590 Chapter 4

1. MBA 590
Real Estate Analysis
! College
of Business Alfaisal
UNIVERSITY

2. Chapter 4
!
Government
Controls

3. Three Powers
Regulate
Take
Tax

4. Regulate

5. Externalities
enjoying benefits and
imposing costs on
someone else

8. Inspect for
structural
soundness
and safety

9. need land to build roads

10. Land Use Regulation
police power of
government

11. Land Use Regulation
Building Codes
Zoning Regulations

12. Take

13. Eminent Domain
government’s right to
take property for
public use in exchange
for just compensation

14. Condemnation
when government
acts to take
property

15. 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.
!

16. Tax

17. Property Tax
tax applied to the
owner of real estate
typically based on
value

18. Tax Assessor
estimates value of
property

19. Summary
regulate
take
tax