hey my real estate students okay so let's go through some old hard drives and I found some really solid material on police power eminent domain Taxation and it's cheap now these are definitely on your examination so I want you to check out these segments now they're a little bit of an archive so it's a blast in the past so the old beard is going to be a little bit different but the information is solid and it's going to help you get through this examination so good luck with your studies good luck on your exams and I hope you enjoy this material on the Government powers [Music] foreign [Music] in this next segment we're going to be talking about the policing power components and comprehensive planning now with policing power generally speaking we're not just talking about you know the arresting authority of police we're also talking about the inspectional services building department we're talking about health department we're talking to all of these different components zoning and planning commissions all of these components make up our policing power now how does it work well the big government the federal government will enable the state governments to be able to police its citizens and the state governments pull allow their local governments to be able to do the same thing and we call this enabling acts so big government enables little government now the comprehensive plan specifically is a big picture plan and one of the components you want to know depending on where you guys are going to be taking this examination is we want to know that the comprehensive plan can sometimes be referred to as the master plan now who puts together the master plan of the comp plan basically a Planning Commission it could be a Planning Commission appointed by a city council and the Planning Commission does the planning and then the city council approves the planning so that's typically how the flow goes for example in the city of Boston it's the Boston Redevelopment Authority so we have the bra and those guys are the planning commissions so what happens with planning or Master planning as we're looking for this long uh term plan it's this big picture plan and it's not a regulatory document as far as legislation it doesn't require certain things but it's some things that we would like to see happen over a span of time now what we tend to look to with Comprehensive planning is things like land use how we expect to utilize certain sectors of the area in which we're planning so it could be for commercial purposes it could be for residential purposes Etc the other things that we're doing here is we're also determining if we need more housing of present and anticipated residents and we're looking at declining neighborhoods and revitalization of those declining neighborhoods and all of these other components go into the land planning and housing needs for our communities we're also looking at utilities and schools and parks and libraries and all of these different components and their development around us storm water management and Sewer management and waste management all these other components and then one of the main income opponents these days with Comprehensive planning happens to be environmental considerations so all of these different components go into it and we utilize local you know institutional planning and City Planning and County planning and all of these plans kind of come together and they make up this world of Master planning now what the master plan is is the big picture and how do we achieve the master plan in our next topic we're going to be talking about a concept called zoning one of the regulatory tools that we have in our tool bag when it comes to comprehensive planning is zoning so zoning is a tool that helps us achieve the master plan and typically what we do is it helps us break up various areas in the overall big picture so we could designate residential districts and we can also designate areas for commercial purposes and we can designate all of these different land uses so they're not really conflicting with one another so zoning is this tool now there are no Nationwide or Statewide zoning ordinances so I want you guys to know that zoning is all local it's completely local and the local government determines zoning so every little town and Community will have different zoning and allowances some towns might have a lot of commercial influence and some towns might not want that much commercial influence more residential now the one of the points of zoning is to help achieve Harmony in our surroundings and if we can achieve this harmonious balance then we can sustain value so conforming to each other is what properties tend to want to do and maximum value many times can be realized if properties sit in harmony with their surroundings so if you're talking an entire residential area then all of the properties are residential in nature and they tend to be valued uh you know they're sustain their value if they are valued in those particular types of scenarios so that's what we're looking for with Comprehensive planning now zoning affects such things as setback requirements setback requirements are the minimum distance tour away from one structure that another structure can be built so for example the setback requirements for putting up a fence from a structure on your property a fence line might be you know I'm giving an example 15 20 feet away from the fence line you could maybe put only a shed in your backyard if it's 15 feet from one fence and 20 feet from another so setback requirements will Define what you can and you cannot do as far as placing physical structures on your property or coming close to other particular Properties or your neighbors so those are called setback requirements and that's a pretty popular one on examinations when we come back what we're going to be doing is we're going to be talking about other components of zoning and take a looking at an example and understand how zoning Works overall we're talking about zoning and one of the zoning components that sometimes will come up as a vocab phrase this is a popular one on most examinations across the country and it's known as snob zoning so snob zoning in essence is where the local uh area determines zoning to kind of lock certain uh components out and snob Zoning for example plastically could be that we won't allow any commercial influence in a residential area so that could be a forbidden zone which means that if anybody wants to open up some sort of