What Is Police Power In Real Estate?
In real estate, police power enables government to enact regulations, requirements and procedures to ensure all aspects involving real estate function in the best interest of the community. Police Power in real estate also gives the government the authority to enforce any enacted legislation or requirements.
Examples of Police Power in Real Estate
One example of police power in real estate is zoning. Different land uses may come into conflict with each other. A factory may not be the best place to live next to. Pollution, noise and different types of traffic may detract from an environment conducive to a safe and healthy place to live. Police power gives the government the authority to enact zoning restrictions to separate different land uses for the well being of the community in order to establish safe and healthy places to reside.
A second example of police power is the ability of the government to require real estate licenses for those who wish to engage in the business of real estate brokerage. Real estate brokerage requires a level of trust and competency to execute. There are many consequences and potential pitfalls to a real estate transaction that can have disastrous results for the parties involved. Police power enables government to establish minimum levels of education, skill and responsibility to protect the well being of the public while establishing trust in the real estate brokerage industry.