MBA 590 Real Estate Analysis

! College of BusinessAlfaisal

UNIVERSITY

Chapter 4 !

Government Controls

Regulate Take Tax

Three Powers

Regulate

enjoying benefits and imposing costs on

someone else

Externalities

Inspect for structural soundness and safety

need land to build roads

police power of government

Land Use Regulation

Building Codes Zoning Regulations

Land Use Regulation

Take

government’s right to take property for

public use in exchange for just compensation

Eminent Domain

when government acts to take

property

Condemnation

Saudi Basic Law Article 18 !

The State shall guarantee private ownership and its sanctity. No-

one shall be deprived of his private property, unless in service of the public interest. In this case, a fair compensation shall be given

to him. !

Tax

tax applied to the owner of real estate typically based on

value

Property Tax

estimates value of property

Tax Assessor

regulate take tax

Summary