commercial influencer a store or a shop a restaurant in an area that's that's Zone forbidden then you might not be able to put that in there so that could be argued that that's a version of snob zoning it's prohibiting certain things now in some areas like beach communities for example you see this often they tend to make property structures similar or they don't allow certain things or you can't subdivide your property if you can even if you can build more structure because of the snob zoning laws so snob zoning is one of those things but we have to be careful with snob zoning because it could lead to discrimination it could lock out certain protected classes of people from entering into an area so snob zoning is a popular one that tends to show up on examinations look out for it you might see it so what we're going to look at here in this diagram is we're going to talk about a couple of vocab phrases that tend to come up on the examination we're going to use a visual aid here to kind of explain it in this diagram we've got four properties property a b c and d there's a fence separating all of the properties and property a property B and property C happen to have swimming pools in their backyards and property D note does not now it's not necessarily fair that D doesn't have it maybe D didn't put the pool in or that parcel happened to not have it everybody else put their pulls in around the same time indeed didn't do it but Dee would like to put in a swimming pool now but they're no longer allowed to because let's say the zoning changed in the area and no longer or forbids any kind of a structure to be anywhere near a fence line within a certain feat so the setback requirements changed and now the minimum distance from one structure to another structure near a fence needs to be a fair amount of space away well all of the other properties a b and c have the pools put in and they put it or they predate that changing to the zoning you see zoning isn't static it's always changing as we change and as we change we tend to change the way that we look or our perspective of zoning and what we can always do is we can move forward but sometimes it's hard to go backwards and to say Hey listen now everybody's out of compliance zoning so what we do instead is we allow those old uses to continue and that's called grandfathering so property a property B and property C in this example are grandfathered in and they can continue the use of the swimming pools so long as you know there's nothing unsafe about the construction now property D if they want to change to the zoning they're going to have to apply through a zoning hearing board or a board of appeals we call them zbas they are going to have to apply for what we call a variance so a variance is an exception to the zoning rules and what the variance in essence is doing is it's saying Hey listen I've been denied or I've been injured because I'm denied the right to use my property like my other neighbors are and I feel that granting me this variance would allow me to utilize my property in a way that's similar conforming to the other property owners so if the zba approves the zoning application then they can approve the variance use and the variance is now approved now then the owner D can get a building permit to be able to construct the pool and now have a swimming pool in their backyard now let's say also unrelated but if property a wants to put in a house of worship or a daycare center and property C wants to do the same thing in our diagram then what they would apply for is another vocab phrase that we're going to want to know and it's called a special use permit or a conditional use permit you might have seen somewhere in the neighborhoods that you come from that maybe there's a home-based business or let's say a doctor's office connected to the back or the one part of a single family house and those uses are pre-conditioned or allowed subject to applying for a permit which is called a conditional use permit so a couple of more of the vocab phrases you want to be familiar with setback requirements zoning zoning hearing boards variances conditional or special use permits and non-conforming use and grandfathering all very popular in the policing section for your examinations now when we come back we're going to look at other policing powers and we're also going to continue and wrap up our discussion on police and go to the other Government powers coming up soon our next government power that we have to deal with as far as interest in real property is a very simple one but it's a classic one for examinations it's known as eminent domain and what eminent domain is is eminent domain is the right of government it's the constitutional right of government to basically take private citizens land for necessary public use now this is in all of the Constitutions across every state and the Federal Constitution so it's the takings ability for we the people we might feel that taking someone's land to utilize it for a way somewhat different than what they're using it for could be expanding a roadway for example that's the classic one to take that land and to expand the roadway so we can all benefit from that Improvement that's known as eminent domain and I want you to remember that it's the right of government now the process through which government takes the land is known as condemnation so condemnation is your next vocab phrase and condemnation is the process through which government takes the property for the right of eminent domain now before they can take our property what has to happen is they have to offer us compensation so another vocab phrase that goes hand in hand with eminent domain and condemnation happens to be compensation so for this purpose I want you guys to remember the three vocab phrases eminent domain condemnation and compensation now one component that they tend to test you on here there's a few things that you want to know number one eminent domain is a type of involuntary alienation remember the word alienation means to transfer so an involuntary transfer of my property I didn't want to lose my property but I'm forced to because of eminent domain so there it's an involuntary alienation now beyond the involuntary alienation component that you want to know for your exam you also want to know that we the people cannot take government land through eminent domain so the door only swings one way it's government-taking private citizens land not private citizen taking government land