Module 6 - Controls of Ownership Flashcards
What are the four government controls on ownership?
Taxation
Eminent domain
Police power
Escheat
What is Ad Valorem Tax?
Ad valorem tax - when real estate is taxed based on its property value
An assessor determines the assessed value for the properties in his taxing district.
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Generally, the assessed value is based on the market value of the property as determined by the assessor. The assessor then applies a ratio to the market value to derive the assessed value.
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The budgets of the local government and the school district determine whether taxes will go up or down. In other words, if the budgets remained static and the assessor increased the taxable value of all properties across the board by 10%, the taxes would remain unchanged. That is because the tax rate (known as the mill rate) would be lowered by 10%.
What is betterment tax?
If a group of properties requires new streets, new concrete curbs, and perhaps new city sewer and water lines, the municipality can assess the cost of these improvements to the property owners who are benefited by them.
In some states, municipalities are not allowed to assess an amount to the properties affected that is greater than the benefit derived from the installation of the improvements. Appraisers are sometimes called in to settle disputes in these types of assessments. The appraiser will compare the market values of individual properties with and without the improvements specified by the special assessment.
What is a Pending Assessment? And how can it affect the value of a property?
When a municipality plans improvements that will cost property owners money, this potential future expense is initially called a pending assessment. This means the government has identified the need for the work, but they haven’t yet calculated the precise amount each property owner will be required to pay. This lack of a concrete figure creates uncertainty. If the planned improvement is substantial, suggesting a significant cost to homeowners, this pending assessment can negatively impact property values. Potential buyers become aware of the future financial burden, which can make the property less attractive.
Once the municipality completes its calculations and officially records the exact cost to each property owner, the assessment transitions from a ‘pending’ status to an assessment of record. At this point, the financial obligation is known and documented.
Appraisers, when determining a property’s value, generally operate under the assumption that all existing special assessments have been paid. This simplifies the appraisal process and reflects the property’s current financial state. However, if a significant pending assessment exists, the appraiser is obligated to consider its potential impact on the property’s value. The future financial burden represented by the pending assessment can lead to a lower appraised value, as it reflects the additional cost a buyer will face.
What is an assessment of record?
Once the municipality completes its calculations and officially records the exact cost to each property owner, the assessment transitions from a ‘pending’ status to an assessment of record. At this point, the financial obligation is known and documented.
Appraisers, when determining a property’s value, generally operate under the assumption that all existing special assessments have been paid. This simplifies the appraisal process and reflects the property’s current financial state. However, if a significant pending assessment exists, the appraiser is obligated to consider its potential impact on the property’s value. The future financial burden represented by the pending assessment can lead to a lower appraised value, as it reflects the additional cost a buyer will face.
What is Eminent Domain?
This is the right of the government to acquire private property for public use. The government power is called eminent domain but the process that carries it out is called condemnation.
What is the right called when the government can acquire private property for public use
Eminent Domain
Condemnation
The name of the PROCESS by which a government entity exercises its power of eminent domain to take private property for public use.
What is a Comprehensive Master Plan?
Most developing communities have a comprehensive master plan that provides direction on how the city or county should develop. In other words, the plan outlines where industrial parks, high-density residential areas, or recreational areas such as parks and sports areas should be located. If the city doesn’t plan ahead for these things, chaos can ensue in long-term development.
Comprehensive plans are a form of police power used to control growth and
development. A comprehensive plan might include the following elements:
Which plan outlines where industrial parks, high-density residential areas, or recreational areas such as parks and sports areas should be located. If the city doesn’t plan ahead for these things, chaos can ensue in long-term development?
A form of police power used to control growth and development. A comprehensive plan might include the following elements:
The comprehensive master plan
What is a buffer strip in zoning?
A buffer strip allows for open space between two land uses. In other words, you want to have some sort of buffer between commercial and residential properties.
What is Spot Zoning?
Spot Zoning is when a city allows a special use of land in one specific place that doesn’t follow the usual rules for that area. It’s like making a single exception to a general rule. Cities should be careful about doing this too often because it can create problems.
What is it called when a city allows a special use of land in one specific place that doesn’t follow the usual rules for that area
Spot Zoning
What is the open space between two land uses. In other words, between commercial and residential properties.
A buffer strip
What is Zoning Variance?
Zoning variance - is like a special permission slip. Imagine your city has rules about how you can use your property (like building a house, running a store, etc.). A zoning variance lets you break one of those rules for your specific property. For example, if the rules say houses have to be 20 feet from the street, but yours is on a weird-shaped lot, you might ask for a variance to build closer.
What is the permission granted by a local government that allows a property owner to deviate from the strict rules of the existing zoning ordinances.
Zoning Variance
What does it mean when a building is Legally Nonconforming?
Legally nonconforming means a building or business was okay under old rules but isn’t allowed under new rules. For example, imagine a store was built in a place that’s now only for homes. It can stay there because it was there first (grandfathered in), but if it burns down, it usually can’t be rebuilt as a store.
Zoning regulations are rules that dictate how land can be used in a particular area. They control things like:
* The types of buildings allowed (residential, commercial, industrial).
