Blogs By Mark J. Baird

You buy a bundle of rights when you buy real estate. The acronym for memorization is SLUDGE. You may have some or all of these rights. See your rights following:

Sell-You have the right to sell it

Lease- You have the right to lease it

Use- You have the right to use it

Dispose- You have the right to dispose of it; you could tear the improvements down, sell the timber, or sell the rock and gravel.

Give Away- You have the right to give it away

Encumber- you can encumber your property with a loan, or an easement, or a covenant, etc.

Again you "may" only have some of these rights; A buyer of a commercial property may not have the right to use the property because of a long term lease held by a lessee. You may not be able to encumber the property with a loan possibly due to environmental regulations or other reasons.

When you have the entire bundle of rights it is called a Fee Simple Interest.  If it is leased long term you have a Leased Fee Interest.  If you are a long term tenant you have a Leasehold Estate Interest.  If you have only the right to live there until you die, that is a Life Estate Interest.  If you have the right to a property after someone dies that would be a Remainder Interest.

So you may be buying thinking you are buying just a house but in actuality you are buying a bundle of rights. If you have the entire bundle of rights...Fee Simple... that is still subject to other issues out there in the world. The acronym I use for these limitations on your rights is PETE.

Police Power- Zoning, ordinances, overlay restrictions, etc.

Eminent Domain- The government may establish a right to take your property away from you for such things that will help the overall public good. Like building a highway, power line, sewer easement, or even more controversial for economic development.

Taxation-Your property is subject to taxation by the government.

Escheat-If you die and there is no will or proper probate, the property will revert to state ownership.

Questions: Call Mark Baird, Appraiser 541-770-2769

Question and verify all verbal claims important to you.

If the advertisement suggests "Buyer to do due diligence" this typically means the individual felt it was important enough to warn you about something he/she has not fully investigated or is there are certainly some unknown issues that could be very important.

Does the property have legal status? What is the zoning? What can I do in that zoning? What can my neighbors do in that zoning? Are the improvements legal and have all required permits for the construction, addition or remodel been approved? If there is a well...what is the flow currently and historically? Is the water potable? When was it last tested? If there is a septic? Is it legal for the improvement? In Jackson county, septics are rated by number of bedrooms (was an addition of bedrooms made without updating the septic?)

How is the access? Is it a public access or a private access? Who maintains the access way? Who owns the access? Who has liability of the access way? Do you have or need an easement? Does it specify that it is for residential use or maybe only for timber use? Does someone else have the right to use your property or access via an easement or other agreement?

Hey this is just the tip of the iceberg for understanding real property issues that can come up! If you think things like these are only small problems, talk to someone who has found they cannot get financing for a home loan, or has a buyer who cannot get financing due to these issues that come up?

Eyes wide open!

I recently noticed that timber prices have headed up based on the amounts paid by the mills. In the last 3 months Doug Fir has moved from about $775/MBF to $875/MBF. That is a respectful 12.9% increase. Other varieties appear to be increasing as well. Could that enhance the property value of the property you have an interest in. Call me if you need a timberland appraisal.