Annexation
Definition of "Annexation"
There are two definitions of annexation in real estate. The first definition of annexation in real estate deals with the expansion of cities and the accompanying zoning laws. When a city expands its jurisdiction, property taxes and local laws can change and affect landowners differently. The other definition of annexation is in regards to personal property that is separate from the property to which it is attached or on which it is located. Let’s look at a couple examples that illustrate both of these concepts.
Examples of Annexation in Real Estate
First, let’s look at an example of annexation in sense pertaining to local government. For our example, we’ll use a middle aged man named Phil. Phil lives just outside the city limits of the small Georgia town in which he owns and runs his own bakery. One day, Phil receives an official notice from his local city government: the city is expanding its jurisdiction, and his home now falls inside the city limits. As a result of this, the letter informs him that his property taxes will increase, and real estate values will be increasing drastically. This example illustrates the first type of annexation in real estate.
Now, we’ll look at an example of the second type of annexation. When a piece of property is to be sold, certain assets that are currently situated on the property or attached to it can be specified in the bill of sale that this property is not part of the property being sold. For example, in the sale of a ten acre plot of land it might be specified that the portable shed currently on the property is not part of the property being sold. After the seller and buyer have closed on the deal, the seller is within his rights to come and annex the portable shed and any other property that was specified as not being part of the property being sold.
Popular Real Estate Terms
Also called all inclusive trust deed (AITD). A mortgage (trust deed) that encompasses existing mortgages and is subordinate to them. The existing mortgages stay on the property and the new ...
Market Analysis in the Real Estate Market is basically research done concerning specific properties in relation to the overall current climate of the real estate industry. A good ...
Fee payable because of late payment. For example, a mortgagor is assessed a $30 late charge by the bank for not paying the mortgage payment when due. ...
Contractual provision requiring apportionment. ...
Rental agreement directly between the landlord and tenant. If the tenant then rents it out to another, it is referred to as a sublease. The relationship takes the following form: ...
One who donated or gives a gift or bequest. ...
Amount the taxpayer gets back when he or she files the tax return at the end of the reporting year because taxes were overpaid for that year. The tax overpayment equals the tax payments ...
In real estate, Attractive Nuisance is how insurance companies classify something that is inherently dangerous and particularly enticing to children. A hazard located within a property that ...
That portion of a loan collaterized by a leased property extending beyond the expiration date of the lease. For example, a lending institution collaterizes a 20-year loan on a commercial ...
Comments for Annexation
Trying to understand the definition of annexation
Feb 18, 2019 19:05:15Annexation in real estate is not very complicated. It usually has to do with the land. When a small piece of land is connected or incorporated into a larger piece of land. Annexation is often done by expanding municipalities in Florida, Texas, California and New York. When this happens, residents usually have to pay a higher property tax.
You may also encounter annexation as in "constructive annexation" which means that a personal property which cannot be removed or is attached to a wall - for example, a library - is treated as a fixture.
Feb 24, 2019 08:32:28Have a question or comment?
We're here to help.