AutoCAD objects that you can convert to parcels include polygons, closed polylines, and other closed sequences of lines or arcs.
Select objects in the current drawing or from an xref. The objects you select must be free of drawing errors, such as gaps at intersection points.
Tutorial: Creating Parcels from AutoCAD Objects
You can enter xref to select an object from an xref. The xref command supports multiple selections.
Click OK and the parcels are created.