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Slide 1: Chapter One: International Real Estate 1.1 Introduction The term international real estate is a relatively new phenomenon, which implies a post-Globalization real estate, or property sector. The term encompasses real property development and sales/leasing transactions between nations; and the enormous amount of legal, design, urban planning, engineering, financing, and construction work that follows from developmental transactions. International real estate is, by definition, influenced by fluctuating market value in various sectors between counties, as can be evidenced by the 2008 global credit crisis. International real estate is best subdivided into two categories: commercial and residential. International commercial real estate has been a natural consequence of business' evolution toward multi-national business operations. Often, International commercial real estate transactions require the formation of corporations used to purchase or lease real estate, when freehold ownership is not permitted. International real estate, as it involves the purchase and sale of international residential real estate, is often limited to the "luxury" sector of the real estate market, usually defined as the top 10% of sales prices in a given market. This is because international home purchases are usually buyers' second homes, although market share exists in "affordable luxury" holiday homes. Within the international residential real estate sector, great emphasis is placed on property marketing. International real estate may have been aided by modern media such as internet or international media, as it catalysed globalization and aided in the communications necessary for transactions to take place. It is not true that international real estate
Slide 2: did not exist before the World Wide Web, but it is certainly true that it was not as effective and accessible as it is nowadays. International real estate is one of the most dynamic branches of real estate encompassing experts from many different fields, including law, civil engineering and construction planning. Its main aims include infrastructural development and augmentation of the tourist industry. The recent construction of international real estate directories and forums in which the interested parties can communicate and exchange information has been a major breakthrough resulting in major development in the field. 1.2 Avimor Avimor is an 840-acre (3.4 km2) master-planned residential community located in the Foothills west of Boise, Idaho and five miles (8 km) directly north of Eagle, Idaho along Hwy. 55. The project is being developed by SunCor Development Company, a wholly-owned subsidiary of Pinnacle West Capital Corporation, a publicly-traded company (NYSE: PNW) which is also the parent company of Arizona Public Service, the state's largest utility company. Construction began in 2006 and is ongoing. Village One, the first portion of the 23,000-acre (93 km2) Spring Valley Ranch property to be developed, includes 650 homes and a planned village center of shops, offices, dining options, a daycare and recreational amenities. A second village is still in the planning stages. Nearly 20,000 acres (81 km2) of the surrounding land is designated as open space.
Slide 3: 1.3 History Spring Valley Ranch was once a 38,000-acre (150 km2) sheep ranch, then transitioned to cattle and horses. SunCor chose Avimor as the community name based on the heritage of the McLeod family, Spring Valley Ranch owners since the early 1900s. The family is originally from the Highlands area of Scotland and Aviemore is an active-lifestyle resort town in the region. The spelling was changed, hence the current name. 1.4 Conservation 1.4.1 Water Conservation Water consumption in this high desert region has been an important issue for the development team and the surrounding communities. Design, management and educational initiatives are in place to meet the goal of reducing typical residential indoor and outdoor water consumption by 30%. Minimizing use begins by establishing water rates that encourage conservation, metering all treated-water usage and providing educational materials for residents. All homes are built with low-flow plumbing fixtures, recirculation pumps for hot water delivery and low-water-use appliances. Treated effluent from the on-site state-of-the-art wastewater treatment plant reduces the use of potable water for land irrigation. Landscaping is done with xeric plants through covenants, deed restrictions and permitted plant lists that also limit the use of turf in private yard landscaping. The community uses drip irrigation for all shrubs and trees and a centralized, time-controlled irrigation system linked to a weather station for watering common areas.
