What are public or government restrictions on real estate? Provide examples of those restrictions. How do these restrictions affect real estate owners? Are there controversial restrictions?
Along with private restrictions on ownership, there are also public restrictions on ownership that the government applies. Here is a link that details some of the public restrictions.
http://faculty.business.utsa.edu/kfairchild/classes/3433/Outlines/OutlineCh4.pdf
These restrictions include:
Government Powers:
Taxation - Property Tax - Tax is levied as a % of value of the property
Eminent Domain - Government can acquire property for public use
Police Power - Enable governments to have the power of regulation to protect the public's health, safety, morals,and welfare.
Zoning - The process of dividing a community’s land into districts in which only certain uses of the land are allowed
Building Codes - are rules that control the design, materials, and methods of construction, and compliance w/them w/in their jurisdiction is mandatory.
These restrictions affect real estate owners beacuse one's real estate can literally be taken away through the government's use of eminent domain. Of course, the owner can be compensated, but if one's land has been in the family for hundreds of years and has sentimental value, that cannot have a price tag on it.
These restrictions are controversial because they are very broad and the government can say just about anything to not allow the owner to use the land as desired or even take the real estate away completely.
Below is a Link to an article talking about eminent domain and if its good or bad in this particular case.
http://realestate.aol.com/blog/2012/07/16/eminent-domain-a-worthy-fix-for-troubled-mortgages/
What do you think? Is eminent domain in this situation hurtful or harmful to the lendors, and homeowners?
Sunday, September 16, 2012
Topic #3 Private Restrictions on Ownership 9/16
What are private restrictions on real estate ownership? Provide examples of those restrictions. How do these restrictions affect real estate owners?
Private restrictions are restrictions and limitations on the fee simple ownership rights that generally run with the land on real estate ownership. They can be and usually made by the government restricting the use of such land.
Types of restrictions include:
Covenants, conditions, restrictions - Are private encumbrances that limit the way a property owner can use a property
Liens - Is a claim on a property as either security for a debt or fulfillment of some monetary charge or obligation
Easements - It is a right given to one party by a landowner to use the land in a specified manner
Profit a prendre - Is a nonpossessory interest in real property that permits the holder to remove part of the soil or produce of the land
Adverse possession - Allows individuals to acquire title to land they do not own because they have openly possessed it for a statutory period of time
Encroachments - Is an unauthorized invasion or intrusion of a fixture, a building, or other improvement onto another person’s property
here is a link describing the certain types of restrictions:
http://legal-dictionary.thefreedictionary.com/Private+Land-Use+Restrictions
An example would be setting fire to the land. It is your land, why cant you set fire to if you wanted to? Well if it is near a school and the fire spread out of control, it can be a hazard. The government has many restrictions on the use of private land. Another would be that the government will allow something called an easement, which would allow a telephone company to route its line above or under someone else's private property ground. There are many restictions the government places on private real estate.
Here is a link describing how these restrictions effect owners.
http://www.alsa.ab.ca/easements-and-rights-of-way#Whatisaneasementorright-of-way
For example, an easement to allow an access road through ones land might not be a big problem, but what if that access road was in the middle of his corn crop? This would cause the owner to not harvest that section to allow the access road and therefor lose profit. These restrictions can have very negative effects on the owner of the real estate.
Private restrictions are restrictions and limitations on the fee simple ownership rights that generally run with the land on real estate ownership. They can be and usually made by the government restricting the use of such land.
Types of restrictions include:
Covenants, conditions, restrictions - Are private encumbrances that limit the way a property owner can use a property
Liens - Is a claim on a property as either security for a debt or fulfillment of some monetary charge or obligation
Easements - It is a right given to one party by a landowner to use the land in a specified manner
Profit a prendre - Is a nonpossessory interest in real property that permits the holder to remove part of the soil or produce of the land
Adverse possession - Allows individuals to acquire title to land they do not own because they have openly possessed it for a statutory period of time
Encroachments - Is an unauthorized invasion or intrusion of a fixture, a building, or other improvement onto another person’s property
here is a link describing the certain types of restrictions:
http://legal-dictionary.thefreedictionary.com/Private+Land-Use+Restrictions
An example would be setting fire to the land. It is your land, why cant you set fire to if you wanted to? Well if it is near a school and the fire spread out of control, it can be a hazard. The government has many restrictions on the use of private land. Another would be that the government will allow something called an easement, which would allow a telephone company to route its line above or under someone else's private property ground. There are many restictions the government places on private real estate.
Here is a link describing how these restrictions effect owners.
http://www.alsa.ab.ca/easements-and-rights-of-way#Whatisaneasementorright-of-way
For example, an easement to allow an access road through ones land might not be a big problem, but what if that access road was in the middle of his corn crop? This would cause the owner to not harvest that section to allow the access road and therefor lose profit. These restrictions can have very negative effects on the owner of the real estate.
Topic #2 - Property Rights and Legal Descriptions 9/16
What are property rights? ? How do they apply to our daily lives? Are there things to watch out for? What are legal descriptions?
