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

2 ©2012 Kaplan, Inc. 2Land-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

3 ©2012 Kaplan, Inc. 2Land-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

4 ©2012 Kaplan, Inc. 2Land-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.

2Land-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 5 ©2012 Kaplan, Inc.

6 2Land-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

7 ©2012 Kaplan, Inc. 2Land-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

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

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

10 ©2012 Kaplan, Inc. 2Land-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

11 ©2012 Kaplan, Inc. 2Land-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

12 ©2012 Kaplan, Inc. 2Land-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