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Private and Public Land Use Controls | Real Estate Exam Prep Videos - YouTube
Channel: The Real Estate Classroom
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all right welcome to today's video
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thanks for joining us
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again as i said in the opener we're
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going to be discussing two key concepts
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that you
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have to know for your real estate
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licensing exam and quite frankly
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it is something that is is pretty um uh
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something you need to know in the real
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estate profession itself and that is
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public and private land use controls now
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understand from a previous video that i
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did on what we call the bundle
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of rights that video outlined
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all the things that you as a private
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owner of
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real property the interest in the things
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that you can do
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with that property you can lease it
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excuse me you can lease it you can
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mortgage
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it you could rent the property out uh
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you could
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uh you have subsurface rights and air
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rights and
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and surface all that stuff all that
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stuff we discussed as the
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bundle of rights all the things that
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you're legally allowed to do because of
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the interest you have in that property
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well as the history of the company or
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the the country progressed from
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true absolute ownership in 1776 to where
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we are today
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uh there is mechanisms that were put
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into place where it allowed
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individual owners to place restrictions
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on the property for future owners
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and there was a mechanism put into place
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for government agencies to impose
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restrictions or use controls on the
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property
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as well for the benefit of the general
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public and we're going to discuss
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both of these concepts here in this
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video
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all right so the first concept i want to
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talk about is what's called private land
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use controls this is where
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private owners of real property they
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place what's called a
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deed restriction and that is a key real
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estate term that
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you must know for your real estate
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licensing exam
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so that private owner places a deed
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restriction
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in that deed and what it does
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is the new owner is buying that property
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or they hold it title to that property
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what's called subject to quote unquote
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subject to compliance with that deed
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restriction
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now deed restrictions must comply with
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zoning laws and
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they can't be contrary to a law or a
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fair housing
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law or something like that so let me let
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me kind of illustrate what i'm talking
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about here so
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many years ago i owned a piece of
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property in iowa now iowa
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is an abstract state and we did discuss
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abstracts in a previous video and
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and i was reading through the abstract
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because remember an abstract is
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basically a
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history book of the ownership of that
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property from the time it was first land
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patented all the way to
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to date and somewhere around 1920
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there was an owner of this piece of
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property
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and she was the mom and the mom
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transferred title to
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the sun with a deed restriction
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and the deed restriction said that if
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the son
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ever married a particular girl from
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a specific family and she named the
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family the actual name of the family in
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in that deed restriction then
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the property the title to the property
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would automatically revert to
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the uh catholic church another thing
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that was very common uh prior to the
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fair housing laws
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is a d like i could put a
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deed restriction in the property that
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said this property can never be owned by
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african americans and if it was
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then it would you know title would
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revert to
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whoever uh that was legal up until the
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point we started putting the civil
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rights laws and the fair housing laws
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into into the books and now those type
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of things
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are illegal in fact i just did not too
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long ago fair housing training for a
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condominium regime
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and they had an old master deed and we
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discussed that
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in a that's a key real estate term for a
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different video
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but in the master deed it said no
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children can live in the condominium
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regime
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well obviously that now violates fair
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housing law as of 1988
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where family status is protected is a
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protected class
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but they never updated the master deed
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and so that is an example of deed
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restrictions that were put into place
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that are illegal but a deed restriction
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in this context is where private owners
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are placing uh they're placing
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restrictions for future owners not only
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the the the immediate future owner but
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subsequent owners now the most common
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type of
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private land use control excuse me is
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what's called a
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covenant now covenants are very
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prominent in the real estate sales
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community
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just about every new subdivision has
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some type of covenant put
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put into place now covenants are are
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really known as covenants conditions and
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restrictions or sometimes referred to as
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a
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ccnr they are a deed restriction that's
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been placed into that
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deed by the developer
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okay that developer is a private owner
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that's
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passing title on to that property to you
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or me but you have to comply with the
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covenants
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now covenants restrict the the property
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owner's
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uh ability to use the property and here
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are some very common
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i guess some restrictions that we see in
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covenants and i have them on your screen
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here
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fencing the type of fencing can you have
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a fence
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and if you want a fence do you have to
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go to the homeowners association to
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get approval the height of the fence
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the style of the home there are some
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subdivisions that have covenants that
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only allow
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certain styles maybe ranches and two
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stories only they don't allow split
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entries
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minimum square footage requirements so
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the homes built in that subdivision
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have to have a certain minimum square
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footage requirement the color of the
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home is another popular one so you're
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limited on the colors that you may
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paint your home parking restrictions you
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can't park rvs and boats for
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no more than 72 hours is a common one
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exterior buildings can you have the shed
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in the back to put the lawnmower in
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um flags it's not listed on there but
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flags is one that we hear all about
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in the news and then rentals can this
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property be a rental property or not
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uh understand this is just a few of
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the the multitude of different
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restrictions that
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can be placed into covenants and
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it's the homeowners association that
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typically is tasked with
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enforcing the covenants and issuing
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citations and violations and those type
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of deals
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those are private land use control
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restrictions the next one is i want to
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talk about is public
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land use controls now with public land
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use controls this
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is where government agencies your city
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your county
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maybe the state or even the federal
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government they are
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imposing restrictions on your property
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that you
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own uh most common ones are things like
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zoning laws so if your property is zoned
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residential you can't have a garage
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there unless you go through the proper
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variance
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process uh building codes is another one
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environmental laws and then the last one
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is wildlife protection and most of the
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time
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this has to this comes from the federal
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uh
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bank of of statutes but for example i
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actually knew
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a couple that purchased 40 acres of
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timberland
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in oregon and they purchased it they had
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a mortgage on it
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everything and then the
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it was discovered that there was spotted
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owls on the
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property and that that at that time the
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spotted owl was on the endangered
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species list so
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they had purchased the property and the
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property was valued based on the wood
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the timber that was on there
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yet the owners once that spotted owl was
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discovered and the federal government
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said you cannot touch the property they
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could do no logging
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and that is placing land
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use controls on that property now
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understand under public land use
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controls
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as we discussed in a different video
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under police powers because
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all of this are all of these things on
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your screen are examples of police
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powers
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there is no compensation and title
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does not pass to the government so the
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the government just places the
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the the controls into place they're not
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going to compensate you for that
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nor is title passed to the government
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under these particular types of land use
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controls
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all right so if you're going to continue
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studying i highly recommend that you
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check out this video right here on
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zoning very important because zoning in
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in these two doctrines go hand in foot
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and if you have not subscribed to the
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channel please do do so click that
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little
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little circle to my left i would
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appreciate it comments questions down
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below i'll see you all in the next video
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