California Real Estate Chapter 5
Subdivision
"A division of one parcel of land into two or more parcels or lots."
Nonconforming Uses
"A formerly legal use that doesn't conform to a new zoning ordinance, but is nonetheless allowed to continue" "Arise when an area is zoned for the first time, or when a zoning ordinance is amended. Certain established uses that were previously lawful may not conform to the rules laid down in the new ordinance. These nonconforming uses will be permitted to continue."
Grandfather clause
"A nonconforming use provision in a zoning ordinance" "However, even though nonconforming uses are "grandfathered in" and allowed to remain, the local government usually prefers to have all properties in a zone eventually conform to the current rules. So an ordinance might require nonconforming uses to be phased out by a certain deadline" "Even in the absence of such a deadline, the owner of a nonconforming use property is often prohibited from enlarging the use, rebuilding if the property is destroyed, or resuming the use after abandoning it."
Street Improvement Act of 1911
"Allows government entities to make street improvements and bill the affected property owners. If the bills remain unpaid for more than 30 days, bonds will be issued to pay for the improvements. Funds raised under this act can be used to pay for street paving, sidewalks, curbs, drainage systems, and other street improvements. The funds cannot be used to purchase land for development" If a property is sold with a special assessment bond against it, the value remaining on the bond will become part of the cost of the property. An assessment under this law is typically made according to each lot's frontage (the number of front feet).. A special assessment is a one-time charge to pay for a particular project. (Property owners are usually allowed to pay the charge in installments, however.)
Planned developments
"Also common interest subdivisions. A typical planned development looks like a standard subdivision, since each lot is improved with a single-family home. But a planned development consists of lots that are separately owned, plus areas that are owned in common and reserved for the use of some or all of the individual lot owners. As in a condominium, the common areas are generally managed and maintained by an owners association. The association charges the lot owners fees to pay for the management and maintenance of the common areas."
Variances
"An authorization to deviate from the rules in a zoning ordinance, granted because strict enforcement would cause undue hardship for the property owner" "Authorization to build or maintain a structure or use that is ordinarily prohibited by the zoning ordinance" "If a zoning law were strictly enforced, the property owner's injury would far outweigh the benefit of enforcing the zoning requirement. Under these circumstances, a variance may be available" "In most communities, the property owner applies to the local zoning authority for a variance" "A variance usually won't be granted unless the property owner can show that without the variance she will be deprived of privileges available to most other property owners in the zone. A variance should not be granted simply in order to allow a property owner to make a more profitable use of her land than the zoning rules permit." "Most variances authorize only minor deviations from the zoning law. A variance should not reduce the value of neighboring property, change the essential character of the neighborhood, or conflict with the community's general plan. In California, local authorities may not grant use variances—variances that authorize a land use that is otherwise not permitted in a zone. For instance, a variance allowing a commercial or retail use in a single-family residential zone cannot be granted."
Building Codes
"Another exercise of the police power. Building codes are regulations that set minimum standards for construction methods and materials. Building codes protect the public from unsafe or unworkmanlike construction. They are generally divided into specialized codes, such as a fire code, an electrical code, and a plumbing code. The codes set minimum standards for construction methods and materials, to protect the public. The codes are enforced through the building permit system" A structure that was built before a new, stricter standard is enacted may still be required to meet the new standard." "Enforcement of building codes is usually accomplished through the building permit system. A property owner must obtain a permit from the city or county before constructing a new building or repairing, improving, or altering an existing building" "The permit requirement allows officials to inspect the building plans to verify that building codes and zoning ordinances have been satisfied. Once the completed construction has been inspected and found satisfactory, a certificate of occupancy is issued." "In California, the state Housing Law sets forth minimum construction and occupancy requirements for residential construction. These requirements are enforced by local building inspectors. The construction industry is also regulated through the state Contractors License Law"
Timeshare
"Another type of common interest subdivision. In a timesharing arrangement, buyers purchase the exclusive right to possession of the property for a specified period each year. A timeshare could be developed for any kind of housing, but it is most commonly used for resort condominiums."
Subdivision Regulations
"Another way in which state and local governments control land use is by regulating subdivisions" "California requires subdividers to comply with both the Subdivision Map Act and the Subdivided Lands Law. In certain cases, a subdivider may also have to comply with the Interstate Land Sales Full Disclosure Act, a federal law"
Other Special Taxes
"California law also allows some other types of special taxes to be assessed against real property. These tend to be hybrids, resembling general real estate taxes in some ways (they can be used to pay for ongoing services) and special assessments in others (special taxing districts may be created to cover the properties that benefit from the services or improvements funded by the taxes)." "One example is the type of assessment authorized by the Mello-Roos Community Facilities Act of 1982" "The lien created by a special tax can sometimes be foreclosed on more quickly than a lien for general real estate taxes" "In a sale of residential property with up to four dwelling units, the seller is required to make a good faith effort to provide the buyer with a notice of the special tax from each agency that assesses such a tax against the property"
Planning commission
"California requires cities and counties to have a planning agency" "Responsible for designing and adopting a comprehensive, long-term plan for all the development within the city or county."
