Modern Real Estate Practice in Pennsylvania 12 th

Modern Real Estate Practice in Pennsylvania 12 th Edition Chapter 2: Land-Use Controls and Property Development

2 Land-Use Controls and Property Development • Learning objectives – Identify the various types of public and private land-use controls – Describe how a comprehensive plan influences local real estate development – Summarize the Interstate Land Sales Full Disclosure Act – Explain the function and characteristics of building codes and zoning ordinances – Define key terms © 2012 Kaplan, Inc. 2

2 Land-Use Controls and Property Development • Government encourages private ownership – Municipalities develop comprehensive planning – Goal is planned and orderly growth • Licensees must be aware of local land-use restrictions – For development – For some residential communities having restrictions © 2012 Kaplan, Inc. 3

2 Land-Use Controls and Property Development • Public controls – Police power: authority to create regulations to protect public health, safety and welfare – States delegate powers to counties; counties delegate to local municipalities – May enact ordinances consistent with general laws – Used to control pollution (noise, air, water) and density, etc. © 2012 Kaplan, Inc. 4

2 Land-Use Controls and Property Development • Privately owned real estate • Regulated through the following: – Land-use planning – Zoning ordinances – Subdivision regulations – Building codes – Environmental protection legislation © 2012 Kaplan, Inc. 5

2 Land-Use Controls and Property Development • The comprehensive plan, or master plan – Developed locally (county and township) – Balances social and economic needs against environmental and aesthetic concerns – Provides goals and objectives for future development, including strategies and timing © 2012 Kaplan, Inc. 6

2 Land-Use Controls and Property Development • Pennsylvania Municipalities Planning Code – Land use – Housing needs – Movement of people and goods – Community facilities and utilities – Energy conservation • Requires analysis of trends and characteristics © 2012 Kaplan, Inc. 7

2 Land-Use Controls and Property Development • Zoning ordinances – Buffer zones – 14 th Amendment and Takings Clause (5 th Amendment) – Taking – Inverse condemnation • Building codes and certificates of occupancy © 2012 Kaplan, Inc. 8

2 Land-Use Controls and Property Development • Zoning permits – Zoning hearing board – Nonconforming use – Conditional use – Variance © 2012 Kaplan, Inc. 9

2 Land-Use Controls and Property Development • Subdivision – Subdivider – Developer – Land development plan • Plat – Subdivision plan – In Pennsylvania: adequate water supplies and environmentally sound sewage disposal – Subdivision density – Environmental protection © 2012 Kaplan, Inc. 10

2 Land-Use Controls and Property Development • Private land-use controls – Deed restrictions – Restrictive covenants (CC&Rs) – Enforcement • In Pennsylvania – Condo and planned unit development (PUD) buyers: must receive copies of pertinent documents to review © 2012 Kaplan, Inc. 11

2 Land-Use Controls and Property Development • Interstate Land Sales Full Disclosure Act – Disclosures must be given to buyers • • • Type of title Number of homes currently on-site Availability of recreation facilities Distance to nearby communities Utility services and charges Soil conditions and foundation or construction problems – Some exemptions © 2012 Kaplan, Inc. 12