Land readjustment (LR) is an important technique for urban land development in both developed and developing countries. This technique is used for both development of new areas and reorganization of structured areas in urban regions. The efficient application of LR may provide a planned urban development, production of a serviced urban plot, a supply of technical infrastructure and service areas for public use, a significant ease in the solution of ownership problems, the supply of subdivisions with good standards, the possibility of readjustment of land ownership and plot borders, and other benefits. However, the efficient application of LR is contingent on certain basic conditions. In this article, the basic conditions are defined and examined for the successful and efficient application of the LR method within the frame of international literature. The provision of benefits expected from LR rests on the availability of LR models that include the foregoing basic conditions. © 2008 Sage Publications.