AAEC 4303REAL PROPERTY AND IT’S APPRAISALLEGALLEGAL MATTERS PERTAINING TO LANDECONOMICSOCIALREAL ESTATE VS. REAL PROPERTYPROPERTY RIGHTS “BUNDLE OF RIGHTS”Slide 9OTHER TYPES OF OWNERSHIP INTERESTSlide 11REAL ESTATE VS. PERSONAL PROPERTYSlide 13GOVERNMENTAL POWERSSlide 15PRIVATE LIMITATIONSAPPRAISALPURPOSE AND USE OF AN APPRAISALAAEC 4303 - Property AppraisalAAEC 4303 - Property AppraisalAAEC 4303AAEC 4303PROPERTY APPRAISALPROPERTY APPRAISALAAEC 4303 - Property AppraisalAAEC 4303 - Property AppraisalREAL PROPERTY AND IT’S REAL PROPERTY AND IT’S APPRAISALAPPRAISALLAND => CONCEPTSLAND => CONCEPTS1.1.LEGAL - PROPERTY RIGHTSLEGAL - PROPERTY RIGHTS2.2.ECONOMIC - VALUEECONOMIC - VALUE3.3.SOCIAL – LAND OWNERSHIP IS A SOCIAL – LAND OWNERSHIP IS A FUNDAMENTAL AMERICAN FUNDAMENTAL AMERICAN PRESUITPRESUITAAEC 4303 - Property AppraisalAAEC 4303 - Property AppraisalLEGALLEGALLAWS IN THE U.S. THAT GOVERN THE LAWS IN THE U.S. THAT GOVERN THE USE OF LAND GIVE THE LANDOWNER USE OF LAND GIVE THE LANDOWNER THE GREATEST POSSIBLE FREEDOM THE GREATEST POSSIBLE FREEDOM TO DECIDE LAND USE.TO DECIDE LAND USE.REAL ESTATE APPRAISING INVOLVES REAL ESTATE APPRAISING INVOLVES THE VALUATION OF REAL PROPERTY THE VALUATION OF REAL PROPERTY RIGHTS.RIGHTS.AAEC 4303 - Property AppraisalAAEC 4303 - Property AppraisalLEGAL MATTERS PERTAINING LEGAL MATTERS PERTAINING TO LANDTO LANDEASEMENTSEASEMENTSACCESS REGULATIONSACCESS REGULATIONSUSE RESTRICTIONS (ZONING)USE RESTRICTIONS (ZONING)RECORDING OF TITLERECORDING OF TITLECONVEYANCE OF TITLECONVEYANCE OF TITLEAAEC 4303 - Property AppraisalAAEC 4303 - Property AppraisalECONOMICECONOMICCENTRAL TO APPRAISAL THEORY IS THE CENTRAL TO APPRAISAL THEORY IS THE CONCEPT THAT LAND IS A SOURCE OF CONCEPT THAT LAND IS A SOURCE OF WEALTH AND AN OBJECT OF VALUE.WEALTH AND AN OBJECT OF VALUE.LAND IS:LAND IS:–UNIQUE IN LOCATION AND COMPOSITIONUNIQUE IN LOCATION AND COMPOSITION–PHYSICALLY IMMOBILEPHYSICALLY IMMOBILE–DURABLEDURABLE–SUPPLY IS FINITESUPPLY IS FINITE–HAS USEHAS USEAAEC 4303 - Property AppraisalAAEC 4303 - Property AppraisalSOCIALSOCIALLAND OWNERSHIP IS A FUNDAMENTAL LAND OWNERSHIP IS A FUNDAMENTAL AMERICAN PURSUIT. AMERICAN PURSUIT.AAEC 4303 - Property AppraisalAAEC 4303 - Property AppraisalREAL ESTATEREAL ESTATEVS.VS.REAL PROPERTYREAL PROPERTYREAL ESTATE – REAL ESTATE – THE PHYSICAL LAND AND APPURTENANCES THE PHYSICAL LAND AND APPURTENANCES AFFIXED TO THE LAND.AFFIXED TO THE LAND.REAL PROPERTY -REAL PROPERTY - ALL INTEREST, BENEFITS, AND RIGHTS ALL INTEREST, BENEFITS, AND RIGHTS INHERENT IN THE OWNERSHIP OF REAL INHERENT IN THE OWNERSHIP OF REAL ESTATE.ESTATE.AAEC 4303 - Property AppraisalAAEC 4303 - Property AppraisalPROPERTY RIGHTSPROPERTY RIGHTS“BUNDLE OF RIGHTS”“BUNDLE OF RIGHTS”1. USE1. USE2. SELL2. SELL3. LEASE3. LEASE4. ENTER INTO4. ENTER INTO5. GIVE AWAY5. GIVE AWAY6. DO NOTHING6. DO NOTHINGAAEC 4303 - Property AppraisalAAEC 4303 - Property AppraisalIF YOU HAVE ALL OF THE PROPERTY RIGHTS, YOU HAVEFEE SIMPLE TITLEABSOLUTE OWNERSHIP, UNENCUMBERED BY ANY OTHER INTERESTAAEC 4303 - Property AppraisalAAEC 4303 - Property AppraisalOTHER TYPES OF OTHER TYPES OF OWNERSHIP INTERESTOWNERSHIP INTERESTLEASE FEE ESTATELEASE