through eminent domain so taxation for the purposes of the examination is one of your Government powers if you look at the chart there's police power eminent domain which we just talked about Taxation and escheat now the taxation elements are there are several vocab phrases and we need to kind of focus on a couple of things we can get into a very long-winded discussion about taxation because it can go on and on and on and on but as far as taxation is concerned what you need to know for your exam purposes well number one taxation is a government power number two you guys want to know we have two components when it comes to taxes we have General real estate taxes which is an ad valerum tax and AD valarum taxes Latin for according to Value so that's a vocab phrase you definitely want to know on your examination and in the other component to taxation something called special assessment taxes special assessment taxes are for specific construction projects or improvements in a certain area so for example let's say we're improving sidewalks in one area in front of all these shops and let's say we're doing that and putting in new lights well the other community may not have to pay the tax for that maybe in that improvement district only the specific businesses that are profiting or benefiting from those improvements have to pay a special assessment very similar to a special assessment on a condo association if we have to replace the roof or something like that now let's talk a little bit more about General real estate taxes so number one you want to know that it's an ad valerum tax so ad valorem taxes are according to value and our specific taxes for that property they are specific taxes so we want to know that ad Valerian taxes affect only that parcel of property now the property owes the tax and typically the owner of the property will pay the tax but it's not the person that owes the tax it's the property now real estate is a favored source to be taxed and the reason why is it cannot be hidden very easily and it can be valued generally speaking pretty easily as well so we have all of these Mass appraisal techniques and we use very very familiar techniques and familiar ground when it comes to making these valuation determinations for what properties are and we take them and we lay them out across a jurisdiction and we come up with a tax that each property needs to pay and when we do that now the non-payment of these taxes could lead to an interest that the government does obtain in our property and they ultimately could sell our properties through the tax sale process which we'll talk about during a later segment but what I want you to know for right now is that ad valorem taxes our specific taxes and they have to be paid their involuntary liens that are automatically created on property and they are according to value so let's talk about what happens when we don't pay our real estate taxes now the first thing you guys want to know is the non-payment of my real estate taxes would allow the government an interest in our property now what do they obtain not paying a real estate taxes allows the government to place a lien on our property now this is an important type of lien this is known as in many jurisdictions a super lien a super lien is a type of lien that takes priority over all other types of liens so when this particular lien occurs then it takes precedence over every other type of situation or any other type of lien that's pre-existing on the property the government or we the people get paid back first so because we get paid back first everybody else has to stand in line so you want to know that the government or tax is the right of super lien now this is the big reason that mortgage companies go ahead and pay the real estate tax portion for the consumer so when you borrow money traditionally or typically for most banks then they are going to require that they collect impounds or escrows for the taxes and the insurance now by the insurance we're talking property Hazard insurance so in case that property Burns To The Ground the bank wants to make sure that they're protected and really at the end of the day all federally related transactions have to have some kind of insurance but for our discussion we're talking about the taxation so the taxes are collected by the bank and the bank collects 112th every month from the mortgage payment and disperses the taxes according to how they need to be paid in many jurisdictions that happens to be every quarter in some jurisdictions that could be every half year so the taxes are paid by the bank to make sure that they don't lose priority over the government when it comes to a tax lien so principal interest taxes and insurance are the four parts to a mortgage payment and that's another one that's definitely on your examination and when you guys take this thing you want to know what Piti stands for so once again it's principal interest taxes and insurance and for our discussion here the T for taxes applies for ad valorem taxes the final government power that we have to learn is something called escheat so we've just gone through police power we've gone through eminent domain and we've gone through taxation now we need to go ahead and talk about a street this one's really simple you just need to know the basic framework of it so a sheet is the right of government when a party dies without a will and that phrase is known as intestate so when somebody dies without a will they die intestate if they die with a will then they die to test it so if you were to pass intestate and you had no heirs to your estate then the government has the right of his cheat and the word is cheat means to revert back to so in essence what happens is our property real and personal if we have no one to give it to and we have no will and no heirs it will revert back to the government the government will take it sell the assets pay off any creditors and absorb the profits so as cheat is a type of involuntary alienation you want to know that and you want to know intestate when somebody passes in test date with no air years the government has the right of a sheet and that wraps up the police eminent domain taxation in the street component that covers all of the Government powers and when we come back we're going to look at the other side of this chart now and start to talk about all of the other items for example we're going to be covering things like Freehold Estates leasehold Estates and encumbrances foreign [Applause] [Music]