Private vs. Public Restrictions on Real Estate

Private vs. Public Restrictions on Real Estate

What are Private Restrictions on Real Estate?
 - Covenants or conditions created by the land developer that limit the way a property owner can use a property. Examples of private restrictions include:

1.) Encumbrances - Restrictions on the way the owner uses the property. These strict deed restrictions preserve the value of the land.

2.) Liens - A claim on a property as either security for a debt or fulfillment of some monetary charge or obligation. Below is link that further describes property liens.

http://www.youtube.com/watch?v=NPzPmBOJD1k

What are Public Restrictions on Real Estate?
 - Covenants or conditions that the government places on the usage and rights of public property. There are four basic government powers.

1.) Eminent Domain - The governmental right to take personal property as public property against the owner's will, as long as fair compensation is provided.
 
2.) Escheat - Ability of government to take control of personal property when the owner dies without a will or living relatives.

3.) Taxation - These include property taxes, which are a proportion of the value of the property. Below is a link with an example of property taxes.

http://www.youtube.com/watch?v=ZPXznI7lOeo

4.) Police Power - Right to oversee and regulate the use of private property to protect the public's best interest.