Zoning Exceptions & Amendments
"Complications inevitably arise when zoning regulations are administered and enforced. So zoning ordinances provide for certain exceptions and changes to their rules, including: -nonconforming uses, -variances, -conditional uses, -rezones A zoning exception or change can be requested by an individual property owner, a developer, or a city or county government. These requests are heard by the local zoning authority."
Zoning
"Divides a community into areas (zones) that are set aside for a particular type of use, such as agricultural, residential, commercial, or industrial use. Each of these basic classifications typically has subcategories. For instance, an industrial district could be divided into a light industrial zone and a heavy industrial zone. A residential district could be divided into single-family zones (often designated as R-1 zones) and multifamily zones (often called R-3 zones). Keeping various uses in separate zones helps ensure that only compatible uses are located in the same area. In addition, areas zoned for incompatible uses maybe separated by undeveloped areas called buffers"
Standard Subdivisions
"Each owner owns a separate parcel of land. A standard subdivision is technically defined as one with no common rights of either ownership or use among the various owners of the individual parcels created by the division. Standard subdivisions usually consist of five or more lots that have been improved with utilities. Individuals may purchase a lot on which to build their own home, or developers may purchase several or all of the lots, build houses on the lots, and then sell the homes to individual homeowners."
Pollution Control Laws
"Federal legislation sets national standards for air and water quality and requires the states to implement these objectives. Permits are required for the discharge of pollutants into the air or water."
Collection of Taxes
"General real estate taxes are levied annually, on or before September 1 for each tax year" "The state fiscal tax year runs from July 1 through June 30 of the next calendar year. The tax lien attaches to the property on the previous January 1. So the lien for the July 2010-June 2011 tax year attached on January 1, 2010. Since the taxes aren't levied until September, the specific amount of the tax lien isn't known when the lien attaches. A tax bill is mailed to each property owner on or before November 1 of each year. The tax bill reflects the property's assessed value, less any exemptions to which the property owner is entitled. The assessed value is multiplied by the tax rate (no more than 1%), and the result is the amount of tax the property owner must pay. An owner may pay his taxes in two installments, or may pay the total amount when the first installment is due. The first installment is due on November 1, covers the period from July through December, and is delinquent if not paid by 5:00 pm on December 10. The second installment is due February 1, covers the period from January through June, and is delinquent if not paid by 5:00 pm on April 10. A 10% penalty is added to any delinquent payment" "If the property taxes are not paid, the tax collector can foreclose on the tax lien. First a notice of impending default is published, and the property owner is informed that he must pay the taxes by June 30. If the taxes remain delinquent after June 30, the property is considered "in default" and a five-year redemption period begins to run. (The redemption period is three years for commercial properties.) During this five-year period, the owner can keep possession of the property and has the opportunity to redeem it by paying the back taxes, interest, costs, and other penalties. If the property has not been redeemed by the end of the five-year period, the tax collector can sell the property at a tax sale and apply the proceeds to the tax debt. Any surplus from the sale is paid to the former owner or other parties who had an interest in the property" A sale of real property is not subject to sales tax. However, if a sale of real property includes the transfer of tangible personal property, sales tax must be paid on the sale of the personal property. Sales tax is most often a factor in the sale of a business opportunity, where inventory and trade fixtures may be sold along with the real property. The sale of intangible personal property, such as business goodwill, is never taxed.
Advertising purposes
"If a final public report is used for advertising purposes, it must be used in its entirety. A subdivider cannot, in an advertisement, refer to any improvements or facilities that do not actually exist, unless their completion is provided for with a bond. And an artist's rendering of the subdivision cannot be used in any advertisement unless it is described as such"
Out-of-State Subdivisions
"If property in a subdivision located in another state is offered for sale in California, the subdivision must be registered with the California Department of Real Estate. Advertising and sales contracts must have disclaimers explaining that the DRE hasn't inspected or approved the subdivision."
