64 terms

modern real estate practice in North Carolina, chapter 6

Unit 6
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Terms in this set (...)

the regulation of land use is accomplished through
public land use controls, private land use controls or deed restrictions, and public ownership of land. public land includes Parks, schools, and expressways owned by federal, state, and local governments.
police power
state power to enact laws or regulations promoting health, safety, and General Welfare of the citizenry
public land use controls include
planning, zoning, subdivision regulations, building codes, and Environmental Protection legislation
master plan
A comprehensive plan to guide the long-term physical development of a particular area. also called a general plan. cities and counties develop these for 20 years or longer to ensure that social and economic needs are balanced against environmental and aesthetic concerns. this General plan is both a statement of policies and a presentation of how those policies can be realized.
a typical master plan provides for
land use, including standards of population density and economic development ; public facilities, including schools, Civic centers, and utilities; circulation, including public transportation and highways; conservation of energy and natural resources; and noise abatement.
economic and physical surveys
are essential in preparing a master plan. Countrywide plans also must include the coordination of numerous Civic plans and development to ensure orderly City growth with stabilized property values.
zoning ordinances
laws imposed by local government authorities, such as cities and counties, that regulate and control the use of land and structures within designated districts or zones. This is the implementation of the provisions of the master plan.
zoning regulates and effects such things as...
permitted uses of each parcel of land, lot sizes, types of structures, building Heights, setbacks, style and appearance of structures, density, and protection of Natural Resources.
setbacks
the minimum distance away from the streets or sidewalks that structures may be built
density
the ratio of land area to structure area in a development
static
zoning ordinances cannot be __________________________; they must remain flexible to meet the changing needs of society.
locally by Municipal governments
in North Carolina zoning is all done ______________________________, meaning there is no Statewide zoning ordinance.
enabling Act
the North Carolina law through the general assembly that confers zoning powers on Municipal governments instead of the state.
residential, commercial, industrial, and agricultural
zoning ordinances generally divide land use into General use classifications such as...
cluster zoning
using this, a developer can provide the same number of housing units as traditional subdivision plans but was substantially increased tracks of open space. This is accomplished by slightly reducing the size of the individual lots and cluster in the Lots around varying Street plans such as cul-de-sacs.
buffer zones
A Transitional area between two areas of different predominant land uses. Examples may be landscaped Parks or playgrounds that separate and Screen residential areas from non residential areas.
extra-territorial jurisdictions (ETJs)
areas outside the corporate limits but subject to the zoning restrictions of a municipality. May extend 1 - 3 miles from the corporate limits. The population of the municipality will determine the extent of regulatory power from the corporate limits.
14th Amendment to the Constitution
provides under the due process provisions that zoning ordinances must not violate the rights of property owners or the various provisions of the North Carolina States Constitution. if the means used to regulate the use of property are destructive, unreasonable, arbitrary, or confiscatory, the legislation is usually considered void.
tests commonly applied in determining the validity of ordinances based on the 14th Amendment to the United States Constitution and the North Carolina state constitution...
ordinances require that: the power be exercised in a reasonable manner; the provisions be clear and specific; the ordinance be free from discrimination; the ordinance promote public health, safety, and general welfare under the police power concept; and the ordinance apply to all property in a similar manner.
downzoning
Rezoning of an area, reducing the density of use allowed for a parcel. THIS always changes the value of property, and usually the change makes it less valuable. an example might be when land zoned for residential construction is rezoned for conservation or recreational purposes only. the state is ordinarily not responsible for compensating property owners for any resulting loss of value, even if the government's power of eminent domain was used.
nonconforming use
also referred to as a legal non-conforming use. this refers to real property uses that were legally established before the adoption of the current zoning plan. Grandfathering maybe used to permit a youth that would otherwise be illegal. this type of use is generally not permitted to continue indefinitely. Zoning statutes May prohibit the Reconstruction of a building that is destroyed by fire or otherwise dismantled if it does not conform to current zoning requirements. a real estate broker should never guarantee the continuance of a non-conforming use after a purchase. Instead, refer the buyer to the zoning power for verification.
illegal use
THIS would be a non-conforming use that violates the zoning laws at the time it is put into place. An example might be opening a gas station in a single-family residential Zone. The zoning body can go to court to stop this type of use at any time, even if the unpermitted use has been in place for an extensive period of time. TO create this type of non-conforming use is a misdemeanor.
zoning variations
When owners are inconvenienced by a master plan or zoning ordinance that is enacted, and want to change the use of their property, they may take their complaint to a "zoning board of adjustment" and speak about the effects of zoning ordinances on specific parcels of property. Petitions may be presented to the board for variances or exceptions to the zoning law.
conditional-use permit
A special-use permit provided for in the zoning laws. It is granted to a property owner who wishes to use property in a special way that is in the public interest, such as a church or Hospital in a residential district.
variance
may also be sought to allow a deviation from an ordinance due to unique circumstances. Under highest and best use, it is in the public interest to put land to use rather than have it lie fallow. To get this, the property owner must prove that there is no other reasonable use for the property and the property owner will suffer a substantial hardship if it is not granted. The hardship also must not have been created by the property owner.
