to a different use, one use cannot be allocated to the land if another is designated for the building is known as the Principle of Consistent Use. This principle emphasizes that land should be used in a manner that is consistent with its highest and best use as well as with existing zoning and regulations. When a specific use has been designated for a property, it creates a framework within which the property must operate. For example, if a piece of land is zoned for residential use, it cannot be repurposed for industrial use without going through a rezoning process. This ensures that all land uses align with local planning and development regulations, promoting orderly and harmonious development within the community. The other principles, such as Surplus Productivity, Competition, and Contribution, focus on different aspects of real estate economics but do not directly address the functionality and zoning compatibility of land uses in the way that the Principle of Consistent Use does.