Laws Regulating Subdivisions
"In California: -the Subdivision Map Act, -the Subdivided Lands Law, -the Interstate Land Sales Full Disclosure Act. "A number of federal and state environmental laws affect land use, including: -NEPA, -CERCLA, -CEQA, -the California Coastal Act, -the Alquist-Priolo Act
Undivided Interest Subdivisions
"Individual owners own undivided interests in a parcel of land and have a nonexclusive right to use and occupy the property. The undivided interests are typically tenancies in common. An example of an undivided interest subdivision is a recreational vehicle park"
Parcel map
"Instead of tentative and final maps, a parcel map can be filed for subdivisions with two to four parcels. A parcel map doesn't have to be as detailed as a tentative subdivision map or a final map"
Final subdivision public report
"Is issued only if the subdivision meets the requirements set forth in the Subdivided Lands Law. A report will be denied: 1. if there is any evidence that the subdivision is unsuitable for the use proposed by the subdivider, 2. if there is no assurance that purchasers will get what they've paid for." "To obtain a final public report for a residential subdivision, the subdivider must be able to show that streets and other improvements will be completed and that there will be adequate drinking water and other utilities. The subdivider also must be able to demonstrate that any deposit money will be made secure, that there are satisfactory arrangements to clear any mechanic's liens or blanket mortgage liens (for instance, with the use of impound or escrow accounts), and that when the transaction is completed, title will be conveyed to the purchaser." "A public report includes the following information: -the subdivider's name and the project's name, location, and size; -the legal interest to be acquired by the purchaser; -the procedure for handling -the purchase money; -the amount of any taxes and assessments; -any private restrictions; -any unusual costs the purchaser will have to bear; -any hazards or adverse environmental factors; and -any unusual or potentially harmful financial or conveyancing arrangements "Must be given to anyone who requests it, and all prospective purchasers must receive a copy of the report before entering into a sales agreement. They must also sign a receipt proving that they received a copy of the report. That receipt must be kept by the subdivider for at least three years. A final public report is valid for five years, unless a material change occurs in the subdivision. Material changes include physical changes to the subdivision itself (such as new street or lot lines), changes in the documents used to transfer or finance lots, the sale of five or more lots to one party, or new conditions that affect the value or use of lots." "Often, the Commissioner issues a preliminary report before issuing the final report" "If the Commissioner discovers that a subdivider is violating any provisions of the Subdivided Lands Law, the Commissioner can stop the violations or sales of the lots with a desist and refrain order"
Environmental Laws
"Laws aimed at preserving and protecting the physical environment, and many local governments have additional environmental regulations. These laws can have a substantial impact on the ways in which a property owner is allowed to use her land."
Final map
"Must bear the signatures of the owners and of representatives of each public utility or other entity that considered the tentative map. Must be filed within 24 months of tentative map approval No sale, lease, or contract for the sale or lease of any subdivided property is valid until a final map is filed"
Alquist-Priolo Act
"Pursuant to the Alquist-Priolo Act, certain areas of the state are delineated as earthquake fault zones (sometimes called "special studies zones") on maps prepared by the state geologist. Requires disclosure of geologic hazards, such as earthquake faults, as part of the application for new residential development in certain areas The zones follow traces of potentially active faults and are usually a quarter of a mile wide. If property is located in a fault zone, an application for new development or construction generally must include a geologic report evaluating the property's earthquake risks. When property in a fault zone is sold, the seller and the seller's agent must inform buyers that the property is in such a zone."
Taxation of Real Property
"Real property taxes affect property ownership. While taxation of property doesn't directly limit use, it affects title. Property taxation creates liens against the taxed property, and if the taxes aren't paid, the government can foreclose. The taxes create liens, and if the property owner fails to pay the taxes, the government can sell the property to collect the money owed. Real property taxation has always been a popular method of raising revenue because land has a fixed location, is basically indestructible, and is impossible to conceal. While collection of other types of taxes can be difficult, collection of taxes on real property generally isn't a problem. The taxes will almost certainly be collected sooner or later, with or without the cooperation of the property owner. In this section, we will discuss these types of taxes on real property: -general real estate taxes (also called ad valorem taxes), -special assessments (also called improvement taxes), -other special real property taxes, and -the documentary transfer tax (also called an excise tax)"
Zoning ordinances
"Regulate the height, size, and shape of buildings, as well as their use. They also usually include setback and side yard requirements, which prescribe the minimum distance between a building and the property lines. These regulations control population density, provide aesthetic guidelines, and help preserve adequate open space and access to air and daylight. To be valid, zoning ordinances cannot be applied retroactively, cannot discriminate against a particular parcel of property, and cannot create a patently unfair situation." "Zoning ordinances provide for certain exceptions to their rules: non-conforming uses, variances, and conditional uses. They also have procedures for rezones"
Zoning vs. Private Restrictions
"Sometimes private restrictions impose stricter limits on property than the local zoning ordinance" "The general rule is that the more restrictive requirement must be met" "In cases where the zoning is more restrictive than a private restriction, the zoning will take precedence"
California Coastal Act
"The Coastal Act established the Coastal Commission, which researches ways to protect the state's coastline and controls development along the coast. It has several regional divisions. No development is allowed in the coastal zone without a permit from the appropriate regional board"
Preliminary report
"The Commissioner issues a preliminary report before issuing the final report. If the developer gives a prospective buyer a copy of a preliminary report, the buyer can reserve a lot in the subdivision. But until the buyer receives the final report, he has the right to back out and have any deposit refunded in full. Preliminary reports expire after one year, but may be renewed"
Ad valorem
"The amount of tax owed depends on the value of the property Ad valorem is a Latin phrase that means "according to value."
