Lecture 8

Land Use Controls

Lecture 8

Public Controls on
Real Estate Use
Limits and Public Controls

1. Police Power

2. Eminent Domain

3. Taxation and Assessment

4. Escheat
Police Power

“Enables governments to protect the public by regulating

factors that can adversely affect the public health, morals,
safety, and general welfare.”

Four Types of Police Power

1. Zoning Ordinances
2. Subdivision Regulations
3. Construction Codes
4. Occupancy Codes
Police Power:
Zoning Ordinances

Elements of the Zoning Ordinance:

Land Use Regulation: Industrial, Commercial, Residential,

Agricultural (may contain subcategories)

Height Regulations: Specific to area (buildings in residential areas v.

downtown areas v. near airports)

Area (“bulk”) Regulations: Improvement-to-land coverage ratios,

restrictions to land size and building setbacks
Police Power:
Zoning Ordinances

Changes to Zoning Ordinances

Variances: Hardship must be proven on height or area regulations

-Example: Changes in setbacks

Rezoning Application: Desired change in land use

-Example: Single-Family Residential to Multi-Family
Residential or Commercial
Nonconforming Use: Real estate constructed and in use prior to
governed land-use regulations
Police Power:
Subdivision Regulations

Local planning departments review and approve builders’ plans

for developments within a Municipality in accordance with
Comprehensive Plan.
Prevents construction on floodplains, areas of poor or
inadequate drainage capacity, poor soil conditions
Prevents development in areas of overpopulation and
lack of infrastructure
Reviews and approves plat maps (public records)
Police Power:
Construction Codes

Imposed by local government. Specifies floors, walls,

ceilings, roof structures, electrical and plumbing, etc.
Steps of Governance of Construction Codes:
1. Application for Building Permits
2. Stages during construction
3. Certificate of Occupancy
Police Power:
Occupancy Codes

“Designed to establish socially acceptable minimum

standards for safe and healthy occupancy of existing
and newly constructed buildings.”

 Condemned Buildings
 Properties lacking required facilities
Eminent Domain

“A right vested in the state government and given to a

local government (even given to private agencies) to
acquire possession of private property”

 Condemnation: The ACT of converting private property to public

property
 Just Compensation: Compensation equal to the value to the
property
Eminent Domain

Forms of an Eminent Domain Take:

1. Full Taking
2. Partial Taking

Legal Interests of an Eminent Domain Take:

1. Fee-Simple Take
2. Perpetual Easement
3. Temporary Construction Easement
Eminent Domain

Compensations Due to Property Owners

1. Market value of the land and improvements being

taken by Eminent Domain
2. Severance damages to property from a change in
development or property use
3. Cost to cure the severance damages (if feasible)
4. In Florida, owner reimbursed for legal fees,
appraisers, land planners, etc.
Example of Severance Damages
(BEFORE PARTIAL TAKING)

SITE C: SITE A:
$12 psf $20 psf
1 Access Pt 2 Access Pts

SITE B:
$20 psf
2 Access Pts
Example of Severance Damages
(AFTER PARTIAL TAKING)

SITE C: SITE A:
$12 psf $12 psf
1 Access Pt 1 Access Pt

SITE B:
$20 psf
2 Access Pts
Taxation and Assessment

The taxation of real property to provide public services

(I.e. schools, roads, etc.). Handled by office of the
Property Appraiser.

Property Tax Lien: Placed on real estate when

delinquent taxes exist. Supercedes to any lien
Special Assessments: Benefit to specific properties, not
the general public (stormwater retention, streets, etc.)
Property Appraiser Web Sites

City of Jacksonville/Duval County:

http://pawww.coj.net/pub/property/default.htm

St. Johns County:

http://pa.co.st-johns.fl.us

Clay County:
http://www.ccpao.com/ccpao/ccpao.asp
Escheat
Enacted when a property owner dies and does not leave
a will (intestate), and no legal heirs can be found.

STATE GOVERNMENT ESCHEATS

THE PROPERTY FOR THE STATE
Lecture 8

Public Agencies’
Influence in the Real
Estate Business
Roles of Federal Government
 Antitrust Litigation (U.S. Justice Department)
– Prevents setting fixed sales commission rates in a market
 Mortgage Regulation (Federal Reserve Board, HUD)
– RESPA, ECOA, Truth-In-Lending, Mortgage Disclosure Act
 Right of Eminent Domain
 Air and Water Controls (EPA)
 Prevents Unfair Trade Practice (Federal Trade Commission)
 Housing and Financing for Low- to Moderate-income families
– FHA, VA, Farmers Home Loans
– Promotes standards of construction quality
Roles of State Government
 Controls over “bundles of rights”
– Estates, Escheat, etc.

 Right of Eminent Domain

Roles of Local Government
 Levy ad Valorem Property Taxes and their distributions
– School districts, special improvement districts, and townships
can levy ad Valorem taxes.

 Impose and enforce zoning and land use regulations

 Impose and enforce building, subdivision, and safety

regulations
 Eminent Domain passed down by State Government
Lecture 8

Private Controls on
Real Estate Use
Private Controls and Limits

Non-governmental units impose limits.

Three Major Types

1. Easements
2. Liens
3. Restrictive Covenants
Private Controls: Easements
“An easement is the right of one person to use the property of
another for a specified purpose and under certain conditions that
specify the extent of the allowable usage. The person holding
the easement does not possess the property, nor does that
person have the right to dispose the property.”

Two Types of Easements

1. “Runs with the land”

2. Does not “Run with the land”
Private Controls: Easements
Easements which “Run with the Land”
(Can be passed from one owner to the next)
 Easement Appurtenant: At least two parcels, where one at least one parcel benefits
from the use of another parcel
– Dominant Estate: Receives benefit from easement use
– Servient Estate: Allows use of land to benefit dominant estate
 Commercial Easement in Gross: A right-of-way over one piece of land
– Railroads, pipelines, municipal utilities

Easements which do not “Run with the Land”

(Cannot be passed from one owner to the next)
 Easement-in-gross: Involves only ONE parcel of real estate; cannot be sold
Private Controls: Easements
Creation of Easements

1. Express Agreement: Contractual agreement

2. Necessity of Implication: Circumstances requiring legal efforts;

as easement is required for land access
Private Controls: Liens

“Right of a creditor to petition the courts to force the sale of

a debtor’s property in order to obtain payment.”

 Specific Lien: Affects specified real estate

– Tax lien, mortgage lien, mechanic’s lien

 General Lien: Non-specific to specific real estate, but rather a

specific asset holder
Private Controls:
Restrictive Covenants

Covenants placed in a deed of property conveyance.

 Restrictions can be imposed on land use by a seller, who owns
adjacent parcels

 Restrictions can be imposed by a land developer, specially in

residential developments
– General plan restriction (filed with municipality)
– Declaration of restrictions (referenced in deeds)
 Promote uniformity in neighborhoods to increase property
values