FINC 371 Public Restrictions (Due 9/16)

Public Restrictions are the government restrictions for ownership of real estate. These restrictions come in four categories: taxation, escheat, eminent domain, and police power. The government has the right to issue property tax on one's real estate. This property tax is usually based on the market value of the real estate. The government also has the right to escheat, which means that the government can claim ownership to real estate in which the owner dies and he/she does not have an heir or a will that dictates who the real estate should go to. The power of eminent domain is used by the government to acquire property from individuals or corporations for public use. The owner of the land must be justly compensated. An example of this would be the government acquiring property to build a highway. Police power gives the government the right to monitor and police private property to protect the public. Examples of this is requiring certain environmental standards on power plants.

http://www.cnn.com/video/#/video/bestoftv/2009/11/20/roberts.eminent.domain.cnn
This article contends with the government power of eminent domain. The plaintiff is the last resident living in his condo that is in consideration of being acquired by the government to open a new arena for the New Jersey Nets. He complains that the arena is not a public use project, and is hoping the courts overrule the decision to give the property to the government. The government counters his complaints by saying that the arena will create 10,000 new jobs.

http://www.nytimes.com/2007/07/29/nyregion/nyregionspecial2/29RDOMAIN.html?ref=eminentdomain
Homeowners in in Long Branch, New Jersey have been in a 12 year battle for their homes. The city of Long Branch, New Jersey is attempting to use eminent domain to acquire their homes to give way to a private developer. The home owners are fighting this because they believe the city is doing this to increase tax revenue. The home owners have a fighting chance as it seems that the government is abusing their power of eminent domain, which is supposed to be used only for public use projects.