Police power
"The basis for land use control laws" "This is the power vested in a state government to adopt and enforce laws and regulations necessary for the protection of the public's health, safety, morals, and general welfare—is the basis for land use control laws A state may delegate its police power to local governmental bodies. It is the police power that allows state and local governments to regulate the use of private property. The U.S. Constitution does not give the federal government a general power to regulate for the public health, safety, morals, and welfare. But the federal government does have authority to use its other powers to advance police power objectives." "An exercise of the police power must meet constitutional limitations. As a general rule, a land use law or regulation will be considered constitutional if it meets these four criteria: 1. It is reasonably related to the protection of the public health, safety, morals, or general welfare. 2. It applies in the same manner to all property owners who are similarly situated (in other words, it is not discriminatory). 3.It does not reduce a property's value so much that the regulation amounts to a confiscation—an uncompensated taking of property. 4. It benefits the public by preventing harm that would be caused by the prohibited use of the property." "Government land use controls take a variety of forms: -comprehensive plans, -zoning ordinances, -building codes, -subdivision regulations, -environmental laws All of these are intended to protect the public from problems that unrestricted use of private property can cause. If two different government entities have passed conflicting laws based on the police power, the one with the stricter standards of health and safety will apply.
Just compensation
"The fair market value of the property"
Condemnation
"The legal process by which private property is taken for public use by the government exercising its power of eminent domain. When a particular property is needed for a public use or purpose, the government first offers to buy it from the owner. If the owner refuses to sell for the price offered, the government files a condemnation lawsuit. The court will order the property to be transferred to the government. The owner's only grounds for objection are that the intended use of the property is not a public use, or that the price offered is not just compensation. (Just compensation is usually defined as the fair market value of the property.) A local government can use the power of eminent domain to implement its general plan. For example, to fulfill the plan's open space goals, several pieces of private property might be condemned for use as a public park."
Eminent Domain
"The power of eminent domain is the federal or state government's power to take private property for a public use upon payment of just compensation to the owner" "The government can regulate the use of private property with a variety of laws—zoning ordinances, building codes, and so on. These laws are based on the police power, the government's power to regulate for the public health, safety, morals, and general welfare. Another governmental power that can affect land use is the power of eminent domain." "A state government may delegate the power of eminent domain to local governments, and to private entities that serve the public, such as utility companies and railroads" "Involves a "taking" of private property: property is taken away from the owner, and the Constitution requires the government to pay the owner compensation. In an exercise of the police power, private property is regulated, but not taken away from the owner. The government is not required to compensate the owner for a proper exercise of the police power, even though the action (such as a zoning change) may significantly reduce the value of the property"
Base value
"The purchase price of a home" The purchase price of a home becomes its base value. (If a home was last purchased prior to 1975, the property's 1975 value is its base value.) As long as the same person owns the property and no improvements are made, its assessed value can't increase more than 2% per year. If the owner improves the property (by building a deck, for example), the assessed value may be increased by the amount the improvements add to the actual value." "Unless the transaction is exempt from reassessment on a change in ownership, the assessed value may be stepped up to the price paid or to the fair market value at the time of the transfer. That becomes the new base value"
Assessment
"The valuation of property for purposes of taxation" "General real estate taxes are ad valorem taxes." In order to impose ad valorem taxes, there must be an assessment. An assessment is a valuation of property for purposes of taxation. This valuation is the responsibility of the county assessor's office. "In California, property assessment and taxation are governed by Proposition 13, an initiative passed by voters in 1978 that amended the state constitution. Under Proposition 13, real property must be assessed by the county assessor at its full cash value, unless otherwise provided by law. Full cash value means market value, the most probable price the property would sell for under normal market conditions. And as a general rule, the tax rate, which is set by the county's Board of Supervisors, may not exceed one percent of the property's full cash value. Protection from drastic tax increases is given to those who own the same home for a long period of time.
Subdivision types
"There are various types of subdivisions in California, including: -standard, -common interest, -undivided interest subdivisions. Subdivisions are usually residential, but they may be -commercial, -industrial, -recreational.
