Encrumbrances Flashcards
An ___________ is a claim or burden on a property which limits, restricts or otherwise affects one’s right, interest or use of that property. An ___________ is anything which diminishes a person’s rights of ownership. It does not represent ownership of another party’s property. It only grants the right to use a certain property in a certain way, or the right to attach a monetary claim against it.
encumbrance
The state is permitted to encumber real property in four ways. The encumbrances are to protect the rights and interest of the public.
HInt: PP,ED,T,E
Police powers
Eminent Domain
Taxation
Escheats
______ ______: refer to the government’s power to enact and enforce laws to protect the health, safety, morals and welfare of the general public. The state’s authority to enact and enforce is passed on to the municipalities through ________ ____. They can regulate where on a site a building may be built, how it is built, and even if it can be built
Police powers
enabling acts
______ ___________: regulations controlling the use of land to protect property values and promote the health, safety, and welfare of the general public. Local governments create a ______ ____ for the development of the city, and zoning ordinances are used to enforce the plan.
Zoning regulations
master plan
_________ ______: is concerned primarily with the function of land. It is used to
promote the highest and best use of the land.
directive zoning
__________ ______: regulates the size and placement of buildings on their lots, population density, and overall use of space. It also regulates the distance from streets and sidewalks that buildings can be erected, known as ________. Another example would be regulating the number of units in a condominium building relative to the number of parking spaces.
Protective zoning
setbacks
_____________ ___: A building which was built before a zoning ordinance was enacted may not conform to current zoning regulations. This is often allowed to continue until the building is torn down, or the current use of the building is changed.
Nonconforming use
________: Property owners who believe that their interests have been unfairly limited by zoning regulations may present their grievances to the Zoning Review Board. The owner may appeal for a ________, a permit which exempts the owner from a particular zoning ordinance.
Variance
___________ ___ ______: This type of exemption allows the nonconforming use of a property if this use benefits the general public. For example, a power substation may be permitted in a
residential area if it is needed to service the residents there. This is also called a ______ _________.
conditional use permit
zoning exception
__________: A change in zoning from a high density use to a lower density use, for example, from residential to agricultural. There is no compensation to the property owner for any loss in value.
downzoning
______ _____ are created for the purpose of
separating one land use from another. An example would be a park located between a residential area and a commercial area.
Buffer Zones
____ ______: Zoning in which certain portions of a district are set aside for uses other than those for which the district itself is zoned. For example, a busy intersection in a residential district
may be zoned commercial to provide access to stores for the residents.
Spot zoning
________ _____ are enacted to specify the standards for construction of new
buildings and alteration or repairing of old ones.
Building codes
___________ ___________: A developer of a subdivision must submit a subdivision plan, or ____ of ______, showing the proposed location of lots, sewers, roads, utilities, schools, and other public
facilities. The plan must comply with zoning ordinances.
subdivision regulations
plat of survey
_____________ __________ ____: The government’s responsibility to protect and promote the health, safety and welfare of the public extends to the protection of the environment itself. The National Environmental Policy Act of 1970 was enacted to preserve America’s natural resources. Projects authorized or supported by the government in any way must file an environmental impact
statement to become eligible for federal assistance. The act also established the Environmental Protection Agency which has enacted laws to control air quality, water pollution, noise control,
and coastal management.
environmental protection laws
______ and ______ _____: are codes imposed for the protection of the health and safety of the public.
Health and safety codes
____ ________: are government imposed restrictions on the amount of rent an owner can charge. These have been used during war time or to protect against inflation.
Rent controls
______ ___: A municipality’s plan for the future development of the area.
Master Plan
The power of _______ ______ allows the government to temporarily or
permanently claim private property for public use without consent of the owner. This power is typically used to acquire land for roads, schools, hospitals, government buildings, etc. The
government must prove that the property is needed and must pay the owner just compensation, that is, a sum of money equal to fair market value of the property.
Eminent Domain
If an owner refuses the government’s offer of just compensation, the government then must initiate a ___________ ______ in which the government must demonstrate that the property it
wishes to appropriate is needed for public use, and the fair market value must be established.
