Real Estate Basics-Control of Land Use

Posted by admin on June 12, 2010 under Real Estate License Basics | Be the First to Comment

This time our Real Estate Basics series will focus of the control of land use. As your real estate courses will show as you continue the real estate training to earn your real estate license, land is one of our most valuable assets. To that end, land use is controlled in order to determine that it is being put to its highest and best use. There are three types of controls for land use. Private land-use controls, public land-use controls and public-owned land.

Private land-use controls are determined by the grantor. The grantor can decide how the grantee can make use of the property. These land-use limitations are conveyed to the grantee through deed restrictions or restrictive covenants. Deed restrictions limiting the use of the property are encumbrances. Limiting restrictions are for things that cannot ever be done on the property, like building fences. Affirmative restrictions are things you must abide by such as setbacks, minimum square footage requirements or house colors. When these restrictions are placed on the deed, they are binding to all future owners of the property. If neighbors have issues over these restrictions, they must seek relief through the court system. Should the deed restrictions differ from zoning ordinances the more restrictive of the two will take precedence.

Public land-use is controlled by the United States government under the 14^th amendment to the Constitution. The process begins in the US Congress and then through the individual states and to local government. Enabling Acts are the rights to make laws to control local properties. There are four public land-use controls. The mnemonic for these controls is PETE; Police power, Eminent domain, Taxation, and Escheat.

Police power is a state or local government’s legal right to control land-use in the interest of the highest and best use for the public welfare, health and safety. This is accomplished through planning, zoning, regulating of building construction codes, subdivision regulations and environmental protection. Eminent domain is the government power that enables them to force the sale of a privately owned property for public use. Taxation is the real estate property taxes that are imposed by taxing entities or districts at county and local levels of government. There is no federal taxation on real property as specified in the US Constitution. Escheat is when a property reverts back to the state should the owner die without heirs or a will.

Public-owned property is land acquired for the public good. Some examples of this type of land use control would be land acquired through eminent domain, or any of the other public land-use controls, for highways, urban renewal projects, and national parks. Approximately a third of the total area of the United States is property that is owned by the US Federal Government.

To succeed in earning your real estate license there is much more detail to understanding the control of land use. Your real estate training will take you more in depth to prepare you for your real estate license exam.