Reassessment Exceptions
"To avoid the harsh result of an increased assessment following a transfer of title when the property hasn't been sold or traded for profit, the law exempts several types of transfers from reassessment "The following transfers are exempt: -transfers where the method of holding title is changed but the ownership isn't; -certain transfers between parents and children; and -transfers between spouses or registered domestic partners." "Also, when a homeowner who is over 55 or severely and permanently disabled sells her home and replaces it with another home in the same county, the assessed value of the old home can be used as the assessed value of the new home. An owner who thinks the assessed value of her property is unfairly high can appeal the assessment to the county. In some counties, appeals are made to the Board of Supervisors. In larger counties, appeals are made directly to a separate Assessment Appeals Board. The market value of the new home must be equal to or less than the market value of the old home, and the new home must be purchased within two years after the sale of the old one. A seller who purchases a replacement home in a different county may or may not be able to transfer the assessed value of the old home to the new home. That will depend on the laws of the county where the new home is located."
Comprehensive Planning
"Unrestricted and unplanned development can have undesirable results"
Mello-Roos Community Facilities Act of 1982
"Used for a greater variety of improvements, facilities, and services than traditional special assessments" "A Mello-Roos lien might be foreclosed on after payment has been delinquent for only 180 days, in contrast to the five-year redemption period allowed for delinquent general real estate taxes"
Public use or Public purpose
"What constitutes a public use or public purpose can be a matter of controversy. In a 2005 case called Kelo v. City of New London, the U.S. Supreme Court ruled that it was constitutional for a Connecticut city to condemn private property in an economically distressed neighborhood in order to develop an urban village complex with shops, restaurants, a hotel, office space, and residences. The Court decided that the goal of the plan, economic development, fulfilled the public use requirement even though the city was going to sell the property to private owners. In 2008, in response to the Kelo decision, California voters passed an initiative that generally prohibits the state and local governments from exercising the power of eminent domain to take an owner-occupied residence for conveyance to a private party. It's important to understand the distinction between eminent domain and the police power."
Tentative subdivision map
"When land is subdivided into five or more parcels, the subdivider must file a tentative subdivision map with the local planning agency. The tentative map includes: -the legal description of the property -shows the proposed lot boundaries, -the location of utility easements and access roads, -proposed street widths, -the source of the water supply, -the provisions for control of flooding and geologic hazards. The planning agency sends copies of the map to other government agencies for their recommendations. These government agencies include transportation, health, and parks departments; school districts; city or county surveyors; and public utilities. The subdivider has the burden of demonstrating to these agencies that the off-site improvements, such as streets, curbs, sewers, and utilities, are adequate. Once these agencies report back to the planning agency, it can approve or reject the tentative map, or approve it on the condition that the subdivider take certain actions. For example, the planning agency may require the subdivider to dedicate some of the subdivision property for public streets." "Once the planning agency approves a tentative map, the subdivider has a limited period (generally 24 months, plus possible extensions) to file a final map, showing the subdivision in its final form"
Change in ownership statement
"When the property is sold or otherwise transferred, the new owner must file a change in ownership statement with the county recorder or assessor within 45 days of the transfer" Unless the transaction is exempt from reassessment, the property's assessed value will be stepped up to reflect the price paid by the new owner. A property is reassessed each time it's sold.
Tax Exemptions
"While the general rule is that all property is taxed at its full cash value, there are numerous total or partial exemptions. Property owned by the federal, state, or local government is totally exempt from taxation; so is most property that's used for religious, educational, charitable, welfare purposes, publicly owned property, property used for religious purposes, and property owned by some nonprofit organizations. There are also partial exemptions for owner-occupied homes and homes owned by veterans, senior citizens, and the disabled." Don't confuse these property tax exemptions with the homestead exemption. The homestead exemption is not subtracted from the property's assessed value and has no effect on the property taxes.
Common Interest Subdivisions
("Common interest development, or CID" "An individual owner owns or leases a separate lot or unit along with an undivided interest in the common areas of the project. Condominium and cooperative projects are examples of common interest subdivisions. For example, a condominium owner owns her residential unit in severalty, but also has an undivided interest in the common areas of the condominium project, such as the lobby, elevators, parking lot, and recreational facilities"
Appeals Board
(Board of equalization) "Has the power to adjust the assessed value of property" "Property owners who are dissatisfied with the assessment of their property may appeal to the county. In some counties, appeals are handled by the Board of Supervisors. Larger counties have a separate Assessment Appeals Board" "An appeal is based on the property owner's claim that the property tax burden has been applied inconsistently, because similar properties in the neighborhood have been assessed differently"
CEQA
(California Environmental Quality Act) "This California law is similar to the National Environmental Policy Act. CEQA requires state or local agencies to prepare an environmental impact report (EIR) for any project (public or private) that may have a significant impact on the environment. An EIR is not required only if the public agency overseeing the project rules that the project won't have significant adverse effects; this is called a negative declaration. A public hearing is held for each EIR. Alternatives to the proposed action must be considered, and the developer may be required to make changes in the project to reduce its impact."