Slide 4: 1.4.2 Energy Conservation By gaining Energy Star certification for all homes, this signifies up to 30% greater efficiency than homes built to code. Educational materials have been developed to help Avimor residents make further energy-conscious choices. Additionally, community design and amenities are in place to help reduce the need for car travel. Where possible, buildings are oriented along an east-west axis to maximize passive solar heating and are sited to allow for low angle winter sun. The use of overhangs, porches and other appropriate features shade south-facing walls in summer. Landscaping tactics shade buildings in the summer and allow solar heating in winter. 1.4.3 Plant and Wildlife Conservation Years of ranching, along with a keen interest in preserving the natural state foothills lands, has set into motion a comprehensive land conservation plan. Nearly 60% of the 840 acres (3.4 km2) in Village One is retained as preserved open space. Large tracts of adjacent land will be preserved and restored to pre-ranchland state for the benefit of residents, wildlife and the general public. A neighborhood conservation director has taken a "No Net Loss" approach to wildlife mitigation.. Rather than work from a wildlife-down approach - which usually accounts for a smaller set of species such as big game - this strategy begins with the soils and vegetation. By restoring these base natural components first, more plant, animal and insect species will benefit in a given area. This plan was developed with assistance from the Idaho Department of Fish and Game, Ada County Development Services, Bureau of Land Management, Ada County Parks and Recreation, and private interest groups.
Slide 5: Plant and wildlife conservation projects includes the establishment of a conservation easement, enhancing wildlife habitats, properly managing foothills recreation access, planting native plant species, controlling invasive and noxious weeds, and conducting regular big game surveys. 1.5 Better Homes History Better Homes was founded in 1986 in Dubai, United Arab Emirates by Linda Mahoney as a residential leasing company. It is one of the oldest real estate companies in the Middle East. Since 1986, the company has grown from a one woman enterprise and launched over 10 divisions and 30 property boutiques and offices with a 700+ workforce all over the Middle East, Europe and Asia. Better Homes is also a founding member of the Dubai Property Group. 1.6 Services The company uses a proprietary IT system to give clients features, such as the most up-to-the-minute properties available and interactive online maps. Some of the services the company offers include: • • • • • Residential Sales and Leasing Commercial Sales and Leasing Property Management Short-term Rentals Project Sales and Marketing
Slide 6: • • International Sales Concierge service The Commercial division was launched in 1996. Launched in 2007, Better Plus, one of the company’s newest divisions, is a concierge service that connects Better Homes’ clients with services such as insurance, mortgages, currency exchange, and home furnishing. Aside from property, Better Homes also entered the hospitality sector with the Short-term Rentals division and offers a range of self-catering apartments and serviced hotel apartments in Dubai. The company also launched its very own Emerald Hotel Apartments in Bur Dubai. Billy Rautenbach, Better Homes’ Chief Operational Officer, was named amongst the 5 most high profile women in Dubai’s real estate market by Arabian Property magazine. 1.7 Creative Branding Better Homes’ marketing has always been in the limelight for its fun and funky style. The company re-branded in 2006 unveiling a new corporate identity. It recently launched its new website (www.bhomes.com) to offer users a comprehensive online property search with interactive maps, 360° property tours, floor plans, colour printable brochures, and image galleries. Since its launch, the site regularly receives over five thousand unique visitors per day. 1.8 Publications
Slide 7: Better Homes has dedicated publications, Better Homes Magazine and Commercial Review, which provide readers with guides on living in Dubai and choosing the most suitable property. 1.9 Going Global Better Homes International offers properties in both emerging and mature markets throughout the world. Catering to property markets as diverse as Turkey, Fiji, Cyprus, Spain, India, Greece, Morocco, and the Caribbean. 1.10 Blockbusting Blockbusting was a business practice of U.S. real estate agents and building developers meant to encourage white property owners to sell their houses at a loss, by fraudulently implying that racial, ethnic, or religious minorities — blacks, Hispanics, Jews et al. — were moving into their previously racially segregated neighborhood, and so depress real estate property values.[1] Blockbusting became possible after the legislative dismantling of legally-protected racially-segregated real estate practices after World War II, but by the 1980s it disappeared as a business practice after changes in law and the real estate market. 1.11 Background Beginning around 1900, with the Great Migration (1915–30) of black Americans from the rural Southern United States to work in the cities and towns of the northern U.S., many white people feared that black people were a social and economic threat, and countered their presence with local zoning laws that requiring them to live and reside in geographically defined areas of the town or city, preventing them from moving to areas inhabited by white people.
