Blog Assignment #2 - Private & Public Restrictions

Private & Public Restrictions on Real Estate

Private Restrictions:

These are private encumbrances that limit the way a property owner can use a property. Deed restrictions are created by the developer. Different examples of these restrictions include:

1. Liens: claim on the property as a security for debt for a fulfillment of monetary charge or obligation. An example of a voluntary lien is a mortgage.

2. Easements: Are the rights given to one party by a landowner to use the land in a specified manner.

• Utilities
• Oil
• Gas
• Ranch Access

3. Profit a prende: A nonpossessory interest in property that permits the holder to remove a party of the soil or produce of the land. 

• Remove wild animals off land
• Remove shrubbery 

4. Adverse Possession: Allows individuals to acquire title to land that they do not own because they have openly possessed it for a statutory period of time

• Usually 7 to 20 years
• Someone moving in an abandoned house and claiming it as their own after at least 7 years
• http://www.youtube.com/watch?v=w22EOq7IsTk

5. Covenants, Conditions, and Restrictions (CCRs): These limit the way a property owner can use the property. 

Public Restrictions:

These are limitations that the government creates on the ownership of real estate. The government has 4 powers over real property: 

1. Eminent Domain: The government can acquire someone's property and use it publicly as long as the owner receives fair/just compensation. This doesn't necessarily mean market value, but whatever the government feels is just. 

• http://www.youtube.com/watch?v=loDA8DI_pzg

2. Police Powers: Government has the power of regulation. This gives them the ability to protect public health, safety, morals, and general welfare. 

3. Escheat: If a landowner dies without leaving a will, the state government becomes the owner of the property. 

4. Taxations: Property taxes, and ad valoren taxes, are levied as a percentage of the value of the property. The value isn't necessarily based off of market value either, but the assessed value. With this law, there are a lot of controversial points that are made.