CERCLA
(Comprehensive Environmental Response, Compensation, and Liability Act) "A federal law, concerns liability for environmental cleanup costs. In some cases, the current owners of contaminated property may be required to pay for cleanup, even if they did not cause the contamination. The law is enforced by the federal Environmental Protection Agency (EPA)."
EIR
(Environmental impact report)
EIS
(Environmental impact statement) "Examines a proposed project's probable environmental effects (both positive and negative)on energy consumption, water facilities, sewage systems, drainage, and many other environmental, economic, and social factors, and also discusses alternatives to the proposal. A planning or zoning agency will consider the EIS when deciding whether to approve the project"
Master plan
(General plan) (Comprehensive plan) "A comprehensive, long-term plan for all the development within the city or county" The agency responsible for preparing the plan is usually called the planning commission. "A local government implements its general plan with zoning ordinances and other laws" "The purpose of the general plan is to outline the community's development goals and design an overall physical layout to achieve those goals. Once a general plan has been adopted, all development and all land use regulations for the area must conform to it. To implement the plan, the local government uses its police power to pass zoning ordinances and other laws, and may also use the power of eminent domain to acquire property for public use"
ILSA
(Interstate Land Sales Full Disclosure Act) "A federal consumer protection law concerning subdivisions of vacant land offered for sale or lease in interstate commerce. It has registration requirements (requiring developers to register their projects with a division of the Department of Housing and Urban Development) and anti-fraud provisions (requiring disclosure of information to buyers and prohibiting misleading sales practices and advertising). The anti-fraud provisions generally apply to subdivisions with 25 or more vacant lots, and the registration requirements generally apply to subdivisions with 100 or more vacant lots, but there are numerous exemptions"
Special Assessments
(Local improvement taxes) "Are levied to pay for improvements that benefit particular properties, such as the installation of street lights, sewers, or the widening of a street. The assessment is intended to cover the cost of the improvement. Only the properties that benefit from the improvement are taxed, on the theory that the value of those properties is increased by the improvement." "Street improvements are assessed against each lot that benefits from the improvements on the basis of the front footage of the lot" "A special assessment is usually a one-time tax, although the property owners may be allowed to pay the assessment in installments. When property that's subject to a special assessment is sold, the assessment is considered part of the acquisition cost of the property. Like general real estate taxes, special assessments create liens against the taxed properties. If an owner fails to pay a special assessment, the government can foreclose on her property" "California has several statutes that authorize special assessments. One example is the Street Improvement Act of 1911" Special assessments are not used to pay for ongoing government operations. If improvements are made under the Street Improvement Act of 1911, property owners have 30 days to pay the bill for improvements before the bill goes to bond.
NEPA
(National Environmental Policy Act) "A federal law that requires federal agencies to prepare an environmental impact statement (EIS) for governmental actions planned or approved would have a significant impact on the environment. NEPA also applies to private uses or developments that require the approval of a federal agency"
General Real Estate Taxes
(Property taxes) General real estate taxes are a tax on the ownership of real property. They are often simply called property taxes, and they are also called ad valorem taxes, which means they are based on the property's assessed value. The more valuable the property, the higher the taxes. In California, a property's assessed value cannot increase more than two percent per year. "Taxes are levied to support the general operation and services of government. "Taxes levied against real property annually to pay for general government services. When general real estate taxes are levied against a piece of property, the amount owed is determined according to the value of the property. The more valuable the property, the higher the taxes. They are based on the value of the property taxed (ad valorem)" Public schools and police and fire protection are examples of government services paid for with general real estate tax revenues. These taxes are levied by a number of governmental agencies, such as cities, counties, school districts, and water districts. Thus, a single property can be situated in five or six taxing districts" "If a property is transferred in the middle of a tax year, the new owner must pay a supplemental assessment for the remainder of the tax year. The supplemental assessment takes into account the difference between the previous assessed value and the new assessed value. A seller (or a seller's agent) is required to give a prospective buyer a notice explaining that the buyer may receive one or two supplemental tax bills, and that the buyer will be responsible for paying the additional taxes; the buyer's lender won't pay them out of the impound account maintained in connection with the buyer's loan"
Conditional use permits
(Special exception permits) "A permit that allows a special use, such as a school or a hospital, to operate in a neighborhood where it would oth"erwise be prohibited by the zoning." "Allowing a limited number of these uses to operate in compliance with specified conditions" "A property owner might be given a conditional use permit to build a private school in a residential neighborhood, as long as the school meets certain requirements for parking, security, and so on."
