Public Restrictions on Ownership (9/13/12)

With real estate being such a large part of our economy, it is no surprise that the government has its hand involved. Just as there are private restrictions, the government created public restrictions that limit the ownership of real estate. The government exerts its power through Eminent Domain, taxation, escheat and police power. The most common and familiar restriction on real estate is the power to tax. This most directly affects owners because it is a large expense every year that puts a dent in peoples' wallets. Every year owners must pay a rather significant tax on their property based on a government assessed value of the real estate. Although it is a dreaded bill to pay, it does provide many benefits that we just take for granted as noted in the following article : Property Tax Benefits. Among many other luxuries, this tax covers school funding, fire and ambulance services, trash pickup and public libraries. In addition to the benefits it provides, it also is a very predictable expense with high transparency of the allocated funds on the local taxing authority's website. Although it is a high expense, it is a fair price to pay to receive the services that we expect from where we reside. This restriction limits where we live and the type of property we own because not paying this tax is all but impossible to escape. It boils down to a simple rule: you don't pay your taxes, you lose your house in a public auction. Another power, which is much more controversial, that is used as our country becomes more developed is Eminent Domain. This allows for the government to acquire private property for public use providing just compensation. This is controversial because it is not clear cut whether the reason for taking the property is really beneficial to the citizens and how can just compensation be measured? This power is a necessary provision that our government must hold to allow our nation to prosper, but you have to feel sorry for those affected. It is a large issue that I believe needs to be strictly monitored with due process in every step of proceeding forward with its use. We need the government to regulate our real estate dealings because without the power of regulation, health, safety, morals and general welfare will be at great jeopardy.