In the U.S. real estate market, the government is an ordinary owner, like all other owners, and abides by the same rules.
Among the government functions related to real estate management, the government's role is primarily responsible for planning, through which it determines the use, building type, height, and density of each parcel of land and exercises land control.
Regulating real estate practitioners, mainly through the examination and licensing system for real estate brokers and salespersons, and the licensing system for real estate appraisers, to regulate the real estate market.
Collecting taxes in accordance with the law and exercising police powers in the public interest.
In addition, the government has no other functions in the management of the real estate market, and real estate activities are conducted in full accordance with the laws of the market.
The government's jurisdiction over land includes the following main areas.
Taxation
The government levies local taxes on landowners. Local taxes are one of the major taxes in the United States and the main means of regulating the allocation of land resources.
By levying local taxes, it can control land occupation and prevent the indiscriminate occupation of land, good land and acreage.
Some people inherit large tracts of land left by their ancestors, and if these lands cannot be sold, they do not earn a good income and often have to give up their property rights because they cannot pay the land tax.
These lands will eventually become the land of the federal government or the state government. Generally local taxes are owned by the local government and are mainly used for education spending.
The quality of education in a community is one of the main factors in determining the level of local taxes.
Police Powers
The government's police power in land management generally refers to the government's control over the use of land for the needs of the public interest.
Police powers are embodied by law and include mainly environmental protection regulations, planning regulations, building regulations, and leasing regulations.
Compulsory Expropriation
When land is expropriated in the public interest, the government can apply to the court for compulsory expropriation if negotiations with the owner fail to reach an agreement.
Three conditions must be met for compulsory expropriation.
First, the court decides that the expropriation is in the public interest.
Second, the homeowner has received reasonable compensation.
Third, there are sufficient legal procedures to protect the owner's interest.
Assumption of Uninherited Real Property
When the owner of real property dies without legal heirs and without a will to dispose of the real property, then the real property will revert to the government.
Master Plan
A master plan is prepared by a municipal or county government and focuses on planning the development goals of an area and coordinating social, economic and environmental relations.
Zoning Ordinance
A zoning ordinance, or statutory map, is the legalization of the master plan, and the master plan takes legal effect through the zoning ordinance.
The zoning ordinance regulates land use, parcel size, building types, building heights, building densities, building distances from roads, etc.
Building Code
The building code mainly stipulates building standards and guidelines, such as building material requirements, sanitary facilities, power distribution facilities, fire protection standards, etc.
According to the requirements of the building code, a building code certificate must be obtained for the construction of new buildings or alterations to existing buildings.
Upon completion of a new building, a certificate of occupancy will be issued, and upon completion of an alteration, a certificate of compliance will be issued.
Lot zoning rules
Zoning rules control the zoning of residential lots.
Because family homes in the U.S. are generally built on a single-family basis, each family occupies a separate piece of land and there are specific laws that govern how lots are divided to ensure a beautiful environment and safe and comfortable living.
The rules of parcel division mainly stipulate the size, distribution, slope, street width, building red line requirements, municipal facilities installation, and public land area.
In addition to the restrictions on land use imposed by planning laws and regulations, the Environmental Protection Law also imposes strict restrictions on land use.
Control of Private Land Use
In addition to government controls on land use, private owners and land subdividers often set some restrictions on land use when transferring land.
These restrictions are generally set out in the form of a contract, such as that no house with a floor area of less than 2,000 square feet can be built on the land.
Typically, private land use restriction contracts are registered with the registry and are also binding on subsequent transferees.