Slide 8: In 1917, in the case of Buchanan v. Warley (1917), the Supreme Court of the United States voided the racial residency statutes forbidding blacks from living in white neighborhoods, as violating the Equal Protection Clause of the Fourteenth Amendment to the United States Constitution.[3] In turn, whites used racially restrictive covenants in deeds, and real estate businesses informally applied them to prevent the selling of houses to black Americans in white neighborhoods. To thwart the Supreme Court’s Buchanan v. Warley prohibition of such legal business racism, state courts interpreted the covenants as a contract between private persons, outside the scope of the Fourteenth Amendment; however, in the Shelley v. Kraemer (1948) case, the Supreme Court ruled that the Amendment’s Equal Protection Clause outlawed the states’ legal enforcement of racially restrictive covenants in state courts.[4] In the event, decades of racist laws requiring black Americans to live in over-crowded and over-priced ghettos created economic pressures to avail black people of housing in racially-segregated neighborhoods. Freed by the Supreme Court from the legal restrictions against selling white housing to blacks, real estate companies sold houses to those who could buy — if they could find a willing white seller. Generally, “blockbusting” denotes the real estate and building development business practices yielding double profits from U.S. anti-black racism; aggravating, by subterfuge, the white home owners’ fears of mixed-race communities to encourage them to quickly sell their houses at a loss, at belowmarket prices, and then selling that property to black Americans at higher-thanmarket prices. Given the federally-legislated racial discrimination in mortgagelending, black people usually did not qualify for mortgages from banks and savings and loan associations, instead, they recurred to land installment contracts at usurious interest rates to buy a house — a racist economic strategy eventually
Slide 9: leading to foreclosure.[2] With blockbusting, real estate companies legally profited from the arbitrage (the difference between the discounted price paid to frightened white sellers and the artificially high price paid by black buyers), and from the commissions resulting from increased real estate sales, and from their usurious financing of said house sales to black Americans.[2] The documentary film Revolution '67 (2007) examines the blockbusting practiced in Newark, New Jersey in the 1960s. 1.12 Methods of Blockbusting The term “blockbusting” might have originated in Chicago, Illinois, where, in order to accelerate the emigration of economically successful racial, ethnic, and religious minority residents to better neighborhoods beyond the ghettos, real estate companies and building developers used agents provocateurs — non-white people hired to deceive the white residents of a legally-restricted neighborhood into believing that black people were moving into the neighborhood, thereby encouraging them to quickly sell (at a loss) and emigrate to racially-restricted suburbs. The tactics included hiring black women to be seen pushing baby carriages in white neighborhoods, so encouraging white fear of devalued property; selling a house to a black family in a white neighborhood to provoke white flight, before the community’s properties became worthless; selling white neighborhood houses to black families, and afterwards placing real estate agent business cards in the neighbors’ mailboxes; and saturating the neighborhood area with fliers offering quick-cash for houses. Like-wise, building developers bought houses and dwelling buildings, and left them unoccupied to make the neighborhood appear abandoned — like a ghetto or a slum — psychologic coercion that usually forced the
Slide 10: remaining white folk to sell at a loss. Blockbusting was a very common and very profitable form of racist exploitation, for example, by 1962, when blockbusting had been practiced for some fifteen years, the city of Chicago had more than 100 real estate companies that had been, on average, “changing” between two to three blocks a week for years. 1.13 Reactions to Blockbusting In 1962, “blockbusting” real estate profiteering was nationally exposed by the The Saturday Evening Post with the article "Confessions of a Block-Buster", wherein the author detailed the practices, emphasizing the surplus profit gained from frightening white people to sell at a loss, in order to quickly resettle in raciallysegregated "better neighborhoods".