Land Use Flashcards
5 Economic Characteristics of Land (D.U.S.T.S)
DEMAND: The more demand, the more value UTILITY: 3BR>1BR SCARCITY TRANSFERABILITY: When loans are available and rates are low, real estate is readily transferable from seller to buyer SITUS: Location, location, location!
3 Physical Characteristics of Land
IMMOBILE: Real estate is permanent
INDESTRUCTIBLE: Land is permanent
NONHOMOGENOUS (Uniqueness): Each parcel of land has its own unique characteristics. No 2 properties are the same.
Personal vs Real Property
Personal property is readily moveable (ex: furniture), AKA chattels, includes money, goods, evidences of debt, and “choses” things in action or the right to recover it in court.
Personal property becomes real property when it becomes affixed or installed permantly
Fixtures are considered real estate and remain with the house when it is sold. AKA an “appurtenance”/ right/ privilege/ improvement
An agreement for its sale must be in writing if value >$500
MARIA
To determine whether property is real or personal:
Method of attachment (central AC vs window fan)
Adaptability (built in microwave vs on the counter)
Relationship of parties + sale of lease contract provisions (can remove something installed when you were leasing, if a contract states it it overrides other rules)
Intent of the parties
Agreement
Annexation
Changes personal property to real property
Severance
Changes real property to personal property
Trade fixture
A trade fixture is personal property and can be removed by the tenant any time before the end of the lease term. The tenant must repair damage caused by removal of trade fixtures
- Remember, trade fixtures are commercial and considered to be personal property. Fixtures are considered to be real property!
Zoning law regulations (H ADULTS)
- Use of the land
- Lot sizes
- Types of structures
- Building heights
- Setbacks
- Density
- Types of animals allowed on lot
Environmental disclosures (CALMER UGUW)
Carbon Monoxide Asbestos Lead based paint Mold Electromagnetic Fields Radon
Urea-formaldehyde
Groundwater contamination
Underground storage tanks
Waste disposal sites
Eminent Domain
Eminent Domain is the right of the government (federal and state) to take private property for a necessary public use, with just compensation paid to the owner. To take property voluntarily from an owner, the government must do three things:
The property owner must be paid compensation for the property.
The property must be for the public good or use.
The owner must have due process in the courts system.
For example, through eminent domain, the state may acquire land for streets, parks, public buildings, public rights-of-way, and similar uses. No private property is exempt from this exercise of government power.
Condemnation
Condemnation is the process by which property is acquired through Eminent Domain. This takes place when the owner and the government cannot negotiate a satisfactory voluntary acquisition of the property. This is called a “Taking.” Condemnation proceedings may be instituted by all government levels or by public utilities or railroads.
Special Assessment
HOA fees, or local taxes used for utilities, road maintenance, and other services
Special Assessment District
A Special Assessment District is created to finance improvements when no other source of money is available. Assessment Districts are often formed in undeveloped areas and are used to build roads and install water and sewer systems so that new homes or commercial space can be built. Assessment Districts may also be used in older areas to finance new public improvements or other additions to the community.
Ad Valorem
**Ad Valorem: Real property taxes are called ad valorem taxes, which is Latin, meaning “according to value.” Every homeowner pays taxes based on the assessed value of his property. The amount collected is what the municipality needs to pay for services in your community–such as police and fire protection and other services provided.
Riparian Rights
Rivers
Along a NAVIGABLE river, (commercial traffic) one owns to the water’s edge.
Along a NON-NAVIGABLE stream, one owns the land to the center of the stream. (The government owns the water.)