Amendment to the official zoning map
THIS is another way a property owner can change the zoning classification of a parcel of Real Estate. the proposed amendment must be brought before a public hearing on the matter and approved by the governing body of the community. Unhappy property owners can appeal to the courts, which may override the local officials and even the voters if the amendment is not approved.
overlay District
A type of zoning that is superimposed over another type of zoning. An example is when an area that is zoned single-family residential is also designated as a flood zone, or if a district is both historic preservation and aesthetic zoning District.
historic preservation zoning
the purpose is to preserve historic buildings and sites that are irreplaceable. An owner whose property falls within this type of Zone may have difficulty changing or upgrading the exterior of a structure on the property. Before making any material changes, the owner must have chain a certificate of appropriateness from the appropriate regulatory entity.
certificate of appropriateness
Must be obtained in order to make changes on properties within historic preservation zones. This document evidences that the local historic preservation commission or other appropriate entity has approved the changes to be made to the property.
aesthetic zoning
Zoning as to architectural style so structures fit in with the neighborhood. exterior surfaces of structures may be restricted to a particular color palette or construction material or design.
spot zoning
When a particular property or group of properties is rezoned to permit a use different from the neighborhood properties' uses. legality of this type of zoning is determined by four factors: the SIZE of the reason area; the degree of COMPATIBILITY of the different zoning within the government's adopted plan for the area; the IMPACT of the rezoning on the land owners, neighboring landowners, and the surrounding community; and the DEGREE of DIFFERENCE between the zoning of the surrounding area and the new Zoning for the tract in question. THIS type of zoning is usually illegal.
disclosures of zoning
it is the broker's responsibility to disclose any knowledge of subdivision regulations, Street disclosure laws, protective Covenants, and other zoning issues. a listing broker should acquire copies of any deed restrictions and protective covenants at the time of taking the listing. a broker should never make assumptions about the current or future zoning of a property on behalf of a client or customer.
subdivision
North Carolina state law defines this term as all divisions of a tract or parcel of land divided into two or more Lots, building sites, or other divisions for the purpose of sale or Building Development, whether immediate or future, and including all division of land involving the dedication of a new Street or a change an existing streets.
exceptions to the definition of a subdivision
these cannot be considered subdivisions: 1) a division of land if each parcel has more than 10 acres with no Street right-of-way dedication; 2) a division of land no larger than 2 acres into no more than three lots with no street right of way dedication involved, when the parcel is owned by a single entity.
plat map
A detailed survey map of a subdivision that must be approved by local authorities and recorded before actual transfer of title can occur. the land development plan must comply with the overall master plan adopted by the county, City, town, or Village. NO public sale or commercial use may happen before this approval.
the subdivision process
1. The initial planning stage 2. The final planning stage 3. The disposition, or start-up.
initial planning stage
the first stage of a subdivision process, where the subdivider seeks out raw land in a suitable area, analyzes the property for its highest and best use, and draws up preliminary subdivision plans accordingly. Local Planning and Zoning officials are essential to being sure that the plan fits the required zoning regulations, or that the subdivider may petition for changes or variances in zoning.
the final planning stage
THE second stage in the subdivision process.... involving a follow-up of the initial stage. Final plans are prepared, approval is sought from local officials, permanent financing is obtained, land is purchased, final budgets are prepared, and marketing programs are designed.
disposition, or start-up
THE third stage in subdividing process. Brings it to its conclusion as plans are recorded with local officials; streets, sewers, and utilities are installed. Buildings, open parks, and recreational areas are constructed and landscaped if they are part of the subdivision plan. Marketing programs are then initiated, entitled to the individual Parcels of subdivided land is transferred as the lots are sold.
North Carolina Department of Transportation
a developer of most new subdivisions must have streets approved, based on construction standards set by the..._________________________.
North Carolina disclosure laws
declare that Brokers must disclose to buyers whether new subdivision streets will be public or private prior to selling or conveying the lot. This mandated written disclosure requires a signature from the buyer, must explain the consequences and responsibilities of a private Street, must disclose the party or parties responsible for construction and maintenance of the street, and must disclose that the street will not be constructed to the minimum standard required of publicly maintained streets. Regardless of the age of the subdivision, real estate broker should determine if the streets are public or private before making any statements to that effect.
Street Maintenance
Just because streets have been designated for public use and approved by the North Carolina Department of Transportation, they may not be under public responsibility for maintenance of the streets. There is usually a minimum population requirement prior to state adoption, so streets that would possibly become publicly maintained may have to wait a while before reaching the point at which they are publicly maintained. In the meantime private owners on the street are responsible for the streets.
deed restrictions
Limits or restricts the use of real property. ARE usually originated and recorded by a subdivider as a means of controlling and maintaining the desirable quality and character of the subdivision. Land restrictions are appurtenant to the property, so they stay with the property through sales and changes of ownership. May be published in a separate recorded instrument referred to as a "declaration of restrictions".
deed restrictions may be imposed upon...
the size of structures that can be built, the cost of structures (usually a minimum cost) that can be built, the number of structures that can be built, architectural Styles, fence Heights, setbacks, or out buildings that can be built on the land. Almost anything that is not illegal can be set forth in the restrictive covenants.