This link provides some info on property rights:
http://en.wikipedia.org/wiki/Property_rights_(economics)
Property rights are given to the owner of a certain entity which gives them rights on how that entity is used.
They can include:
The right to use the good
The right to earn income from the good
The right to transfer the good to others
The right to enforcement of property rights.
An example of a property right would be a home owner who owns the land, as well as the air above the home. He/she may also own the mineral right underneath the home.
Property rights affect our daily lives in many ways. One being that it is illegal to be on someone else's property without permission. Unfortunetly we cannot freely roam this world. We must have permission from the owner of the entity that has the rights.
Things to watch out for when dealing with property rights include knowing all you can and reading the terms. For example, when buying a house. One may not put on the sales contract that the buyer is entitled to mineral rights. In that case, the buyer cannot object to the owner mineral rights even though they have the house above it. So it is very important to understand property rights.
Here is a link giving more detail of legal descriptions:
http://homebuying.about.com/od/glossaryl/g/Legal-Description.htm"
A legal description will define exactly where a property is located unlike a street address. Sometimes physical locations and legal descriptions dont always match up.
This link provides some info on property rights:
http://en.wikipedia.org/wiki/Property_rights_(economics)
Property rights are given to the owner of a certain entity which gives them rights on how that entity is used.
They can include:
The right to use the good
The right to earn income from the good
The right to transfer the good to others
The right to enforcement of property rights.
An example of a property right would be a home owner who owns the land, as well as the air above the home. He/she may also own the mineral right underneath the home.
Property rights affect our daily lives in many ways. One being that it is illegal to be on someone else's property without permission. Unfortunetly we cannot freely roam this world. We must have permission from the owner of the entity that has the rights.
Things to watch out for when dealing with property rights include knowing all you can and reading the terms. For example, when buying a house. One may not put on the sales contract that the buyer is entitled to mineral rights. In that case, the buyer cannot object to the owner mineral rights even though they have the house above it. So it is very important to understand property rights.
Here is a link giving more detail of legal descriptions:
http://homebuying.about.com/od/glossaryl/g/Legal-Description.htm"
A legal description will define exactly where a property is located unlike a street address. Sometimes physical locations and legal descriptions dont always match up.
Topic #1 Real estate importance 9/16
Why is real estate important?
Well there is a simple answer: Equity
Here are 2 very helpful links to state why real estate is so important to the economy.
http://real-estate.knoji.com/why-are-real-estate-values-so-important/
Real estate is equity in the form of a house, land, or commercial building. Real estate is a form of cash but less liquid. The benefits of real estate is that it is an investment and can not only make you money, but also help the economy. Real estate plays a huge role in the economy. When real estate halts, such as the "housing bubble burst" recently, it effects the economy in ways of jobs, people buying/selling homes, investment projects, etc. It effects the firms and the consumers in economics.
http://ktrommler.wordpress.com/2010/08/27/why-is-real-estate-so-important-to-our-national-economic-situation/
This link shows how important real estate is through just one transaction. Not only is someone just buying or selling a house, but the real estate agent is making a living, the bank is making interest off loans, and the government makes property taxes. From just one person buying a house, it can effect many more people.
Well there is a simple answer: Equity
Here are 2 very helpful links to state why real estate is so important to the economy.
http://real-estate.knoji.com/why-are-real-estate-values-so-important/
Real estate is equity in the form of a house, land, or commercial building. Real estate is a form of cash but less liquid. The benefits of real estate is that it is an investment and can not only make you money, but also help the economy. Real estate plays a huge role in the economy. When real estate halts, such as the "housing bubble burst" recently, it effects the economy in ways of jobs, people buying/selling homes, investment projects, etc. It effects the firms and the consumers in economics.
http://ktrommler.wordpress.com/2010/08/27/why-is-real-estate-so-important-to-our-national-economic-situation/
This link shows how important real estate is through just one transaction. Not only is someone just buying or selling a house, but the real estate agent is making a living, the bank is making interest off loans, and the government makes property taxes. From just one person buying a house, it can effect many more people.
ABOUT ME
Howdy Yall, My name is Nicolas Ohmstede and I am a senior Finance major, class of 2013, at Texas A&M. Here is a little about me.
I am from Houston, Tx - have lived there for 16 years but was origanlly born in Chicago, IL.
I have an interest in finance and investment banking.
I would like to go into that feild and work for corporate and travel a couple years before ultimately starting my own business.
My hobbies include - going to gym, riding motorcycle, having fun, movies, swimming.
Feel free to add me or message me as this is my first blog I have ever made! ;b
I am from Houston, Tx - have lived there for 16 years but was origanlly born in Chicago, IL.
I have an interest in finance and investment banking.
I would like to go into that feild and work for corporate and travel a couple years before ultimately starting my own business.
My hobbies include - going to gym, riding motorcycle, having fun, movies, swimming.
Feel free to add me or message me as this is my first blog I have ever made! ;b
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