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?
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