Limitations on Property Rights Flashcards
P.E.T.E
P - Police Power aka local zoning ordinances and building codes
E - Eminent Domain - the right of government to force the sale of the privately-owned property if it is in the public interest
T - taxes - municipal property taxes
E - Escheat - the reversionary interest the state maintains in all privately owned property
Police Power
The right of government to regulate private activity if it’s in the public interest to do so. In real estate, police power usually refers to the local zoning ordinances and building codes
Eminent Domain
the right of the overnemnt to force sale of privately owned property for public interest
Escheat
The reversionary interest the state maintains in all privately owned property. If a property owner dies without a will or the property transfers to government
Condemnation
The legal process for taking the land by eminent domain
severance damage
portion of land is taken by eminent domains
inverse condemnation
the property owner can claim compensation when their land value diminishes.
Zoning
Regulating and controlling land use.
MA zoning laws in Chapter 40A (Zoning Enabling Act)
Three ways of bypass zoning
Nonconforming Use
Variance
Conditional Use Permits (Special Use Permits)
Building codes
Define basic requirements for construction without necessarily prescribing implementation, must have smoke detectors that meet the state standards
Nonconforming Use
A legal use that existed prior to the enactment of current zoning ordinances even if structure was legal when it was built
Variance
Special permission to do something otherwise forbidden by the zoning rules.
Conditional Use Permit
Limited variance
- Allows a commercial or residential use that would not otherwise be permitted in an area with the caveat that you are restricted to a specific use case that is deemed to be in the public interest.
- Towns usually use these permits instead of variances (also called converted use properties.
Certificate of occupancy
Shows builing has been inspected and satisfy building codes
Property Taxes
Taxes are paid to the town or city where a property is located
Calculated against the assessed value or tax value o property.
Special Assessments
Any imporvments to your property in accordance to their frontage
Special Districts
might used levy additional property taxes, used as a charge property owners in the district extra taxes for services they personally benefit from
Eminent Domain
A government limitation; the right of govenment to force the sale of a privately owned property if it is in the public interest; government pays owner fair market value
Taxes
A government limitation; municipal property taxes, primary source of revenue for local government
Use
The prupose of which property may be used
Heights
Building heights
Setbacks
The distance from the lot lines before building is permittted
Lot Size
The minimal permissable lot size
Buffer zones
Areas that cannot have anything built; used to ease transition between commercial and residential properties
Condominiums
- Subdivided units containing several different units but that is not subdivided
Cooperatives
Shared units contained within shared common areas
Mixed Use Developments
Properties containing multiple use
Planned Unit Developments
Mixed-use land developments that are often exempt from certain zoning regulations
Nonconforming Use
A way to bypass zoning; a legal use that existed to the enactment of current zoning ordinances; grandfathered under zoning a structure was legal when it was built
Variance
A way to bypass zoning; special permission to do something in a forbidden zone
Conditional Use Permits
a way to bypass zoning; allow a commercial or residential use that would not otherwise be permitted in an area with the caveat that it to be used in a specific way to be in the public interest
Property Taxes Equation
Annual Tax / ((Assessed Value/100)x Milage Rate) = 1
Private limitations
contractual limitations on ownership created by deed or separate agreements
Two types include: covenants and deed restrictions
Covenants
A form of private limitation; Restrictions created by the developer of a subdivision or planned development; recorded in the registry of deeds
Deed Restriction
A type of private restriction; limitations are written into the deed, create a fee simple defeasible estate; if a violation occurs grantor of the deed has right to demand forfeiture of title, meaning ownership
Ways to remove easement appurtenants
Easements are hard to remove
- Combing the two lots into one
- Or if purpose of easement becomes impossible
Conflicts between public and private limitations
When there’s a conflict between private restrictions vs public restrictions the more restrictive one winds
CERCLA
Environmental limitation; Comprehensive Environmental Response, Compensation and Liability Act . Designed to clean up sites contaminated with hazardous substances, and to create liability for those who contaminate properties.
Chapter 21E (Mass Law)
Regulates the transport, storage, and disposal of oil and other hazardous material in accordance with CERCLA
Easements
Rights of way across a neighboring property.
O.N.C.H.O.
Open Notorious Continuous, Hostile, Adverse; if it’s been used openly for 20 years then you have the right of way
Easements Appurtenant
Involve two adjoining lots of land; one owner has right to cross; created by Deed, implication; necessity or Perscription (ONCHO)
Involuntary Liens
Claims against the property that are imposed by a third party
Property Tax Liens
Claims against property or municipal property taxes; taxes paid first before foreclosure
Statutory Right of Redemption
In MA property owners have the right to redemption, or right to pay off debt and regain ownership of property, extends 6 months
Federal Tax Liens
Liens placed against a person for unpaid income taxes
Mechanics Lien
Protection for contractors, allowed to place lien against a property for work they did and were not paid for; only applies for personal property
Judgments
Final ruling by a court of law about who win/loses a court cae
Damages
Monetary compensation to plaintiff (person bringing the suit)
Attachments
A court order seizing property in order to satisfy a possible future judgment; retain ownership of property but property is attached to lawsuit
Assessed Value
Also known as tax value; how the government calculates the property taxes for each home.
What are MA quarterly taxes collected?
February 1st 2/1
May 1st 5/1
August 1st 9/1
November 1st 11/1
Easements Appurtenant
Easements involve two adjoining lots of land; one owner has right of way across other's property Can be created by: 1. Deed 2. Implication 3. Necessity 4. Prescription (ONCHO)
Easements in Gross
Personal easements granted in writing to someone who does not own an adjoining lot
Automatically extinguish when person holding the right passes away
Licenses
Property Right concern
Personal, revocable, and non-assignable permission to enter someone’s property
Encroachments
The intrusion of an improvement onto a neighboring property (ONCHO with a 20 year time frame)
Financial Limitations (Liens)
limitations on your ownership associated with debts or payment obligations
Voluntary Liens
A financial lien; make a piece of property collateral for some debt
Mortgage
Voluntary lien, borrowing money from a ban to purchase real estate
borrower gives ban right to sell their home if they do not pay the loan
Installment Sale Contract
A voluntary lien
Similar to rent to own, states that the buyer make payments until the seller is paid for the property,
Gives better equitable title or a future right to acquire legal
Equitable title
under installment sales contract, buyer can hold an equitable title or a future right to acquire legal title to the property
Involuntary Liens
Claims against the property imposed by some third party
Property Tax Lien
Involuntary lien, claims against the property for municipal property taxes
If the property owner doesn’t pay their taxes the town or city can foreclose the property
*MA property owners have a statutory right of redemption (equity or equitable right of redemption)
Judgements
Final ruling by court of law about who wins and who loses a court case
Federal Tax Liens
Involuntary Liens placed against a person for unpaid income taxes
Attachments
Involuntary lien
Court order seizing property
When a lake dries up what is it called?
Reliction
MATH: Property Taxes Formula
Annual Tax/ ((Assessed Value/1000) x Milage Rate) = 1
Avulsion
separation of land from one area an its attachment to another by water
Fiscal Year
Property Taxes run from July 1st to June 30th
Bi Annual = 11/1 and 5/1
Quarterly = 8/1, 11/1, 2/1, 5/1
