Topic# 4 Public Restrictions on Ownership

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.

Texas Landowners Fight Eminent Domain Laws in Keystone XL Pipeline Development Project.
By LAUREL BRUBAKER CALKINS & MARGARET CRONIN FISK Bloomberg
Sept 13, 2012
http://www.tulsaworld.com/business/article.aspx?subjectid=49&articleid=20120913_13_E4_ByLaur338661

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.

How to Turn the Tables on Zoning Laws
by eastpengardens Jan 10, 2010
 http://www.youtube.com/watch?v=bNqbEakrQY

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.

Topic# 3 Private Restrictions on Ownership

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.


Legal Alert: Texas Lien Statute Changes

by Sutherland Asbill & Brennan LLP on 9/14/2012

 http://www.jdsupra.com/legalnews/legal-alert-texas-lien-statute-signific-27049/

This article is an alert to Texans concerned with liens or have previous experience with Liens. The laws changed January 1, 2012 in away that would void old liens that did not provide a statute with consent in them. the statute voids agreements that “adversely affect” payment bond or lien claims. These voids would effect general contractors and their claim to mechanic liens..

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.

Topic #2 Property Rights and Descriptions

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.

Are Mobile Home Personal or Real Property
by John Freno July 16, 2012
http://www.youtube.com/watch?v=6lKUNxeP2-8

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.


Citizens Shale Advisors/ Helping Landowners with Oil and Gas leases
Citizen Shale April 1, 2011
http://www.youtube.com/watch?v=YGn1lFkc7kI

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.

 

Topic#1 The Importance of Real Estate

How does Real Estate effect the Economy?
By Kimberly Amadeo.
http://useconomy.about.com/od/grossdomesticproduct/f/Real_estate_faq.htm

The article explains the integral role of real estate in today's economy. Real estate is effected by everyone, whether through business or home life. It is also a major section of this countries GDP through housing, construction and development. The author explains this through a question and answer format

Homes and Cars Point the way for US
by Justin Lahart 09/12/2012
http://online.wsj.com/article/SB10000872396390443589304577637921304968032.html?mod=WSJ_RealEstate_LeftTopNews

This article shows how the mortgage and car loan industries will be the highlight of the US economy as well as the most promising. As our economy continues to heal the home market which is constantly growing in value. The housing forecasts have not expected the growth that has accorded recently.


Real estate is an industry with in our economy that is constantly growing and effects everyone. There is only a certain amount of land availible. It is one thing that more cannot be made of. Therefore it is always a safe investment and a lot of people are able to capitalize on it. Everyone is effected by it through either buying homes, leases, or businesses.

My Brief Description

1. My name is Casey Homer. I am a senior Finance Major at Texas A&M. I am a born and raised Texan from Houston. Currently I am a USMC officer candidate who will commission as a 2nd LT. in may 2013. I graduated Officer Candidate School this past summer. Throughout this semester I will be working towards gaining a law contract in order to practice JAG upon completion of law school with the department of the Navy. For fun I like to train for and compete in triathlons.
2. I am writing this blog as an educational supplement to my Finance 371 Real Estate Decision Making course at A&M university.