(a) A residential real property inventory is one or more platted lots or tracts, and improvements, if any, meeting the following criteria:
  (1) they are under the same ownership;
  (2) they are contiguous to one another or are located in the same subdivision of development;
  (3) they are held for sale in the ordinary course of business;
  (4) they are subject to zoning restrictions limiting them to residential use, or, if not subject to zoning, they are:
    (A) subject to enforceable deed restrictions limiting them to residential use; or
    (B) their highest and best use is as residential property;
  (5) they have never been occupied for residential purpose; and
  (6) they are not presently leased or producing income.
(b) A residential real property inventory shall be appraised as a unit at the price for which it would transfer to another person continuing the business, using generally accepted techniques for the appraisal of subdivisions and similar properties.

Source Note: The provisions of this §9.4013 adopted to be effective August 22, 1988, 13 TexReg 3877; transferred effective November 26, 1991, as published in the Texas Register September 18, 1992, 17 TexReg 6481.