[2] In response to political pressure from the cheated sellers and buyers, states and cities legally restricted door-to-door real estate solicitation, the posting of "FOR SALE" signs, and authorized government licensing agencies to investigate the blockbusting complaints of buyers and sellers, and to revoke the real estate sales licenses of blockbusters. [2] Like-wise, other states' legislation allowed lawsuits against real estate companies and brokers who cheated buyers and sellers with fraudulent representations of declining property values, changing racial and ethnic neighborhood populations, local crime, and the "worsening" of schools, because of race mixing. The Fair Housing Act of 1968 established federal causes of action against blockbusting, including illegal real estate broker claims that blacks, Jews, Hispanics, et al. had or were going to move into a neighborhood, and so devalue the properties. In the case of Jones v. Alfred H. Mayer Co. (1968), the U.S. Supreme Court ruled that the Thirteenth Amendment authorized the federal government's prohibiting racial discrimination in private housing markets,[5] thus
Slide 11: allowing black American legal claims to rescind the usurious land contracts (featuring over-priced houses and higher-than-market mortgage interest rates), as a racist real estate business practice illegal under the Civil Rights Act of 1866, which greatly reduced the profitability of blockbusting. Nevertheless, said regulatory and statutory remedies against blockbusting were challenged in court; thus, towns cannot prohibit an owner's placing a "FOR SALE" sign before his house, in order to reduce blockbusting. In the case of Linmark Associates, Inc. v. Willingboro (1977), the Supreme Court ruled that such prohibitions infringe freedom of expression. Moreover, by the 1980s, as evidence of blockbusting practices disappeared, states and cities began rescinding statutes restricting blockbusting. 1.14 U.S. Cultural References The serio-comic television series All in the Family (1971–79), featured "The Blockbuster", a 1971 episode about said practice, illustrating some real estate blockbusting techniques. In the Knight Rider (1982–86) adventure television series, episode 11 of the fourth season features the eponymous hero, Michael Knight, trying to stop a blockbusting operation in a Chicago ghetto 1.15 Buyer Listing Service A Buyer Listing Service ("BLS") is a system designed to gather relevant information, via data entries by a prospective home buyer, her real estate 'Buyer Agent', or both, concerning the Buyer's financial qualifications regarding a home purchase and the Buyer's needs and wants for the sought for home (number of bedrooms, location, square footage, etc.). Working in much the same way as the well-known Multiple Listing Service ("MLS") operates to market homes-for-sale, a
Slide 12: BLS system provides corresponding data from the Buyer's perspective. BLS systems may be integrated with MLS systems operated by the local Association of Realtors, 'free-standing'and available directly to Buyer and Seller consumers, or operated through in-house systems of privately owned real estate brokerages. National BLS is the first national Buyer Listing Service of pre-approved residential real estate buyers. The service allows buyers to anonymously broadcast their home buying requirements to the web, stating specific or general location, property type, property use, number of bedrooms and bathrooms, their mortgage details (purchase terms, down payment, contingencies, etc.) and a host of other important property attributes (deck/patio, fireplace, central air, etc.) Buyers on NationalBLS are searchable by real estate agents and home sellers, who can then make reverse offers to the buyers. The system gives real estate agents a tool for qualifying their buyer leads and protecting their buying clients. Real estate agents also use the buyer listing service on behalf of eager home sellers who are keen to start negotiating. Further, mortgage brokers and loan officers use the service to manage their buyers and promote their buyers' best interests. NationalBLS can be found at www.nationalbls.com 1.16 CRTS Certified Relocation and Transition Specialists CRTS Certified Relocation and Transition Specialists are third party certified providers who assist older adults and their families through often stressful transitions, such as moving to a senior living community or modifying a home to age in place. The CRTS designation is awarded to Senior Transition Specialists who meet experience, eligibility and exam requirements.
