Unit 20 Land-Use Controls and Property Development Vocabulary

appreciation

An increase in the worth or value of a property due to economic or related causes, which may prove to be either temporary or permanent; opposite of depreciation.

buffer zone

A strip of land, usually used as a park or designated for a similar use, separating land dedicated to one use from land dedicated to another use (e.g., residential from commercial).

building code

An ordinance that specifies minimum standards of construction for buildings to protect public safety and health.

capital gain

Profit earned from the sale of an asset.

certificate of occupancy

Permission by the municipal inspector to occupy a completed building structure after being inspected and having complied with building codes.

comprehensive plan

A government plan to guide the long-term physical development of a particular area.

conditional-use permit

Written governmental permission allowing a use inconsistent with zoning but necessary for the common good, such as locating an emergency medical facility in a predominantly residential area.

covenants, conditions, and restrictions (CC&Rs)

Private agreements that affect land use. They may be enforced by an owner of real estate that benefits from them and can be included in the seller's deed to the buyer.

deed restrictions

Clauses in a deed limiting the future uses of the property. They may impose a vast variety of limitations and conditions—for example, they may limit the density of buildings, dictate the types of structures that can be erected, or prevent buildings from being used for specific purposes or even from being used at all.

density zoning

Zoning ordinances that restrict the maximum average number of housing units per acre that may be built within a particular area, generally a subdivision.

developer

One who attempts to put land to its most profitable use through the construction of improvements.

enabling acts

State legislation that confers zoning and other powers on municipal governments.

equity buildup

That portion of the loan payment directed toward the principal rather than the interest, plus any gain in property value due to appreciation.

exchanges

A transaction in which all or part of the consideration is the transfer of like-kind property (e.g., real estate for real estate).

Interstate Land Sales Full Disclosure Act (ILSA)

A federal law that regulates the sale of certain real estate in interstate commerce.

leverage

The use of borrowed money to finance an investment

liquidity

The ability to sell an asset and convert it into cash, at a price close to its true value, in a short period of time.

nonconforming use

A loan that exceeds the Federal Housing Finance Agency (FHFA) loan limits; also called a jumbo loan.

planned unit development (PUD)

A planned combination of diverse land uses, such as housing, recreation, and shopping, in one contained development or subdivision.

plat map

A map of a town, section, or subdivision indicating the location and boundaries of individual properties.

restrictive covenants

A clause in a deed that limits the way the real estate ownership may be used.

subdivider

One who buys undeveloped land, divides it into smaller, usable lots and sells the lots to potential users.

subdivision

A tract of land divided by the owner, known as the subdivider, into blocks, building lots, and streets according to a recorded subdivision plat, which must comply with local ordinances and regulations.

variance

Permission obtained from zoning authorities to build a structure or conduct a use that is expressly prohibited by the current zoning laws; an exception from the zoning ordinances.

zoning ordinances

An exercise of police power by a municipality to regulate and control the character and use of property.