Legal Definitions - unearned increment

Definition: Unearned increment refers to an increase in the value of property or assets that is not a result of any effort or work by the owner. It is an increase in value that occurs due to external factors such as changes in the economy, population growth, or government policies.

Examples:

• When a property owner experiences an increase in the value of their property due to the development of new infrastructure, such as a new highway or public transportation system, this is an example of unearned increment.
• Another example is when a property owner experiences an increase in the value of their property due to a change in zoning laws that allow for more profitable use of the land.

These examples illustrate how unearned increment can occur due to external factors that are beyond the control of the property owner. In both cases, the property owner did not do anything to directly increase the value of their property, but rather benefited from changes in the surrounding environment.