CH3: Controls & Encumbrances on Ownership Flashcards
allodial system
anyone can hold ownership in land
4 powers of government (PETE)
Police Power
Eminent Domain
Taxation
Escheat
most common government powers to affect people
police power
taxation
police power
constitutional power of gov. to enact and enforce laws that protect the public’s health, safety, morals and general welfare
- broadest of all
- powers are - zoning laws, building codes, subdivision regulations, and environment protection laws
zoning laws
- police power
- land use controls that impact real estate since they may limit (or enhance)development and property values
- segregate different land types in different zones
- regulate types of activity in different areas
- divide categories of buildings (residential, commercial, industrial, agricultural)
Exceptions to zoning law: nonconforming uses
- when land use does not conform but is allowed b/c the land was established before new laws enacted
Exceptions to zoning law: variances
grants permission to a property owner by the zoning authority, allowing some deviation due to:
- area variance (building size, height limits, setbacks, side yards)
- use variance (use that is prohibited) (must apply to appropriate board)
Exceptions to zoning law: conditional uses
land usages that don’t comply for it’s location but are permitted b/c they benefit the public good
- schools, hospitals, churches, cemeteries
re-zoning
- revision to zoning law
- involves: review by planning authority, public hearing, approval by the jurisdictional body
Spot zoning
re-zones small or individual land parcels rather than entire zone area
Building Codes
police power
established standards for construction and materials
enforced through permit system
must bring buildings “up to code” when new codes pass
Americans w/ disabilities ADA
applies to many public buildings
- handicap parking spaces
- wheelchair ramps
- accessible bathrooms
- widened doors and hallways
- elevators
Subdivision regulations
- laws before land can be subdivided
- authorities use to control land use
- may govern lot size, location of streets, sidewalks, sewer, and water lines
- may require developer to provide open spaces and recreational areas within subdivision
Environmental protection acts
- clean air act (EPA regulate air pollution)
- clean water act (adequate treatment facilities)
- national environmental protection laws (EIS impact on energy consumption, sewage systems, school pop, drainage, water facilities, and other environmental, econ, and social conditions)
Eminent Domain
gov’s constitutional power to take or condemn private property for public use (5th amendment) RIGHT TO
condemnation
ACT OF taking private property for public use w/just compensation
real estate taxation definition
- also known as ad valorem tax (according to value)
- extra taxes in form of levies support additional operations like schools, public health services, libraries, police and fire protection etc
Real estate tax equation
Appraisal Value * Assessment Ratio = Assessed Value
(Assessed Value/1000) * Mills = annual tax
Special Assessment
- type of tax when expenditures are made at some level of gov. for improvements that benefit a property(ies)
- owners who benefit divide cost and share in paying for it
Eschat
gov power that provides for property ownership to pass on to the state when a property owner dies w/o living heirs
intestate
decedent didn’t have a last will and testament
encumbrances
non-possessory interests in real property
covenant
a binding promise to do/not do something
restrictive covenant
binding promise concerning use of real property (breaking doesn’t jeopardize title) (runs with land)
CC and R’s - covenants, conditions, and restrictions
- to keep subdivision attractive/protect market value
- can expire if not preserved
- can have a term date
easements
- right to use property for a particular purpose
- created by written agreement or by action of law
license
revocable permission to use another’s land
can’t be assigned
appurtenant easements
burden on one parcel of land to benefit another
- runs with land
- land in benefit = dominant land
- land burdened = servient land
easements in gross
benefits only a person, not land
ex: electric co enters property to fix something w/o owner’s permission
creation of easements
can be voluntary or involuntary
easements by express reservation
- created in a deed to divide property
- transfers servient tenement to buyer
- retains dominant tenement for seller
easements by express grant
created in deed, either party my request easement
easement by implication
created by operation of law when land is divided if there is a long-standing apparent use necessary for enjoyment of dominant tenant
easements by necessity
when a property would be completely useless w/o easement
easement by prescription 3 conditions
- open and notorious use of land
- hostile and adverse
- continuous for specified number of years
Termination of easements
1 release
2 Merger
3. abandonment
4. failure of purpose
Liens
non-possessory financial interests in property
voluntary liens
ex: mortgages, derivatives like home equity credit lines
Involuntary liens or statutory liens
operation of law w/o consent, can be general or specific
vendor’s lien
involuntary, specific
secures payment of balance of purchase price for real estate if real estate buyer doesn’t pay in full at closing
mechanic’s lien
involuntary, specific
claimed by someone who performed work or specific materials for real property
judgement liens
involuntary, general
attach to a person’s property as a result of court action
tax liens
involuntary, specific
liens on real property to secure payment of real estate taxes
Special assessments
Involuntary, specific lien
taxes used to pay for public improvements
- owners who benefit will pay their share of it’s cost
IRS Lien
involuntary, general
attaches lien to all of taxpayer’s property
attachment liens
intended to prevent transfer of property pending litigation