Slide 13: Oversight for the CRTS designation is the responsibility of the Senior Transition Society, a North American professional society. All CRTS graduates become part of the CRTS Professional Registry which is available for families through national websites. CRTS professionals include Realtors, local and long distance movers, appraisers, estate sale specialists, home care professionals, professional organizers and more. CRTS professionals focus on alleviating client and family stress associated with relocation. CRTS professionals are a qualified resource for families and are trained to understand how home transitions are often complicated by factors such as health, personal asset management, dementia and complex family dynamics. CRTS Certified professionals are required to pass criminal background checks and meet ongoing insurance and continuing education requirements. 1.17 Coldwell Banker Coldwell Banker is a large real estate franchise owned by Realogy, which also owns Century 21 Real Estate and ERA Real Estate. The company was founded in 1906 in San Francisco. Coldwell Banker has an international presence, with offices on six continents, 46 countries and territories. There are more than 600 Coldwell Banker offices outside of the United States. 1.18 Company History Early years
Slide 14: The company was launched in 1906. After the devastating 1906 San Francisco earthquake and fires, real estate agent Colbert Coldwell formed a new real estate company. Coldwell disapproved of the then-common practice of real estate agents acquiring properties for themselves, often from uninformed sellers at ridiculously low prices, and then reselling them for huge profits. He and two partners formed the company of Tucker, Lynch and Coldwell on August 27, 1906. In 1913, Benjamin Arthur Banker joined the firm as a salesman and became a partner in 1914. He and Coldwell remained active in the company throughout their lives. In the early years of growth, Coldwell Banker offices were devoted primarily to commercial real estate brokerage firms. In 1925 the first residential real estate office opened in San Francisco, and a full fledged residential real estate department was formed by 1937. 1.19 Expansion The company's geographic expansion began in the 1920s with the opening of offices in Southern California. The company opened its first office outside California (in Phoenix, AZ) in 1952. This was followed by an office in Seattle in 1969. In the 1970s, Coldwell Banker acquired residential real estate firms in Atlanta, Chicago, and Washington, DC, expanding its geographic footprint. [2]
Slide 15: By 1980, Coldwell Banker had also acquired a national referral service (now Coldwell Banker Referral Network), and Previews Inc., an international luxury real estate marketing organization (which has evolved into the present-day Coldwell Banker Previews International). In 1981, Coldwell Banker was acquired by Sears, Roebuck and Co., joining Dean Witter Financial Services Group and Allstate Insurance group as a member of the Sears Financial Network. Another landmark in 1981 was the launch of Coldwell Banker Residential Affiliates, Inc. for the franchising of residential brokerage companies. Further acquisition of companies in major metropolitan areas across the United States occurred in the 1980s.. 1990s • By 1990, Coldwell Banker had locations in all fifty states, and had begun international expansion with offices in Canada and Puerto Rico. The company's focus on residential real estate was strengthened with the sale of Coldwell Banker Commercial Group (now known as CB Commercial). Coldwell Banker was purchased from Sears by the Fremont Group in 1993. Another milestone in 1993 was the substantial increase of Coldwell Banker presence in Canada. Coldwell Banker Affiliates of Canada, a joint venture of Coldwell Banker and Canada Trust, is one of Canada's largest real estate operations with more than 200 offices and thousands of sales representatives coast to coast. Coldwell Banker in 1995 became one of the first national and first-service real estate brands to have a presence online with the launch of www.coldwellbanker.com. • •
Slide 16: • In May 1996, Coldwell Banker was acquired by HFS Incorporated, then the world's largest franchisor of hotels and residential real estate brokerage offices. 1997 saw parent company HFS merge with CUC International, forming the new Cendant Corporation. • 2000 - Present • In 2005, Coldwell Banker became the first full-service national real estate brand to launch a stand-alone Web site for upscale properties with www.coldwellbankerpreviews.com. Later that year, it was announced that Cendant would spin off its four divisions – real estate, hotel, car rental and hospitality services. Coldwell Banker would now be part of a stand-alone real estate company named Realogy in late 2006. Realogy’s brands – Coldwell Banker, Coldwell Banker Commercial, Century 21, ERA and Sothebys International Realty (Better Homes and Gardens Real Estate was added in 2007) - combine to participate in one of every four residential real estate transactions in the United States. At the start of 2006, Coldwell Banker began celebrating its 100th anniversary. Jim Gillespie, president and chief executive officer of Coldwell Banker Real Estate Corporation, led a Coldwell Banker contingent in ringing the closing bell at the New York Stock Exchange on August 21, 2006 to commemorate the brand’s 100th anniversary. • • 1.20 Curb Appeal
