- On your deed, mortgage, note and title insurance, you will find a legal description. This is the identification of your certain parcel of property. There are three basic types of legal descriptions: metes and bounds, government survey system and lot and block description. Metes and bounds are the most accurate way of showing the boundaries to a parcel. It starts with a Point of Beginning, shows the measurements to each corner and closes the parcel by ending up at the Point of Beginning. The corners are then marked with monuments. On very old deeds, you will see they used trees and rocks as monuments, but they weren't permanent, so now the surveyors use concrete markers or metal posts. The government survey system was adopted by congress in 1785 for the purpose of surveying the Western Territory. The only state along the east coast that uses it is Florida. It's based on longitude and latitude and broken down into 6-mile sections. These sections are broken down again into range, township and section. Using this system, you can locate any property and tell the acreage of it. The system is very interesting to study and isn't as hard to use as it seems. A lot and block description can only be used in a platted recorded subdivision. Each section is broken down by block and then individual lot. Your tax office uses a parcel identification number that will use one or more of these descriptions.
- Planning and Zoning began in the United States during the colonial period when slaughterhouses and gunpowder mills were restricted to the outskirts of the community. Later, cities created fire districts and building height restrictions. There were some early attempts at city planning for Philadelphia, Savannah and Washington, D.C., but it didn't really take hold until the early 1900s. It wasn't until 1916 that any serious attempts were made to create and enforce zoning ordinances with the garment industry moving into the Fifth Avenue district of New York City. Most property owners weren't happy with the new restrictions on generating profit from their land without compensation. In 1926, the U.S. Supreme Court ruled that legally enacted zoning laws were constitutional. From then until the present, city planning and growth management has been on the rise across the nation. Now our zoning ordinances regulate use of our land, lot size and type of structure we can build on a particular parcel. They also tell us how far from our property lines we can build and how much area of our lot we are allowed to cover. Building codes set standards for materials, electrical wiring and fire prevention just to name a few. Most counties have a zoning board of adjustment to appeal to if a property owner feels the zoning laws have caused an undue hardship.
- By definition, real property is any interest or estate in land or any interest in a business opportunity or enterprise. There are many types of properties. Residential property can be a single family home or a multi-family home up to four units. It can also be parcels of land. Commercial property can be anything used for a commercial purpose, such as a warehouse, industrial plant or office building. Then there are condominiums, co-ops and time shares, which have their own set of rules and regulations. And as you can see from our definition, business opportunities and business enterprises have a section of their own. Estate types are divided according to the ownership interest. A freehold interest is an ownership interest and a nonfreehold estate is a leasehold interest. Ownership can be a sole owner, meaning one person or entity, or co-ownership, meaning more than one person or entity.
- There is a risk factor to everything you do and every investment you make, although real estate has proven over the long run to be a good long-term investment. Most of the risk factors involved with real estate is not knowing what is involved with the complete package. You either need to do research on market conditions, real estate laws and disclosures and inspections or hire someone with the expertise to tell you what and when it is a good investment. You wouldn't invest in the stock market without consulting someone with that type of knowledge and you shouldn't invest in real estate without knowledge either. The wrong market or a left out piece of paperwork can cost you a great deal of money and heartache. A major structural issue that wasn't caught because you didn't have the right inspections can turn your investment into your bankruptcy. Do things right, and you will always come out ahead in real estate.
- The benefits from owning real estate can be huge. There are many income tax deductions that can be used when you own real estate. Buying low and selling high can create a wonderful profit for you. If you are the type that can fix things yourself, the benefits are even more because you don't have to pay another to do it for you. Real estate is a big business and commercial real estate has made millionaires, but to those who can only buy their own houses have own sets of benefits. If you calculate the tax benefits into the overall picture, there is a savings compared to renting. You also have a savings account in your equity that you would not have if you were renting. But the best thing of all is that the house is yours. You can add on as your family grows and you have the piece of mind that no one will tell you that you have to move out.
