When people cannot afford to buy a property in full sum they will use loans to pay for the real estate. Interest is charged to the borrower as a fee for using money before they have earned it. That interest goes to the lender as a reward for investing and not spending the money it has earned. there are adjustable rate mortgages where the interest rate can vary with conditions, and there are fixed rate mortgages, where the interest rate will not vary. The lender has the option to refinance there mortgage where an old loan is retired with the proceeds of a new loan on the same property. When refinancing benefits can include a lower interest rate or smaller monthly payments.
http://www.youtube.com/watch?v=XWBYnFIoOyU
This video helps its viewers decide when is the right time to refinance a mortgage. It is excersised when the holder of the loan is in some kind of economic hardship. The narrator then walkes the audience through the way to go about refinancing their loan.
http://www.youtube.com/watch?v=a58PSBX7BSY
This video does a good job in explaining the role of interest rates and how they apply towards mortgages. The video uses pictures and allows the opportunity to take notes. It illustrates the basic uses and types of loans.
Real estate finance provides for the procurement and use or funds in regards to real estate. The finance aspect of real estate can be used to determine value such as with the discounted cash flow for the income approach or can be used to determine the solvency of a borrower. Some of the major employers of real esate finance are mortgage associations and lending institutions. Some of the trade organizations include Real Estate Finance Association (REFA).
http://www.youtube.com/watch?v=gi2uH3YxohU
This video even though it is a little long is a great clip that clearly and vigorously illustrates the vulnerability of the financial system to crisis. The narrator describes how the crisis of the financial system is so easily thrown off by the deeds of the real estate sector of finance.
http://www.springerlink.com/content/rk4q0p4475vr3473/
This article attacks the institution of real estate finance by showing how the use of foreclosures bring a community down. The author seems to see that even though the home owner cant pay their mortgage it is not their fault. well it is. We can agree though that the fact that the community suffers from foreclosures is true but the cause can be seen more macro-scopically. If an area is suffering economically, it can be seen by the rate of foreclosures.
An appraisal is an estimate of the value and a means to convey that estimate to the appraisal user. Appraisals are used in any kind of business transaction where a value is needed for a peice or real estate. They can be used in buying and selling actions as a base for price. They can also be used for property tax evaluation or even be used for insurance companies to determine an insurable amount. The need for a third party to assess value will always be needed for business transactions concerning real estate. The third party appraisor is someone that can be trusted to give an entity value.
http://www.youtube.com/watch?v=wEqjUInKXOo
This video discusses the roles and the process of a real estate appraisal. The video does a good job at what specifies a useful appraisal and how to use the value gained in the appraisal. The narrator also does a good job of discribing the best way to give the most value to a homeowner.
http://www.youtube.com/watch?v=zdZw57gBUqY&feature=related
This video goes into more depth of the home inspection process. It illustrates how the appraiser assigns value to what it inspects.
Appraisers estimate and assess the value of property. Although appraisers and assessors of real estate work in offices, they
spend a large part of their day in the field, conducting site visits.
Most work full time during regular business hours. Most appraisers of residential real property must have at least an associate’s
degree. Appraisers who appraise commercial real property must have at least a bachelor’s
degree. In addition, appraise must be licensed or
certified, but requirements vary by state.
http://www.youtube.com/watch?v=aZ8BdzLV-uM
In this article, the narrator discusses the uses and needs for real estate appraisers. The narrator also describes how to become an appraiser.
http://www.youtube.com/watch?v=5--Y8nl1pSw&feature=related
This video shows several different real life appraisers and they show some of the difficulties of their job. Some of the negative aspects of the day-to-day job as an appraiser are an important part in evaluating a job. It is important to focus on the good as well as the bad in job evaluation.
Public or government restrictions on real estate exist in order to allow the government to provide ramifications for failure to pay taxes, and the ability for the governing body to act in a way that protects public health, safety, morals and the general welfare. These limitations arise from the governments powers of taxation, eminent domain, police power, and escheat.
Taxation- Property tax is a huge strain of income for the government. When tax amounts are set by market values and assessment ratios, landowners are expected to pay those amounts or risk losing their land.
Eminent Domain- The government can aquire property for public use, even if the owner does not want to sell, as long as the government gives just compensation. The implication of Eminent Domain is used to aquire land for projects such as parks, highways, or railroads.
Police Power- Gives the government the power to regulate the use of land in a way that ensures public welfare. An example of such would be restricting slaughterhouses or certain manufacturing plants near residential areas. Zoning can be used to represent the police power.
Escheat- Happens when the state government becomes the owner of private property in the rare case that the owner dies without a valid will, living relatives or a heir.
Controversies can come from the acts of public restrictions. Some don't find certain aspects to be fair, especially with eminent domain or police power. Although citizens have a right to challenge these restrictions and take them to court, usually they are upheld. As long as just compensation is paid the government can take what they need in order to provide for the general public.
