REE4433-4

REE4433

TEST 4 NOTES

APRIL 27 2007

Pay particular attention to all the details of the terms and examples

CHAPTER 34

(Mostly review from previous Chapters)

The Declaration of Restrictions, Easements, Liens, and Covenants: The Master Deed

I. Restrictions

a. Restrictions are ways that current owners can control their property even after they sell it.

b. Developers often use restrictive covenants. New neighborhoods have restrictive covenants set by the homeowner’s association

i. Rule of perpetuity

1. States that land cannot be tied to restrictions forever. They can be restricted for a long period of time but not forever

II. Easements

a. Easements are another way that the owner of a property can control their private land after they sell the property

b. The parcel that benefits from the easement is called dominant; the parcel that provides the easement is called the servient.

i. If the parcels are side by side they are considered to have an appurtenant easements

ii. If the parcels are separated from each other they are considered to have an ‘in-gross’ easement

iii. A affirmative easement is an easement where the dominant physically intervenes in the servient’s property

1. Example: The public walking on a easement for a walkway on private property to access the beach

iv. A negative easement is an easement where there is no physical intervention from the dominant parcel. The negative easement is to prevent the servient parcel from doing something

1. Example: The dominant parcel can restrict the servient parcel from building a bigger house in order for the dominant to have more visibility around the house.

III. Liens

a. Examples of liens on real estate

i. Mortgage

ii. Judgment

iii. Property tax

IV. Covenants

a. Restrictive covenants are mostly seen in residential properties

b. A person can place a restrictive covenant on the property before he/she sells it to prevent the new owner from doing something inadequate

1. A owns two lots near the beach. Lot 1 is a beach front lot and Lot 2 is behind Lot 1. A sold the beach front Lot 1 to B and kept Lot 2. B decided to tear the old property down and built a much taller new house. A could not see the ocean from Lot 2 anymore. A should have included in the sale contract for Lot 1 a restrictive covenant to prevent this from happening.

V. Master Deed

a. When a developer develops a subdivision, easements and covenants must be created.

i. When a lot in the subdivision is sold, the buyer receives a deed with all the covenants, easements and terms of the purchase.

ii. When another lot is sold, the developer must do the same thing and create another deed for the second person.

iii. A master deed allows the developer to save paper and money used to make copies because it contains all the deeds of the subdivision in one compilation.

1. When a second lot is sold, the developer refers back to the master deed and gives the buyer a deed with all the covenants listed on the master deed.

2. A master deed saves the developer money on recording fees because once the master deed is recorded; every deed in the subdivision is recorded.

Chapter 35

Planned Unit Developments

I. PUD (Planned Unit Development)

a. A developer should look at the local ordinances to see what the requirements are for getting a PUD.

i. If a developer has a large tract of land, he/she can apply to get a PUD that overrides the zoning laws

ii. The planned unit development rules vary by counties and cities

b. An existing zoning violation makes a property unmarketable. However if the property is in a PUD area, then it might be exempt from the zoning laws. PUD requirements tend to be less restrictive than zoning laws.

1. Example: A house is 14 feet away from the boundary line. The zoning laws state that is has to be 15 feet away from the boundary line. The PUD (which the house is in) only requires the house to be 13 feet or more away from the boundary line. In this case the house would be marketable.

a. PUD’s override what the zoning laws say because the PUD’s and zoning laws are made by the same people.

c. The Florida Department of Community Affairs manages all the growth in Florida.

II. Common Areas

a. PUD’s are often used for the common areas in a homeowner’s association

III. Mixed Uses

a. PUD’s can be used for commercial, residential or others.

i. Example: A PUD might allow the developer to develop part of the PUD for homes and the other part of land for businesses.

IV. Town homes

a. The term “town home” is a description of a construction technique.

b. Town homes are usually two story units next to another two story unit. The front yard of the two properties is usually common area and the backyard is usually separately owned.

c. The town home technique is a more efficient use of real estate than single family homes but offers less privacy to the residents.

d. Town homes usually have easements to allow electricity, cable, water and other utilities to run through the town home.

V. Business parks

a. Not every subdivision is used for single family homes.

b. Some developers can develop a subdivision for businesses as well

i. Example: Innovation Park in Tallahassee

1. This area was developed for businesses.

2. The intention is to allow the businesses created in this area to profit from the local technology in the magnet lab, engineering school and others.

a. The theories, information, and research that come from this technology can be beneficial.

VI. Industrial parks

a. Additionally, subdivisions can be developed specifically for industries.

