Land Use

Question 1

5 Economic Characteristics of Land (D.U.S.T.S)

Answer 1

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!

Question 2

3 Physical Characteristics of Land

Answer 2

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.

Question 3

Personal vs Real Property

Answer 3

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

Question 4

MARIA

Answer 4

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

Question 5

Annexation

Answer 5

Changes personal property to real property

Question 6

Severance

Answer 6

Changes real property to personal property

Question 7

Trade fixture

Answer 7

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!

Question 8

Zoning law regulations (H ADULTS)

Answer 8

• Use of the land
• Lot sizes
• Types of structures
• Building heights
• Setbacks
• Density
• Types of animals allowed on lot

Question 9

Environmental disclosures (CALMER UGUW)

Answer 9

Carbon Monoxide
Asbestos
Lead based paint
Mold
Electromagnetic Fields
Radon

Urea-formaldehyde
Groundwater contamination
Underground storage tanks
Waste disposal sites

Question 10

Eminent Domain

Answer 10

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.

Question 11

Condemnation

Answer 11

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.

Question 12

Special Assessment

Answer 12

HOA fees, or local taxes used for utilities, road maintenance, and other services

Question 13

Special Assessment District

Answer 13

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.

Question 14

Ad Valorem

Answer 14

**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.

Question 15

Riparian Rights

Answer 15

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.)

Question 16

Littoral Rights

Answer 16

(Seashore and beaches): Along large NAVIGABLE lakes and oceans, one owns to the average high water mark.

Question 17

Doctrine of Prior Appropriation:

Answer 17

A state’s government can give permission to a non-adjacent landowner for crop IRRIGATION and other uses.
A theory of water law based on the principle restated as “first in time is first in rights,” with regard to the right to divert water from a water source. The theory is that if available water were equally divided among all potential users, there would not be an adequate supply to produce anything; but if the water were concentrated in a few, then at least something would be produced. Generally, these rights are along the Colorado and Rio Grande Rivers.

Question 18

Water Information & Air Rights

Answer 18

Accretion - increase of land;
Erosion - decrease of land;
Avulsion – “sudden” loss of land from natural causes;
Reliction - Increase in land due to the receding of water from the shore;
Alluvial plain - area where soil deposits from river;
Alluvion- accumulation of soil from the movement of water.

Question 19

Horizontal property act

Answer 19

Condo air space ownership

Question 20

Fee simple title

Answer 20

Type of ownership in which the person owns the maximum interest a person can have in a piece of real estate

Question 21

Livery of Seisin

Answer 21

Selling the entire bundle of rights