* Building size and height.
* Setback distances from property lines.
What is it called when a building was grandfathered in an area that is no longer legally allowed under new rules?
eg. If a store was built in a place that’s now only for homes.
Legally Nonconforming
What are the four building codes used in the United States?
Building codes are another form of police power intended to protect public health and safety.
It’s important to understand that building codes in the United States are complex and involve a system of model codes that are then adopted and modified at the state and local levels. However, the most prevalent and influential codes come from the International Code Council (ICC).
- International Building Code (IBC)
- International Residential Code (IRC)
- International Fire Code (IFC)
- International Energy Conservation Code (IECC)
- These “I-Codes” from the ICC are model codes. State and local jurisdictions adopt and may amend them to fit their specific needs.
- In addition to these, there are other important codes, such as the National Electrical Code (NEC), which is widely used for electrical installations.
- It is also important to remember that the ADA(Americans with Disabilities Act) also sets codes for accessibility.
International Building Code (IBC)
International Building Code (IBC):
This is a comprehensive code that regulates the design and construction of most commercial and large residential buildings.
It covers a wide range of topics, including structural integrity, fire safety, and means of egress.
What is the code that regulates the design and construction of most commercial and large residential buildings?
International Building Code (IBC)
What is the International Residential Code (IRC)?
International Residential Code (IRC):
This code specifically addresses the construction of one- and two-family dwellings and townhouses.
It provides simplified requirements for residential construction.
Which code addresses the construction of one and two family dwellings and townhouses?
International Residential Code (IRC)
What is the International Fire Code (IFC) used for?
International Fire Code (IFC):
This code focuses on fire safety, including fire prevention, fire protection systems, and hazardous materials.
It works in conjunction with the IBC to ensure life safety.
Which building code focuses on fire safety, including fire prevention, fire protection systems, and hazardous materials?
International Fire Code (IFC)
International Energy Conservation Code (IECC)
International Energy Conservation Code (IECC):
This code sets minimum requirements for energy-efficient building design and construction.
It aims to reduce energy consumption and promote sustainability.
National Electrical Code (NEC)
used for electrical installations.
What is a certificate of occupancy?
A Certificate of Occupancy (CO) is a legal document issued by a local government agency or building department that certifies a building or structure complies with all applicable building codes and zoning ordinances and is therefore suitable for occupancy.
``` **General guidance of land use** Examples. Residential, agricultural, business, industry, traffic and transit, parks and recreation, watershed management, etc.
**Housing needs** Examples. Single-family and multifamily at various density levels, rental housing, senior housing, renewal projects
**Transportation** Examples. Highways, public transit, pedestrian/bikeway, parking spaces
**Community facilities** Examples. Schools, libraries, recreational facilities, police and fire stations, hospitals, waste treatment plants, public utilities
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Energy conservation
Examples. Designs favorable to reducing energy consumption and
including the use of renewable energy sources, high-performance and
green sustainability building practices
What is Escheat?
Escheat - If someone dies without a will and no heirs can be found, the state doesn’t want this property to be in a state of limbo (i.e., a property without an owner). Therefore, a law was created that if a property has no owner, the property must escheat to the state.
If someone dies without a will and no heirs can be found, the state doesn’t want this property to be in a state of limbo, what is it called when it goes to the state?
Escheat
Testate
Testate is the condition of dying with a valid will and in that case there are no problems.
The condition of dying with a valid will and in that case there are no problems.
Testate
What is Intestate
Intestate is when the police power of escheat actually can take place because that is the condition of dying and not leaving a valid will.
What is it called when the police power of escheat actually can take place because that is the condition of dying and not leaving a valid will.
Intestate
Police Power
Protecting Everyone:
The government uses its “police power” to make rules that keep people healthy, safe, and generally well.
Treating Everyone Fairly:
These rules must apply equally to everyone. They can’t target or discriminate against specific people or groups.
Not Taking Property:
The rules shouldn’t drastically lower a property’s value to the point where it’s like the government is taking it without paying.
Helping the Community:
The rules should benefit the public as a whole, not just a few individuals.
What is Zoning and Zoning Ordinances?
Zoning.
Public regulation of the use of private land through application of
police power; accomplished by establishing districts or areas with uniform
requirements relating to lot coverage, setbacks, type of improvement,
permitted activities, signage, structure height, minimum lot area, density,
landscaping, and other aspects of land use and development. (Bold added
for emphasis)
a. Zoning ordinances are local laws that implement the comprehensive
plan and provide regulation and control of land and structures within a
specified district.
b. Police power in action—The following items are some of the issues that
can be controlled through zoning ordinances.
Building type
Building height
Building style/appearance
Natural resources protection
Permitted uses
Setbacks
Lot size
Density
c. General zoning has broad classifications with divisions such as low,
medium, and high density; or in the case of industrial classifications, light
and heavy density. General zoning classifications may include
Agricultural
Residential
Commercial
Industrial
Mixed use
Public
d. Specialized zoning can include airports, waterfront properties, planned
developments, and historic districts to name a few.