FHA standards
minimum standards that have been established for residential subdivisions are to be submitted for approval. THIS Administration sets primary minimum standards that deal with the actual development and infrastructure of the subdivision. These standards also apply to building construction, and expect the more stringent local codes to be used.
FHA
Federal Housing Administration
HUD
Department of Housing and Urban Development
Interstate Land Sales Full Disclosure Act
Passed by Congress in 1968 and requires those engaged in the interstate sale or leasing of subdivision Lots to file a statement of record and register the details of the land with HUD. THE act exempts the sale of lots in a subdivision containing fewer than 25 Lots, and subdivisions where each lot is 20 acres or more. Interstate sales or leasing activities include out-of-state mailers, newspaper ads, television advertising directed to out-of-state buyers, and out-of-state telephone solicitation. Broker's involved in Interstate selling of lots across state lines that come under this act should seek legal advice to ensure full compliance. failure to provide the property report prior to contract formation may give the consumer grounds to void the contract. If the seller misrepresents the property and any sales promotion anyone induced to purchase a lot by the promotion can sue the seller for civil damages. Failure to comply with the law also May subject a seller to criminal penalties of fines and imprisonment.
interstate
across state lines
intrastate
Within a state
property report
contains all essential information about the property such as distance over paved roads to nearby communities, number of homes currently occupied, soil conditions affecting foundations and septic systems, type of title a buyer receives, and existence of liens. must be furnished two perspective buyers or lessees by the developer prior to signing a purchase agreement or lease.
building codes
standards for construction and safety of buildings. North Carolina has enacted a series of Statewide codes with the primary purpose of safety. THESE set the requirements for kinds of materials, sanitary equipment, electric wiring, fire prevention standards, Etc.
building permit
permission for construction that must be acquired from the city clerk or another official before a person can build a new structure or alter or repair an existing building on property within a municipality. This requirement allows officials to verify compliance with building codes and zoning ordinances as they examine the plans and inspect the work.
certificate of occupancy
once the completed structure has been inspected and found satisfactory, the building inspector May issue a..._____________________________, which signifies that the building is safe to occupy.
Federal Emergency Management agency
FEMA. this agency has designated many areas bordering on rivers and streams as flood Hazard areas which are subject to federal regulations concerning Improvement and Construction in those areas. they also produce Maps that designate these flood Hazard areas, and flood insurance is required under the National Flood Insurance Program if a federally related mortgage loan is to be used for properties within those areas.
Highway access disclosure
if there is any planned Construction of new highways, freeways, Loop roads, Etc, real estate brokers are expected to be aware of this and make full disclosure to any potential customer or client. Access to a public Road or Street is important to any buyer, and the broker should make sure that Public Road access is available.
Environmental Protection laws
have been passed in great number in an attempt to respond to the growing public concern over the Improvement and preservation of America's natural resources. These laws protect against all forms of pollution, such as air, water, noise, and solid waste disposal. A broker should stay informed of local environmental concerns so they may inform consumers.
Americans with Disabilities Act, ADA
federal government mandates that new commercial buildings and Old Republic buildings that undergo remodeling must meet the standards of this law. THE purpose of this legislation is to facilitate accessibility and Mobility by ramp construction, safety rails, wider doors, and other accommodations. THIS law does not apply to residential housing.
private land-use controls
are put in place by individual developers or Property Owners, usually when they transfer property. At conveyance, a property owner can include restrictions in the deed that limit the new owners use of the property. For example, the property may be conveyed on the condition that is used only as a bird sanctuary.
Declaration of restrictive covenants
A declaration of limitations established by a developer. Pertains to land use Rights.
protective Covenant
Enforceable conditions that restrict the manner in which an owner may use his property. It is a more modern term replacing "restrictive covenant". It means pretty much the same thing and better implies the intended use, which is to protect owners from uses that may have an adverse effect on value or enjoyment.
laches
loss of a right through undue delay or failure to assert it. If adjoining lot owners stand idle while a violation is being committed, they can lose the right to petition for injunctive Relief by their inaction. THE court may claim that their right was lost by their inaction.
THE North Carolina REAL ESTATE License Law
says a licensee has a duty to avoid any misrepresentations regarding permitted land use, to recognize potential land-use problems, and an affirmative duty to discover and disclose any such problems. a broker is strongly cautioned to refrain from stating whether or not a particular use of the property will be allowed or if a certain act will be in violation of the covenants. Also, making assumptions about allowed activities or uses based on what other property owners have done is a recipe for a liability suit. Other property owners may have grandfathered uses, and should not be referred to the standard. always refer the consumer to an attorney if there is any uncertainty about a proposed land use.
775 million acres of land
the amount of land the federal government currently owns, Which is nearly one-third of the total area of the United States. publicly owned streets and highways serve a necessary function for the entire population. Publicly and is often used for recreational purposes as well. National and state parks and forest preserves create areas for public use and Recreation and at the same time help to conserve our natural resources.