28: The Nature and Regulation of Real Estate and the Environment
- Page ID
- 11171
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\(\newcommand{\avec}{\mathbf a}\) \(\newcommand{\bvec}{\mathbf b}\) \(\newcommand{\cvec}{\mathbf c}\) \(\newcommand{\dvec}{\mathbf d}\) \(\newcommand{\dtil}{\widetilde{\mathbf d}}\) \(\newcommand{\evec}{\mathbf e}\) \(\newcommand{\fvec}{\mathbf f}\) \(\newcommand{\nvec}{\mathbf n}\) \(\newcommand{\pvec}{\mathbf p}\) \(\newcommand{\qvec}{\mathbf q}\) \(\newcommand{\svec}{\mathbf s}\) \(\newcommand{\tvec}{\mathbf t}\) \(\newcommand{\uvec}{\mathbf u}\) \(\newcommand{\vvec}{\mathbf v}\) \(\newcommand{\wvec}{\mathbf w}\) \(\newcommand{\xvec}{\mathbf x}\) \(\newcommand{\yvec}{\mathbf y}\) \(\newcommand{\zvec}{\mathbf z}\) \(\newcommand{\rvec}{\mathbf r}\) \(\newcommand{\mvec}{\mathbf m}\) \(\newcommand{\zerovec}{\mathbf 0}\) \(\newcommand{\onevec}{\mathbf 1}\) \(\newcommand{\real}{\mathbb R}\) \(\newcommand{\twovec}[2]{\left[\begin{array}{r}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\ctwovec}[2]{\left[\begin{array}{c}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\threevec}[3]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\cthreevec}[3]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\fourvec}[4]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\cfourvec}[4]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\fivevec}[5]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\cfivevec}[5]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\mattwo}[4]{\left[\begin{array}{rr}#1 \amp #2 \\ #3 \amp #4 \\ \end{array}\right]}\) \(\newcommand{\laspan}[1]{\text{Span}\{#1\}}\) \(\newcommand{\bcal}{\cal B}\) \(\newcommand{\ccal}{\cal C}\) \(\newcommand{\scal}{\cal S}\) \(\newcommand{\wcal}{\cal W}\) \(\newcommand{\ecal}{\cal E}\) \(\newcommand{\coords}[2]{\left\{#1\right\}_{#2}}\) \(\newcommand{\gray}[1]{\color{gray}{#1}}\) \(\newcommand{\lgray}[1]{\color{lightgray}{#1}}\) \(\newcommand{\rank}{\operatorname{rank}}\) \(\newcommand{\row}{\text{Row}}\) \(\newcommand{\col}{\text{Col}}\) \(\renewcommand{\row}{\text{Row}}\) \(\newcommand{\nul}{\text{Nul}}\) \(\newcommand{\var}{\text{Var}}\) \(\newcommand{\corr}{\text{corr}}\) \(\newcommand{\len}[1]{\left|#1\right|}\) \(\newcommand{\bbar}{\overline{\bvec}}\) \(\newcommand{\bhat}{\widehat{\bvec}}\) \(\newcommand{\bperp}{\bvec^\perp}\) \(\newcommand{\xhat}{\widehat{\xvec}}\) \(\newcommand{\vhat}{\widehat{\vvec}}\) \(\newcommand{\uhat}{\widehat{\uvec}}\) \(\newcommand{\what}{\widehat{\wvec}}\) \(\newcommand{\Sighat}{\widehat{\Sigma}}\) \(\newcommand{\lt}{<}\) \(\newcommand{\gt}{>}\) \(\newcommand{\amp}{&}\) \(\definecolor{fillinmathshade}{gray}{0.9}\)After reading this chapter, you should understand the following:
- The various kinds of interests (or “estates”) in real property
- The various rights that come with ownership of real property
- What easements are, how they are created, and how they function
- How ownership of real property is regulated by tort law, by agreement, and by the public interest (through eminent domain)
- The various ways in which environmental laws affect the ownership and use of real property
Real property is an important part of corporate as well as individual wealth. As a consequence, the role of the corporate real estate manager has become critically important within the corporation. The real estate manager must be aware not only of the value of land for purchase and sale but also of proper lease negotiation, tax policies and assessments, zoning and land development, and environmental laws.
In this chapter, we focus on regulation of land use and the environment. We divide our discussion of the nature of real estate into three major categories: (1) estates; (2) rights that are incidental to the possession and ownership of land—for example, the right to air, water, and minerals; and (3) easements—the rights in lands of others.
- 28.1: Estates
- This page discusses various types of real property estates, including freehold and leasehold interests, and details fee simple absolute and defeasible, as well as life estates. It explains future interests such as reversion and remainder. The example of Harriet Hartley's life estate, where her son Alexander holds a future interest, illustrates the concepts.
- 28.2: Rights Incident to Possession and Ownership of Real Estate
- This page discusses property owners' rights over airspace, minerals, and water related to their land. It explains that while landowners traditionally own the space above and below their properties, conflicts arise from encroachments and air traffic. Water rights vary by region, with eastern states using a "reasonable use" doctrine and western states applying a "prior appropriation" doctrine based on the order of usage. The content emphasizes the complexities inherent in property law.
- 28.3: Easements- Rights in the Lands of Others
- This page explains the distinctions between easements and licenses, defining easements as land interests permitting use of another’s property and licenses as revocable permissions. It categorizes easements into affirmative or negative and appurtenant or in gross. The text details the creation of easements through express agreement, implication, or prior use, and discusses the rights of both easement owners and servient landowners, highlighting their limitations and protections.
- 28.4: Regulation of Land Use
- This page explores the regulation of land use through tort law, private agreements, and public regulation. Key topics include landowner liability for nuisances, the concept of attractive nuisance, and the interpretation of restrictive covenants. It highlights the government's power of eminent domain and the role of zoning regulations, including the potential for variances.
- 28.5: Environmental Law
- This page outlines the evolution of federal environmental protection laws since the late 1960s, highlighting key legislation such as NEPA, the Clean Water Act, and the Clean Air Act. The EPA, established in 1970, oversees compliance and air/water quality. Significant amendments to these acts, particularly in 1990, introduced stricter regulations and penalties. Waste management and chemical regulation are central to this legislation, including laws governing noise emissions and nuclear safety.
- 28.6: Cases
- This page summarizes two legal cases: one involving cottage owners and a farmer over water usage from Hutchins Lake, where the court upheld the farmer's right to use water despite environmental concerns; and another concerning defendants indicted for mishandling hazardous waste, where the court ruled that RCRA applies to all responsible parties, not just owners/operators, allowing for potential liability for aiding and abetting violations.
- 28.7: Summary and Exercises
- This page explores real property interests, differentiating between freehold and leasehold estates, as well as present and future estates. It details various present estates (e.g., fee simple absolute, life estates) and future estates (e.g., reversion, remainder). The text addresses land use rights regarding air, earth, and water, including state-specific water rights.