6 Things You May Not Know About Property Law
Property Law must be fully understood if one is to succeed in real estate investing.
While you may feel that the real estate you own is yours, the government always has the last word. The law has ground rules when it comes to owning large properties.
Here are some basic things you may not have known about property law:
- Real estate is governed on a state level – Depending on the state residence laws may vary. Every state holds exclusive jurisdiction over the land within state lines. It originates from the times when the U.S. was a mostly agrarian society. When those laws were originally written, different states grew different crops. Propositions in the laws served to guarantee a clear-cut understanding of how crops should be cultivated and shared. Today, the states do not hold these same concerns, but they still control how land is owned within their borders.
- Do you live on Specialty Estates? – Specialty Estates, or condominiums, were introduced in the United States in the 60’s. They have become the property ownership solution of choice in urban areas. Condo owners are part of a coop, each owns a share of the multi unit property and pays for his share.
- Freehold vs Non Freehold Estates -A freehold estate is a piece of property you own for an indefinite period of time. Non-freehold estates are properties rented according contracts.
- What are incorporeal interests? – They are portions of property within a piece of real estate that are not physically owned. They may be easements, which are rights to use property for different purposes, such as planting greenery, agreements with additional property owners, or licenses you have acquired.
- How does eminent domain work? – The Fifth Amendment of the Constitution, allows private property to be acquired for public use, as long as fair compensation is paid to the owners. Local governments can exercise eminent domain if there health or safety concerns.
- What is zoning? – The government is also allowed to decide how your real estate is used. So what is zoning? Zoning is the most popular form of land control, sometimes dividing real estate based on the type of land and nearby structures. Real estate owners can petition their local government to allow them to build or remodel parts of their property. The government gets the final call.
Before you purchase that piece of real estate, make sure you know all the facts about your state’s property law.
