improvement

In property and real estate law, an improvement is any positive permanent change to land that augments the property’s value. An improvement will cause positive change to the land, increase the value, and will allow the landowner to make productive use of the property. Common examples are adding permanent buildings and other structures, or making an addition to an existing building. Renovating or repairing an existing structure would also be an improvement. Examples typically include the addition of foundations, driveways, utility services, other engineering structures, etc. When a title to the land is transferred, the improvement would be transferred along with it. The value of improvement is a core element of the value of the property. Also, tenants in common do not have to pay for permanent improvements on the common property.

[Last updated in April of 2022 by the Wex Definitions Team]