Slide 17: Curb appeal is attractiveness of the exterior of a residential or commercial property. The term was extensively used in the United States during the housing boom and continues to be used as an indicator of the initial appeal of a property to prospective buyers. Methods for Increasing Curb Appeal Curb appeal can be accomplished by any number of methods including the installation of exterior decorations, re-painting, extensive attention to the landscaping. Several television programs (such as Designed to Sell, House Doctor, Flip This House) have been created to explore ways for homeowners and building contractors to increase the curb appeal of their properties for a more profitable sale. 1.21 First Time Home Buyer Grant A first time home buyer grant is a grant specifically for/targeted at those buying their first home perhaps a starter home. Like other grants, the first time buyer does not hold an obligation to repay the grant. In this respect, it differs from a loan and does not incur any debt or interest. Grants can be given out by foundations and governments. Grants to individuals can be either scholarships or donations. First time home buyer grants are typically awarded based on a few criteria, primarily financial need and income qualifications. Many states have initiated grant programs to help lower income residents with the purchase of their first home. The United States Department of Housing and Urban Development (HUD) also provides grants to first time home buyers.
Slide 18: Funding for various state first time home buyer grants is nearly always available. In fiscal year 2006, only two states exhausted their budgets for first time home buyer grants. A similar program was introduced in Australia from the 1 July 2000, where first time home buyers can receive a $7,000 once off payment to offset the cost of GST. While the program is offered nationwide, the scheme is funded by the states and territories and subject to respective legislation. 1.22 Problems with First Time Home Buyer grants Because a first time home buyer grant usually pushes up the amount that such a buyer can borrow from a financial institution by more than the value of the grant, in competitive housing markets where a majority of competing buyers will also have access to the grant, the end result is that lower-end houses increase in price also by more than the value of the grant, and first home buyers tend to accumulate more debt than if the grant had not been available. 1.23 Fixer-Upper A fixer-upper is a real-estate property that will require maintenance work (redecoration, reconstruction or redesign) though it usually can be lived in as it is. They are popular with buyers who wish to raise the property's potential value to get a return on investment, a practice known as flipping, or as a starter home for buyers on a budget. Home-improvement television shows touting do-it-yourself renovation techniques have made fixer-uppers more popular, but during a realestate downturn, with newer homes available at depressed prices, there is often reduced interest. Inexperienced buyers frequently underestimate the amount and
Slide 19: cost of repairs necessary to make a home livable or saleable.[1] Structural and service issues such as a home's foundation or plumbing, which may not be visible at first, can require expensive, professional contracting work.[1] According to Jack C. Richards in his book Interchange (Third Edition) Volume Three, the expression 'Fixer-Upper' describes a place for sale at a lower price because it needs a lot of repairs. 1.24 Film and Television Many comedy films have used fixer-upper renovations as a central part of the plot, among them: • • • • Are We Done Yet? (2007) The Money Pit (1986) Mr. Blandings Builds His Dream House (1948) George Washington Slept Here (1942) Flipping of rundown houses has also been the subject of various reality television shows, including: • • • Flip That House Flip This House The Real Estate Pros 1.25 Long & Foster Long & Foster (founded 1968) is the largest privately-owned real estate company in the United States with over 15,000 agents in nearly 230 sales offices in the MidAtlantic region.
