Assignment 2: Restrictions On Real Estate - Private and Public

Let's say someone owns the entire fee simple ownership rights of a piece of real estate, this idea will always be restricted or limited by public or private entities. Collectively known as encumbrances, they are binding on anyone who gains a subsequent interest in a property. Sometimes it may adversely affect both the use and the value of the property, and otherwise it may enhance the value of a property by protecting it from detrimental actions by others.

Private Restrictions include:

• Covenants, conditions, and restrictions (CC&Rs);
• Liens;
• Easements;
• Profit a prendre;
• Adverse Possession; and
• Encroachments.

Covenants, conditions, and restrictions are promises made by a landowner about how the property will or will not be used that are enforceable through the court system. These promises are typically found in the deed.

A lien is a claim on a property as either security for a debt or fulfillment of some monetary charge or obligation. The two types of specific liens are mortgages and mechanics' liens. A mortgage is when the purchasers often pledge the property as collateral for the debt. Mechanics' lien protects those who provide labor or materials for real estate improvements.

An easement is a right given to one party by a landowner to use the land in a specified manner. the landowner does not have to give up his or her land, but rather coexists with the holder of the easement. An easement appurtenant exists when an easement is legally connected to an adjoining property. An easement in gross is a situation with no dominant estate, but only a servient estate.

 A profit a prendre is a nonpossessory interest in real property that permits the holder to remove part of the soil or produce of the land.

An encroachment is an unauthorized invasion or intrusion of a fixture, a building, or other improvement onto another person's property........(And for some reason you thought you were living in a civilized country where such an instance wouldn't happen!).

A good example of private restrictions on real estate is exemplified in this article, Steiner vs Windrow Estates Home Owners Association.

P.S., I actually thought goats were pets.

As we learn more about real estate, we notice there are restrictions which the government creates on the ownership of real estate. Yep, don't ever think you are exempt from that. These are known as Public Restrictions on Ownership. These limitations arise from governments' powers of;

• taxation
• eminent domain
• police power; and
• escheat

The first power of government over private property is the power of taxation. The government exercises this power by levying both property and income taxes.

Under the power of eminent domain, a government can acquire property for a public use, even if the owner doesn't want to sell, as long as the owner receives just compensation. 

Under police power, governments have the power of regulation, which gives them the ability to protect public health, safety, morals, and general welfare.

Escheat is the transfer of title of an estate or a property to the state after the death an individual who does not have a will and legal heirs.

Here are some links to better understand how the government uses its powers to restrict ownership:

1.coloradoan (so they could built a prettier one with a fountain? This is hilarious).

2.centralpennbusiness

So there you go, now that you have some basic knowledge about all these weird restrictions, I hope you'll know better about burning the grass on your field or making that massive water theme park in your backyard!!