FEE ESTATE–OWNERSHIP INTEREST HELD BY THE OWNERSHIP INTEREST HELD BY THE LANDLORD WITH THE REGHT OF USE LANDLORD WITH THE REGHT OF USE CONVEYED TO OTHERS.CONVEYED TO OTHERS.LEASEHOLD ESTATELEASEHOLD ESTATE–RIGHTS OF USE HELD BY THE LESSEERIGHTS OF USE HELD BY THE LESSEEAAEC 4303 - Property AppraisalAAEC 4303 - Property AppraisalINDIVIDUAL RIGHTS IN PROPERTY INDIVIDUAL RIGHTS IN PROPERTY CAN BE SOLD, LEASED, CAN BE SOLD, LEASED, TRANSFERRED, OR OTHER WISE TRANSFERRED, OR OTHER WISE DISPOSED OF SEPARATELY.DISPOSED OF SEPARATELY.AN EXAMPLE WOULD BE MINERAL AN EXAMPLE WOULD BE MINERAL RIGHTSRIGHTSAAEC 4303 - Property AppraisalAAEC 4303 - Property AppraisalREAL ESTATEREAL ESTATEVS.VS.PERSONAL PROPERTYPERSONAL PROPERTYPERSONAL PROPERTY – PERSONAL PROPERTY – INCLUDES MOVABLE ITEMS OF INCLUDES MOVABLE ITEMS OF PROPERTY THAT ARE NOT PROPERTY THAT ARE NOT PERMANENTLY AFFIXED TO REAL PERMANENTLY AFFIXED TO REAL ESTATE. PERSONAL PROPERTY IS ESTATE. PERSONAL PROPERTY IS NOTNOT ENDOWED WITH THE RIGHTS OF ENDOWED WITH THE RIGHTS OF REAL PROPERTY OWNERSHIPREAL PROPERTY OWNERSHIPAAEC 4303 - Property AppraisalAAEC 4303 - Property AppraisalPROPERTY RIGHTS ARE PROPERTY RIGHTS ARE EXCLUSIVE, BUT NOT ABSOLUTEEXCLUSIVE, BUT NOT ABSOLUTE..–WHEN PROPERTY RIGHTS ARE HELD WHEN PROPERTY RIGHTS ARE HELD BY INDIVIDUALS, THEY CAN EXCLUDE BY INDIVIDUALS, THEY CAN EXCLUDE ALL OTHERS FROM ACCESS TO OR ALL OTHERS FROM ACCESS TO OR USE OF THE PROPERTY.USE OF THE PROPERTY.–HOWEVER, THE EXCLUSIVE RIGHTS HOWEVER, THE EXCLUSIVE RIGHTS HELD BY INDIVIDUALS ARE ALWAYS HELD BY INDIVIDUALS ARE ALWAYS SUBJECT TO THE CONTROLS AND SUBJECT TO THE CONTROLS AND LIMITATIONS VESTED IN THE LIMITATIONS VESTED IN THE SOVEREIGN POWER.SOVEREIGN POWER.AAEC 4303 - Property AppraisalAAEC 4303 - Property AppraisalGOVERNMENTAL POWERSGOVERNMENTAL POWERSTAXATION: THE RIGHT OF GOVERNMENT TAXATION: THE RIGHT OF GOVERNMENT TO RAISE REVENUE THROUGH TO RAISE REVENUE THROUGH ASSESSMENTS OF GOODS, PRODUCTS AND ASSESSMENTS OF GOODS, PRODUCTS AND RIGHTS.RIGHTS.EMINENT DOMAIN: THE RIGHT OF EMINENT DOMAIN: THE RIGHT OF GOVERNMENT TO TAKE PRIVATE PROPERTY GOVERNMENT TO TAKE PRIVATE PROPERTY FOR PUBLIC USE UPON THE PAYMENT OF A FOR PUBLIC USE UPON THE PAYMENT OF A JUST COMPENSATION.JUST COMPENSATION.AAEC 4303 - Property AppraisalAAEC 4303 - Property AppraisalPOLICE POWER: THE RIGHT OF POLICE POWER: THE RIGHT OF GOVERNMENT UNDER WHICH PROPERTY IS GOVERNMENT UNDER WHICH PROPERTY IS REGULATED TO PROTECT PUBLIC SAFETY, REGULATED TO PROTECT PUBLIC SAFETY, HEALTH, MORALS, AND THE GENERAL HEALTH, MORALS, AND THE GENERAL WELFARE.WELFARE.ESCHEAT: THE RIGHT OF GOVERNMENT ESCHEAT: THE RIGHT OF GOVERNMENT THAT GIVES THE STATE OWNERSHIP OF A THAT GIVES THE STATE OWNERSHIP OF A PROPERTY WHEN IT'S OWNER DIES PROPERTY WHEN IT'S OWNER DIES WITHOUT A WILL OR ANY WITHOUT A WILL OR ANY ASCERTAINABLE HEIRS.ASCERTAINABLE HEIRS.AAEC 4303 - Property AppraisalAAEC 4303 - Property AppraisalPRIVATE LIMITATIONSPRIVATE LIMITATIONSRESTRICTIVE COVENANTSRESTRICTIVE COVENANTS–MAY IMPOSE PRIVATE CONTROLS ON MAY IMPOSE PRIVATE CONTROLS ON THE USE OF LANDTHE USE OF LANDEASEMENTSEASEMENTS–GIVE OTHERS THE RIGHT TO USE THE GIVE OTHERS