This article shows how Beaumont landowners are fighting the keystone pipelines development projects use of eminent domain. The landowners want to stop the construction companies of the pipelines use of eminent domain as it is being used without lawyers and sufficient contracts. TransCanada is taking the land with out going through the nessecary steps. Land owners want to fight it all the way.
In this video the narrator goes into depth and provides several examples on how to out smart zoning laws and allow them to work in your favor. He discusses how to fight the government. Although I see some of his motivations as just a way to "stick it to the man", which I disagree with, he provides a way to justify your ambitions with government laws. He uses an example of plants that are not allowed and are allowed. He then shows how to create zoning in your favor through conservation bylaws through those plants. If someone has the patients, they can ensure the great use of their land. At the same time he is discussing all this he gives a sales speech at the end which I thought was quite funny and kind of takes away from his message.
Private restrictions on real estate ownership are the limitations of a landowners use of his/her property. these restrictions come in forms of covenants, conditions, and restrictions(CC&Rs); liens; easements; profit a prendre; adverse possessions; and encroachments.
CC&Rs- Outlines restrictions that are included in the deed. A developer may want to limit the way future residents use thier land by including in their deed they cannot open a business in their home and that the lots are restricted for residential purposes only.
Liens- Is the claim on a property as either security for a debt or fulfillment of a monetary charge or obligation. an example of that is when a bank gives a mortgage on a property. They do not have ownership but they do have interest in that piece of real estate.
Easements- Is the right given to one party by a landowner to use the land in a specific manner. This may be sharing a driveway or allowing the party to use a road to access their landlocked property. There are a lot of legal issues that can arise from easements that can be settled in court
Profit a Prendre- The nonpossessory interest in real property that permits the holder to remove part of the soil or produce of the land. It can also be known as making a profit off of the land.
Adverse Possessions- Allows individuals to acquire title to land they do not own because they have openly possessed it for a statutory period of time, usually 7 to 20 years.
Encroachment- The invasion of a fixture, a building, or other improvement onto another person's property. examples of an encroachment are a fence that goes into someone elses land or a patio that crosses onto another persons land unauthorized.
http://www.jdsupra.com/legalnews/legal-alert-texas-lien-statute-signific-27049/
In this article, the law firm that published it is sending out an alert to contractors who may be working with old mechanic liens that have been void due to resent legislator. The recent legislator voided all liens that did not follow the certain guidlines that were created.
Adverse Possession Texas Foreclosure home For $16
by News 8 July 18, 2011 http://www.youtube.com/watch?v=w22EOq7IsTk
This news clip tells the story of how a man was able to gain the ownership of a $300,000 home just by setting up camp in the living room through, using adverse possession in his favor. The owner went into foreclosure, moved out, then the bank that held the mortgage went out of business. If this man can continue to live there for 3 more years he claim the deed to the home. In this civil issue, the owner would need to either pay off the money owned or the bank would need to file a complicated law suit, all of which is unlikely. By submitting adverse possession paper work at the court house for a cost of $16, this man was able to claim use of the home.
Property rights are the rights attached to ones property in different forms such as in real property, personal property and real estate. Property rights outline what can or cant happen and what rights someone has with thier belongings and ownership. For example someone has the right to do what they want with their positions as long as they do not conflict with someone else or the government domain. Things to look out for are the legal definitions of items. when coming across a legal concern be sure to take into account the definition or description of the item or entity to which is being question. for example when some one makes an article of personal property part of the real property then that article becomes a fixture to the property and will remain with the property in case of a sale. Such articles are fixtures. legal descriptions for items of property are found in our text and described as follows
Real estate- Land and things attached to the land
Real property- Consists of legal interests in land and things permanently attached to the land
Personal property- Includes legal interests in all other types of property. AKA chattel
Fixture- Personal property that becomes part of the real property when it is attached to the land or a building.
The leader of the video uses mobile homes to describe and explain the relationship between real and personal property. He explains how a mobile home is personal property when in a park or if the home owner does not own the land that the mobile home resides on. The owner can own the land but they can keep the mobile home as personal property even if they own the land if they choose to pay separate taxes on the home and the land. Some states have different considerations like New Hampshire but that is the general consensus of most states.
This video is put on by an organization call Citizen shale. They stand between landowners and oil companies as they attempt to draw a lease on the landowners mineral rights. Mineral rights are the interest and privaledge to all the property under the initial land. When oil is found, Oil companies lease the land to gain the oil beneath. To ensure that the land is treated fairly and the landowners property rights are still allocated, Citizen Shale comes in to be the middle man between the oil companies and the landowner. The video describes some of the major concerns such as water usage and different kinds of pollution.
