Public Restriction on Real Estate

A public restriction on real estate is an encumbrance created by a governing body or public authority. Some examples of public restrictions on real estate include property tax, power of eminent domain, police power, the comprehensive general plan, zoning, building codes, subdivision regulations and escheat.

Property taxes are taxes on your property by the goverment. They create a steady flow of revenues for state and local governments.

Eminent Domain is the right of the government to claim your property. It is a given right of the government found in the Fifth Amendment to the Constitution.

Police Power is the power of government to regulate activities to promote the public health, safety, and general welfare.

Comprehensive General Planning is a statement of a community's long-range policies covering its predictedp hysical needs for 15 to 25 years.

Zoning divides land into different sections and puts regulations on each portion relation to the type and intensity of use. These are in place so that cities can be well organized and not sporatic like ahem Houston.

Building Codes are regulations on the construction of new buidlings and the alteration of existing ones. They are in place for the safety of the general public, and most specifically to prevent fires.

Subdivision Regulations are another tool in implementing the community planning process. The purpose is to protect residents from poorly planned and executed developments.

Escheat is the governements taking of land that occurs when the owner of the property dies without leaving the property to any living person.

In the article "How Houston Gets Along Without Zoning" from Businessweek, Peter Coy explains that although Houston has very few zoning laws, the city is still relatively maintained and organized naturally. Coy explains that although theoretically a major oil company could create a rig next to a residential neighborhood, real estate developers would never place a residential neighborhood next to an oil rig (for obvious reasons). Thus, Houston really is not as bad as it may seem.

No offense to the respectable Peter Coy, but he obviously has never been to Houston. I am not saying that there is a huge warehouse next to a mansion, but if I owned a 5 million dollar house I would be a bit distressed if I lived next to a bunch of low-cost efficiency apartments. This is not an uncommon sight in Houston. Although I do like a little bit of variety within areas, Houston is a bit too unorganized for my tastes.

Private Restrictions on Real Estate

Private Restrictions on Real Estate are the limitations on property owners of what they can and cannot do with their property.

This can inlcude covenants,conditions, and restrictions (CC&Rs) which limit the way a property owner can use a property. These restrictions are usually listed in the form of a deed or a plat associated with the property and are put upon the property by the original property owner. The goal of these CC&Rs is to protect the land of certain property to hopefully increase the value of the property and the surrounding properties.

Another example of a private restriction on real estate is liens. A lien is a claim on a property as either a secuirty for a debt or fulfillment of some menetary charge or obligation. Normally a lien is in the form of a mortgage, but it can also take the form of a mechanic's lien (construction lien) or a judgement lien (won in a lawsuit).

Easements are the rights given to one party by a landowner to use the land in a specified manner. The landowner shares the land with the holder of the easement. Easements normally come in two types. An easement appurtenant is an easement is legally connected to an adjoining property. This type of easement typically has a dominant estate, or a benefitted party. An example would be your sewar pipe that runs along your neighbors property. An easement with gross would be an agreement with a utility company, the basic idea that there is no dominate estate.

Adverse Possession or "land squatting" occurs when a non-owner of a property claims a property and maintains it for an extended period of time until the land becomes his. The squatter must maintain continuous presence, improve the land, and make sure that there are not any trespassors.

Homeowner's Associations are give jursidiction from CC&Rs. Although normally HOA's are relatively acceptable and practical, in some cases the rules are take to extreme measures.  The article  "Top 7 Insane Homeowner Assocaition Rules" describes some very interesting, and sad, uses of CC&Rs on different homeowners. One example is of a handicapped woman who was fined 25$ because she could not pick up her dog in the public areas. The fines became so cumbersome to the woman that she eventually had to move out of the neighborhood. Although I do see the need for a HOA, it is obvious that these patrons are not acting in the spirit of CC&Rs.

My House

To me, the most wonderful piece of real estate is my home in Murphy, Texas. My house is the shell to so many memories- christmases, thanksgivings, birthdays, graduations. It is the one place I know where I can always go if I am having a bad week and need a good home cooked meal, or a hug from my little brother. There is something about returning to a house, and being able to make my way around a kitchen, or knowing where some obscure item like super glue is. It takes time to learn those things, I love that about homes. You spend time there.

I chose my home, because to me, a house is an extremely dynamic pieces of property. Houses span from countless different styles, designs, and sizes. Even the exact same model house could be completely different on the inside, it could mean something different to another family. A house is personalized with photos, and family possessions, and those horrible tacky presents that little brother bought for his mom one year. Homes are the most important pieces of architecture to the mass majority of society.

One day, I want to be able to help a family purchase that shell. That place where they will build memories, have family dinners, come closer together. I want to see the joy in a mother's face when I give her the key to her new house. I want to drive by a house I helped a couple buy and see Christmas lights up. My favorite place on earth is my home, and I hope to one day give that feeling to someone else.

the low-down

Hello, my name is Rachel Coats and  I am a Finance Major, class of 2014, at Texas A&M University.



I am an absolute foodie, and I love cooking, eating, and dining out. I also enjoy traveling and visiting my family in Colorado. Some interesting things about me include my ability to play piano, my love of backpacking, and that I have a radio show on KANM student radio.

One day, I would love to be a real estate broker and own a small real estate company in a fantastic city like San Francisco, Denver, or Austin. I hope that FINC 371 will further my knowledge about real estate and will give me a solid foundation that I can use in my future career. Currently, my short-term goals are finishing college, obtaining a real estate license, eating as much delicious food as I can, and meet as many wonderful people as I can.

Some of my favorite websites include Letters of Note, a blog of interesting letters from all sorts interesting people like celebrities, writers, musicians, politicians, and ordinary people. I also really enjoy reading Post Secret and looking at  Food Porn.

A few of the things that I would love to accomplish in my lifetime are to travel to Paris, France, to eat sushi at Jiro Ono's restaurant in Tokyo, Japan, to see the Leshan Giant Buddha, and to attend cooking school.