Conditional Uses
(Special exceptions) A special use that is allowed to operate in a neighborhood where it would otherwise be prohibited by the zoning. "Various special uses, such as schools, hospitals, and places of worship, don't fit into the ordinary zoning categories. These uses are considered necessary to the community, yet they may have adverse effects on neighboring properties. So in most communities, the zoning authority can issue conditional use permits"
Earthquake fault zones
(Special studies zones)
Rezones
(Zoning amendment) "An amendment to a zoning ordinance; a property owner who feels his property has been zoned improperly may apply for a rezone" "If a property owner believes that his property has been zoned improperly, he may petition the local zoning authority for a rezone" "Usually, notice must be given to surrounding landowners and a hearing must be held before a decision is made on a petition. When an area is rezoned to a more restrictive use (for example, a change from multifamily dwellings to single-family dwellings), it's referred to as downzoning."
Common interest development (CID)
**See Common Interest Subdivisions
Special exception permits
**See Conditional use permits
General plan
**See Master plan "A comprehensive, long-term plan of development for a community, which is implemented by zoning and other laws"
Zoning amendment
**See Rezones
Distinctions between general real estate taxes & special assessments
1. General real estate taxes are levied to pay for ongoing government services, such as police protection. A special assessment is levied to pay for a specific improvement, such as adding sidewalks to a section of street. 2. General real estate taxes are levied against all taxable real property within a taxing district, for the benefit of the entire community. A special assessment, on the other hand, is levied against only those properties that benefit from the improvement in question. 3. General real estate taxes are levied every year. A special assessment is a one-time tax, levied only when a property is benefited by a public improvement." General Real Estate Taxes: 1. Levied against all properties 2. Ad valorem 3. Annual tax Special Assessments: 1. Levied against properties that benefit 2. Based on cost of improvement 3. One-time charge
Subdivided Lands Law
A "consumer protection" law, one that requires the subdivider to disclose certain information to lot buyers In most cases, the subdivider must submit tentative and final subdivision maps to the local planning agency for approval. If there are no more than four lots, a less detailed parcel map can be submitted instead. "Requires a subdivider to disclose certain information to buyers. It applies to most residential subdivisions with five or more lots. The five lots need not be contiguous if they are part of the same project. The Subdivided Lands Law also applies to mobile home parks and planned developments with five or more lots; to condominiums, community apartment projects, and cooperatives with five or more units; and to some residential timeshare projects. Leases of apartments, offices, and stores within a building are exempt from the law, as are leases in mobile home parks for five years or less. Subdivisions that are entirely within the limits of an incorporated city may also be exempt if the developer complies with certain rules. Also exempt are subdivisions with parcels that are 160 acres or larger, and industrial or commercial subdivisions. Lots or units in a subdivision covered by the act can't be sold, leased, or financed until the Real Estate Commissioner investigates it and issues a final subdivision public report"
Subdivision Map Act
A "procedural" law, one that sets forth the procedures that must be followed to subdivide land In most cases, the subdivider must submit tentative and final subdivision maps to the local planning agency for approval. If there are no more than four lots, a less detailed parcel map can be submitted instead. "Establishes a set of procedures that must be followed before a subdivision can be created. It gives cities and counties the power to control the formation of subdivisions, and it sets out rules for the exercise of that power" "Ensures that new subdivisions comply with the local general plan and that adequate public utilities are provided for each new subdivision" "Applies whenever a single parcel of land is subdivided into two or more parcels (lots or units), but its most important provisions affect only subdivisions with five or more parcels."
Certificate of occupancy
A document issued by the governing authority stating that a building complies with applicable laws and permitting occupancy for its designated use.
Interstate Land Sales Full Disclosure Act
A federal consumer protection law that applies to subdivision lots sold in interstate commerce.