(* In Louisiana, the term for condemnation is expropriation.)
condemnation action
The power of taxation is exercised in two ways, __ _______ _____ and _______ ___________. This type of encumbrance is an involuntary specific lien. A ____ is a monetary claim upon property which uses the property itself as security for payment of a debt.
taxation
ad valorem taxes
special assessments
lien
A _______ ____ attaches to all of a person’s property, real and personal.
general lien
A ________ ____ attaches only to the property explicitly encumbered by the lien. Property taxes are an example. If not paid, the property may be seized and sold to satisfy the lien.
specific lien
__ _______ _____ are a main source of revenue for local governments. The
term means according to value.
Ad Valorem Taxes
a. First, the market value of the property is established and then multiplied by an
assessment ratio to produce the assessed value.
b. Then the assessed value is reduced by the amount of the homestead exemption, if applicable. (* This amount is $7,500 is Louisiana.)
c. Finally, the assessed value is multiplied by the tax rate or millage to determine the
amount of tax due. The tax rate is calculated by dividing the budget for the district, minus revenue from other sources, by the total assessed value of all property within the district. The formula for taxes is: Tax = Tax Rate X # of 1000’s of assessed value.
Example: A property is assessed at 50,000. The tax rate is 100 mills. The tax equals 100 X 50, or $5,000. If property taxes are not paid, the property will eventually be sold at a tax sale.
Most states use mills to calculate property taxes, but some states use dollars. The formula if using dollars is Tax=Tax Rate ($) X # of 100’s of assessed value.
The Method by which ad valorem taxes are calculated
_______ ___________ are never used by governments to raise revenue. They are imposed only on specific segments of the community, and only at such times
as specific improvements for those segments are deemed necessary. These improvements may include street lights, water lines, curbs, streets, recreational facilities, etc.
Special Assessments
Special assessments may be initiated by the property owners themselves or by the appropriate public body. Public hearings are held in which the affected property owners may express their views. Then an ordinance is passed detailing the nature and cost of improvements. The area
receiving the improvement is called the __________ ________ or _______ ______ _______.
assessment district
special taxing district
A third government power is the power to seize ownerless land. This power is used when a person dies without a will and with no heirs. His property would then _______ to the state.
Escheats
Every State Cheats
_______ _____: Private individuals may also place liens against real property. The most
common ways in which private property is encumbered are through mortgages, mechanic’s liens, vendor’s and vendee’s liens, and court judgments.
(* In Louisiana, a lien is called a privilege).
Private Liens
_________ To mortgage real property is to pledge or hypothecate it as security for payment of a debt or obligation. Properties encumbered by mortgages have ________ _________ _____ placed against them. If the debt is not satisfied the mortgage may be foreclosed and the property sold to satisfy the debt.
Mortgages
specific voluntary liens
A _______ ____ is also a specific voluntary lien. They are used in connection with the ________ _____ ________ (PMM). This is a mortgage arrangement in which the
seller accepts a downpayment from the buyer and gives the buyer a mortgage on the balance owed on the property. To protect his interest in the property, the seller has the right to place a _______ ____ against the property for the outstanding balance. The seller may foreclose if the
buyer defaults on the payments.
Vendor’s Lien
purchase Money mortgage
_______ ____: If a buyer has given a seller a deposit for the purchase of real property and the sales contract has been signed and the seller defaults, the buyer has the right to place a _______ ____ on the property to recover the deposit. The _______ ____ is also enforced by
foreclosure.
vendee’s lien
The _________ ____ protects workmen, contractors, engineers, architects,
suppliers of materials, and others who provide labor or material to build or improve real property. To qualify the mechanic must perform the work with the owner’s consent, and must also give preliminary notice that the property may be attached if the mechanic’s claim is not
paid. When the work is completed, the mechanic must file a notice of completion with the county clerk. The lien must be filed within a specified period of time.
(* In Louisiana, a mechanic’s lien, or privilege, must be filed within 60 days after the last work has been
completed on the project.) The owner’s property may then be attached, and if the debt is not satisfied, may be sold at an execution sale. ________ ____, recorded or unrecorded, take priority over new or second mortgages on a property, If those mortgages were recorded after work on the property began.
Mechanic’s Lien
