Real Estate Principles and Practices Chapter 4 Land Use Controls © 2014 OnCourse Learning

Real EstateReal Estate Principles and Practices Principles and Practices

Chapter 4Chapter 4

Land Use ControlsLand Use Controls

© 2014 OnCourse Learning

© 2014 OnCourse Learning

Key TermsKey Terms

Assemblage

Buffer zone

Building codes

Cluster lots

Covenants

Deed restrictions

Dominant tenant

Down zoning

Easement

Easement appurtenant

Easement in gross

Encroachment

Homogeneous

Interstate Land Sales Full Disclosure Act

License

Master plan

Nonconforming use

© 2014 OnCourse Learning

Key TermsKey Terms

Planned unit development (PUD)

Plat

Police power

Servient tenant

Setback

Spot zoning

Variance

Zero lot lines

Zoning

© 2014 OnCourse Learning

OverviewOverview

Government’s right to exercise control over the use of land

© 2014 OnCourse Learning

Federal Controls on Land UseFederal Controls on Land Use

Land set aside for park area

Federal laws covering disposition of real estate

Interstate Land Sales Full Disclosure Act

Real Estate settlement Procedures Act (RESPA)

Assumable Mortgages

Civil Rights Act of 1968

© 2014 OnCourse Learning

State and Local Controls on State and Local Controls on Land UseLand Use

Police power: Police power: power of government to regulate land use

Master plan: Master plan: zoning laws, building codes and subdivision regulations

© 2014 OnCourse Learning

State and Local Controls on State and Local Controls on Land UseLand Use

Master planMaster planConsiders physical, economic, and social conditions

Guide for growth

Homogeneous: Homogeneous: compatible uses result in stable values

© 2014 OnCourse Learning

ZoningZoning

R-1 through R-7

R-1: most restrictive requires large lots

Minimum square footage

Minimum lot width

Minimum front, side, and rear setbackssetbacks

© 2014 OnCourse Learning

ZoningZoning

O-1: office use

C-1:neighborhood business

C-2: community business

C-3: general business

C-4: central business

© 2014 OnCourse Learning

Changes in ZoningChanges in Zoning

Special use Special use permits: allow conversion of property to another use

Conditional use Conditional use permit: use beneficial to the public

Exclusionary zoning: Exclusionary zoning: large lots excludes those who cannot afford the land cost

Inclusionary zoning: Inclusionary zoning: requires lower income properties

© 2014 OnCourse Learning

Changes in ZoningChanges in Zoning

Moratorium: Moratorium: halts construction

Zoning freeze

Amendment: Amendment: Allows a zoning change

© 2014 OnCourse Learning

Changes in ZoningChanges in Zoning

Use is in violation of present zoning, but was lawful when begun

“Grandfather” – zoning is not retroactive

© 2014 OnCourse Learning

Changes in ZoningChanges in Zoning

Zoning of isolated properties inconsistent with existing regulations

Law does not favor spot zoning

© 2014 OnCourse Learning

Changes in ZoningChanges in Zoning

An exception to the zoning ordinance

Use may not be detrimental to the public

© 2014 OnCourse Learning

Changes in ZoningChanges in Zoning

Property rezoned to a lower use

New use does not use land to its highest and best use

Compensation

© 2014 OnCourse Learning

Procedure for Rezoning or Procedure for Rezoning or VarianceVariance

Applicant contacts planning department

Planning department inspects site and makes recommendations

Hearing announcement placed in the newspaper

Hearing is held

Public may speak for and against

© 2014 OnCourse Learning

Procedure for Rezoning or Procedure for Rezoning or VarianceVarianceIf approved – ordinance is prepared

City council holds 3 meetings

If approved – zoning becomes effective

© 2014 OnCourse Learning

Private Control of Land UsePrivate Control of Land Use

Deed Restrictions: Deed Restrictions: determine how a property may be used

“subject to”

Covenants: Covenants: regulate use of property

If violated – may be suit for loss of value

Nuisance complaintNuisance complaint

© 2014 OnCourse Learning

EasementsEasements

Easement: Easement: right-of-way through the land or another

Right of ingress and egress

© 2014 OnCourse Learning

EasementsEasements

Created by law, people, use

Must be in writing

2 typesEasement appurtenant

Easement in gross

Creation of an EasementCreation of an Easement

© 2014 OnCourse Learning

EasementsEasements

Right to use the adjacent land of another

Two parties are always involved

Two owners

Dominant tenant: acquires benefit or gain

Servient tenant: gives the easement

Encumbrance

Easement right transfers with the sale

Easement by reservationEasement by reservation

Reserved or retained right of access

Easement by grantEasement by grant

© 2014 OnCourse Learning

EasementsEasements

Personal or commercial

No servient and dominant tenant

Cannot be mortgaged or assigned and is not inheritable

Given for a lifetime

License: License: revocable, usually not in writing

Commercial easement: Commercial easement: utility company or government agency

© 2014 OnCourse Learning

EasementsEasements

Easement of necessity: Easement of necessity: special needLandlocked

Cannot be rescinded by the owner of the land

© 2014 OnCourse Learning

EasementsEasements

Profit a prendre: Profit a prendre: servient tenant allows dominant to remove mineral or soils

Easement by prescription: Easement by prescription: acquired by long term continuous use of another’s property

Party wall easement: Party wall easement: two owners share a common wall

© 2014 OnCourse Learning

EasementsEasements

Easement by perception is abandoned

Dominant and servient properties merge

Dominant tenant releases easement right

Quiet title suit

Easement is no longer necessary

© 2014 OnCourse Learning

EncroachmentEncroachment

Encroachment:Encroachment:when one owner’s property infringes onto another’s land.

generally not covered by title insurance

important for purchaser to have a survey