These would be located near a railroad, airport or interstate to allow for easier logistics of raw materials



	REE4433 REE4433 TEST 4 NOTES APRIL 27 2007 *Pay particular attention to all the details of the terms and examples* CHAPTER 34 (Mostly review from previous Chapters) The Declaration of Restrictions, Easements, Liens, and Covenants: The Master Deed I. Restrictions a. Restrictions are ways that current owners can control their property even after they sell it. b. Developers often use restrictive covenants. New neighborhoods have restrictive covenants set by the homeowner’s association i. Rule of perpetuity 1. States that land cannot be tied to restrictions forever. They can be restricted for a long period of time but not forever II. Easements a. Easements are another way that the owner of a property can control their private land after they sell the property b. The parcel that benefits from the easement is called dominant; the parcel that provides the easement is called the servient. i. If the parcels are side by side they are considered to have an appurtenant easements ii. If the parcels are separated from each other they are considered to have an ‘in-gross’ easement iii. A affirmative easement is an easement where the dominant physically intervenes in the servient’s property 1. Example: The public walking on a easement for a walkway on private property to access the beach iv. A negative easement is an easement where there is no physical intervention from the dominant parcel. The negative easement is to prevent the servient parcel from doing something 1. Example: The dominant parcel can restrict the servient parcel from building a bigger house in order for the dominant to have more visibility around the house. III. Liens a. Examples of liens on real estate i. Mortgage ii. Judgment iii. Property tax IV. Covenants a. Restrictive covenants are mostly seen in residential properties b. A person can place a restrictive covenant on the property before he/she sells it to prevent the new owner from doing something inadequate 1. A owns two lots near the beach. Lot 1 is a beach front lot and Lot 2 is behind Lot 1. A sold the beach front Lot 1 to B and kept Lot 2. B decided to tear the old property down and built a much taller new house. A could not see the ocean from Lot 2 anymore. A should have included in the sale contract for Lot 1 a restrictive covenant to prevent this from happening. V. Master Deed a. When a developer develops a subdivision, easements and covenants must be created. i. When a lot in the subdivision is sold, the buyer receives a deed with all the covenants, easements and terms of the purchase. ii. When another lot is sold, the developer must do the same thing and create another deed for the second person. iii. A master deed allows the developer to save paper and money used to make copies because it contains all the deeds of the subdivision in one compilation. 1. When a second lot is sold, the developer refers back to the master deed and gives the buyer a deed with all the covenants listed on the master deed. 2. A master deed saves the developer money on recording fees because once the master deed is recorded; every deed in the subdivision is recorded. Chapter 35 Planned Unit Developments I. PUD (Planned Unit Development) a. A developer should look at the local ordinances to see what the requirements are for getting a PUD. i. If a developer has a large tract of land, he/she can apply to get a PUD that overrides the zoning laws ii. The planned unit development rules vary by counties and cities b. An existing zoning violation makes a property unmarketable. However if the property is in a PUD area, then it might be exempt from the zoning laws. PUD requirements tend to be less restrictive than zoning laws. 1. Example: A house is 14 feet away from the boundary line. The zoning laws state that is has to be 15 feet away from the boundary line. The PUD (which the house is in) only requires the house to be 13 feet or more away from the boundary line. In this case the house would be marketable. a. PUD’s override what the zoning laws say because the PUD’s and zoning laws are made by the same people. c. The Florida Department of Community Affairs manages all the growth in Florida. II. Common Areas a. PUD’s are often used for the common areas in a homeowner’s association III. Mixed Uses a. PUD’s can be used for commercial, residential or others. i. Example: A PUD might allow the developer to develop part of the PUD for homes and the other part of land for businesses. IV. Town homes a. The term “town home” is a description of a construction technique. b. Town homes are usually two story units next to another two story unit. The front yard of the two properties is usually common area and the backyard is usually separately owned. c. The town home technique is a more efficient use of real estate than single family homes but offers less privacy to the residents. d. Town homes usually have easements to allow electricity, cable, water and other utilities to run through the town home. V. Business parks a. Not every subdivision is used for single family homes. b. Some developers can develop a subdivision for businesses as well i. Example: Innovation Park in Tallahassee 1. This area was developed for businesses. 2. The intention is to allow the businesses created in this area to profit from the local technology in the magnet lab, engineering school and others. a. The theories, information, and research that come from this technology can be beneficial. VI. Industrial parks a. Additionally, subdivisions can be developed specifically for industries. These would be located near a railroad, airport or interstate to allow for easier logistics of raw materials