8. Which of these is NOT an exercise of the police power? A. Condemnation B. Building code C. Zoning ordinance D. Subdivision regulations
A. Condemnation
3. Which of the following is NOT likely to be one of the goals of a land use control law? A. Ensuring that properties are put to their most profitable use B. Controlling growth and population density C. Ensuring that neighboring uses are compatible D. Preserving access to light and air
A. Ensuring that properties are put to their most profitable use
15. Lots in a subdivision cannot be sold until: A. a final map is filed with the local planning agency B. a parcel map is filed with the Office of Interstate Land Sales C. a preliminary public report is issued by the Commissioner D. a building permit has been issued
A. a final map is filed with the local planning agency
14.The documentary transfer tax is based on the property's: A. selling price B. fair market value C. current use D. highest and best use
A. selling price
9. Eminent domain differs from the police power in that: A. the government is required to compensate the property owner B. it can be exercised only by the state government, not a city or county government C. it affects only the use of the property, not the title D. the property must be unimproved
A. the government is required to compensate the property owner
A
Agricultural
R-4
Any other type of housing. Mobile homes
7. Which of these is an example of a variance? A. Changing a zoning ordinance to allow commercial uses in a neighborhood that was formerly zoned residential B. Authorizing a structure to be built only 12 feet from the lot's boundary, although the zoning ordinance requires 15-foot setbacks C. Allowing a grocery store to continue in operation after the neighborhood is zoned residential D. Approving the subdivision of a parcel of land into two or more lots
B. Authorizing a structure to be built only 12 feet from the lot's boundary, although the zoning ordinance requires 15-foot setbacks
11. A special assessment is the same thing as: A. a general real estate tax B. an improvement tax C. a real estate excise tax D. a transfer tax
B. an improvement tax
1. The police power is the government's power to: A. take private property for public use B. enact laws for the protection of the public health, safety, morals, and general welfare C. tax property to pay for police protection D. None of the above
B. enact laws for the protection of the public health, safety, morals, and general welfare
13. Which of these is a state law that requires an environmental impact report to be prepared in certain circumstances? A. ILSFDA B. CERCLA C. CEQA D. NEPA
C. CEQA
10. The Hancocks are planning to add a room onto their house. Before construction begins, they are probably required to: A. request a zoning inspection B. submit a proposal to the planning commission C. obtain a building permit D. All of the above
C. obtain a building permit
5. An owner who feels that his property was improperly zoned should apply for a: A. conditional use permit B. variance C. rezone D.nonconforming use permit
C. rezone
12. General real estate taxes are: A. used to support the general operation and services of government B. levied annually C. based on the value of the taxed property D. All of the above
D. All of the above
2. Which of the following is likely to be controlled by a zoning ordinance? A. Use of the property B. Building height C. Placement of a building on a lot D. All of the above
D. All of the above
4. As a general rule, when a new zoning ordinance goes into effect, nonconforming uses: A. must comply with the new law within 90 days B. must shut down within 90 days C. will be granted conditional use permits D. are allowed to continue, but not to expand
D. are allowed to continue, but not to expand
6. A hospital is being built in a residential neighborhood. This was probably authorized by a: A. nonconforming use permit B. variance C. rezone D. conditional use permit
D. conditional use permit
R-1
Detached single family homes
Smart growth
Developing additional density in areas that are already developed, rather than increasing sprawl.
R-2
Duplexes & Row houses
EPA
Environmental Protection Agency
Desist and refrain
If a subdivider is violating any provision of the Subdivided Lands Law, the Commissioner may stop the violation with a desist and refrain order.
California Housing Law
In California, in addition to local building codes, minimum construction and occupancy requirements are enforced through the state Housing Law.
R-3
Multifamily Apartments and Condo's
Uniform Building Code
Regulations enforced by the local government stating how construction methods and issues should be implemented (code primarily used in the western and central portions of the United States) If conflicts exist between local building codes and state or federal codes, whichever has the higher standards of health and safety will prevail.
Negative declaration
Significant adverse effects
Contractors License Law
The construction and housing industries are also regulated through the Contractors License Law
Buffers
Undeveloped areas
Documentary Transfer Tax
When a 1- to 4-unit residential property in California is sold, the seller must make a good faith effort to provide the buyer with notice of any special taxes assessed against the property. "An excise tax is levied on each sale of real property in California" "The tax is based on the property's selling price. As a general rule, the rate is fifty-five cents per $500 of value, or fraction thereof. (In certain cities, the rate is higher.)" "A house is sold for $402,200. $402,200 ÷ $500 = 804.40 805 × $0.55 = $442.75 The seller is required to pay $442.75 for the documentary transfer tax" "The documentary transfer tax does not apply to the amount of any loan the buyer is assuming or taking title subject to. If the buyer in the example above had assumed the seller's existing $325,200 trust deed, the tax would be due only on the $77,000 difference between the sales price and the assumed loan. Then the tax would be only $84.70"
Downzoning
When an area is rezoned to a more restrictive use (for example, a change from multifamily dwellings to single-family dwellings), it's referred to as downzoning."
Building permit
Written governmental permission for the construction, alteration, or demolition of an improvement, showing compliance with building codes and zoning ordinances. See certificate of occupancy The building permit system is a way of enforcing compliance with building codes. It is a valid exercise of the state's police power, protecting public health and safety.
