Sunday, December 7, 2014

Blog #2/3 Rights, Public and Private issues


            Real estate is the physical land and appurtenances (buildings or improvements) that are affixed to the land. Real estate is immobile and tangible and includes attachments above and below the ground. Real property includes all interests, benefits and rights inherent in the ownership of physical real estate such as rights to use, sell lease, give away, and rights to gas or minerals, ect.
           

Private restrictions on real estate are limitations on the fee simple ownership rights that generally run with the land. Private restrictions could be covenenats, liens, easements, profit a prendre, adverse possession or encroachments. Covenants limit the way a property owner can use the property. A lien is a claim on a property as either security for a debt or fulfillment of some monetary charge or obligation, can be categorized as voluntary or involuntary. An easement is a right given to one party by a landowner to use the land in a specified manner, could be appurtenant or in gross. An encroachment is an unauthorized invasion or intrusion of a fixture, building or other improvement onto another person’s property.


Public restrictions are limitations on the property and rights that go with the land but are placed on by the government. The four main types are taxation, eminent domain, police power and escheat. Through taxation, the government taxes the land owned through an ad valorem tax which is levied as a % of value of the property, not on the income earned from property. Eminent Domain is the government’s way of acquiring property for public use. Compensaton for ED comes in the form of just compensation, condemnation proceeding and inverse condemnation. Police poers is the government’s right to have the power of regulation and to protect the public health, safety, morals and general welfare.

An unfortunate example of eminent domain in which the acquired site was vacant for 9 years after siezure:

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