Chapter 1 Elements of Property Flashcards

Land and Site Definitions

• Land: The solid surface of the Earth, distinct from water, and a fundamental agent of production in economics. It is natural and tangible, encompassing both natural features and human-made attachments.
• Site: Improved land or lot that is ready for use for a specific purpose.

Land Characteristics and Components

• Physical Attributes: Land is defined by the earth’s surface and extends theoretically to the center and above into the atmosphere.
• Natural Resources: Includes mineral deposits, wildlife, timber, water, and soil among other elements, such as flowers and trees growing on it.

Valuation and Land Rights

• International Valuation Standards Council (IVSC): Provides global standards for land valuation, including definitions of land as both vacant and improved.
• Land Rights: Ownership of land includes a bundle of rights that can be separated and sold. Rights include mineral, water, development, and conservation rights.

Site Improvements

• Key Improvements: Necessary enhancements that increase land value include roads, sewer systems, grading, drainage, site plans, and necessary zoning changes or permits.
• Site vs. Land Value: Sites are usually more valuable due to these improvements that prepare land for specific uses.

Highest and Best Use

• Definition: The use of a property that results in the highest value, subject to legal, physical, and financial considerations.
• Considerations: Must be the most probable use that meets legal, physical, financial feasibility, and maximum productivity criteria.

Legal Descriptions and Surveying

• Plats and Legal Descriptions: Legal descriptions include maps (plats) that define property boundaries and facilitate accurate identification and conveyance of land.
• Types of Legal Descriptions: Metes and bounds, Government Survey, and Lot and Block systems.
• Government Survey System: Established in 1785, divides land into townships and sections, primarily in the Midwest and West (excluding Texas).

Measurements and Calculation

• Metes and Bounds: An early legal property description method using bearings and distances.
• Gunter's Chain: Historical measurement system for surveying, where 1 mile = 8 furlongs; 1 chain = 66 feet; also involved calculations in rods and links.
• Sections and Land Division: Each section measures 1 square mile (640 acres) and can be subdivided into smaller parcels (quarter sections of 160 acres).
• Lot and Block System: A method utilizing plats, common from the mid-1900s for tracking new properties and tax assessments.

Area and Size Calculations

• Importance of Area: It's crucial to determine property size for valuation; for example, knowing acreage helps establish market value.
• Area Calculation Method: Divide irregular shapes into standard forms (rectangles/triangles) for easier area computation, applying formulas like A = ½ BH for triangles.

Unusual Measurements in Surveys

• Various historical or unusual land measurements exist, such as:
  • 1 League = 3 Miles
  • 1 Labor = 177.14 Acres
  • 1 Smoke = distance traveled while smoking a cigarette