Slide 20: P. Wesley Foster, the chief executive officer and one of the founders, began his real estate career in 1963 as a sales manager at Michew Corporation, a home building company. In 1966, he moved to Nelson Realty as vice-president of sales. In 1968, he founded Long & Foster Companies with Henry Long. Long & Foster began with Foster handling the residential real estate arm of the business and Long handling the commercial side. Foster became the sole owner in July 1979, eleven years after establishing Long & Foster. Long & Foster has offices and associates in Virginia, Maryland, Washington, D.C., Pennsylvania, New Jersey, West Virginia, Delaware, and North Carolina. It provides services including the sale and purchase of homes, land, and commercial properties; mortgage, title, and insurance assistance; insurance offerings; and relocation and settlement services. 1.26 Mixed-Use Development Mixed-use development is the practice of allowing more than one type of use in a building or set of buildings. In planning zone terms, this can mean some combination of residential, commercial, industrial, office, institutional, or other land uses. 1.27 History Mixed-use development in New York City. Note the residential space above the retail space in the same building. Throughout most of human history, the majority of human settlements developed as mixed-use environments. Walking was the primary way that people and goods
Slide 21: were moved about, sometimes assisted by animals such as horses or cattle. Most people dwelt in buildings that were places of work as well as domestic life, and made things or sold things from their own homes. Most buildings were not divided into discrete functions on a room by room basis, and most neighborhoods contained a diversity of uses, even if some districts developed a predominance of certain uses, such as metalworkers, or textiles or footwear due to the socioeconomic benefits of propinquity. People lived at very high densities because the amount of space required for daily living and movement between different activities was determined by walkability and the scale of the human body. This was particularly true in cities, and the ground floor of buildings was often devoted to some sort of commercial or productive use, with living space upstairs. This historical mixed-used pattern of development declined during industrialisation in favor of large-scale separation of manufacturing and residences in singlefunction buildings. This period saw massive migrations of people from rural areas to cities drawn by work in factories and the associated businesses and bureaucracies that grew up around them. These influxes of new workers needed to be accommodated and many new urban districts arose at this time with domestic housing being their primary function. Thus began a separating out of land uses that previously had occurred in the same spaces. Furthermore, many factories produced substantial pollution of various kinds. Distance was required to minimize adverse impacts from noise, dirt, noxious fumes and dangerous substances. Even so, at this time, most industrialized cities were of a size that allowed people to walk between the different areas of the city. These factors were important in the push for Euclidian zoning premised on the compartmentalization of land uses into like functions and their spatial separation. In Europe, advocates of the Garden City Movement were attempting to think
Slide 22: through these issues and propose improved ways to plan cities based on zoning areas of land so that conflicts between land uses would be minimized. Modernist architects such as Le Corbusier advocated radical rethinking of the way cities were designed based on similar ideas, proposing plans for Paris such as the Plan Voisin, Ville Contemporaine and Ville Radieuse that involved demolishing the entire center of the city and replacing it with towers in a park-like setting, with industry carefully sited away from other uses. In the United States, another impetus for Euclidian zoning was the birth of the skyscraper. Fear of buildings blocking out the sun led many to call for zoning regulations, particularly in New York City. Zoning regulations, first put into place in 1916, not only called for limits on building heights, but eventually called for separations of uses. This was largely meant to keep people from living next to polluted industrial areas. This separation, however, was extended to commercial uses as well, setting the stage for the suburban style of life that is common in America today. This type of zoning was widely adopted by municipal zoning codes. With the advent of mass transit systems, but especially the private automobile and cheap oil, the ability to create dispersed, low-density cities where people could live very long distances from their workplaces, shopping centres and entertainment districts began in earnest. However, it has been the post-second World War dominance of the automobile and the decline in all other modes of urban transportation that has seen the extremes of these trends come to pass. 1.28 Benefits
Slide 23: Throughout the late 20th century, it began to become apparent to many urban planners and other professionals that mixed-use development had many benefits and should be promoted again. As American, British, Canadian and Australian cities deindustrialized, the need to separate residences from hazardous factories became less important. Completely separate zoning created isolated "islands" of each type of development. In most cases, the automobile had become a requirement for transportation between vast fields of residentially zoned housing and the separate commercial and office strips, creating issues of Automobile dependency. In 1961, Jane Jacobs' influential The Death and Life of Great American Cities argued that a mixture of uses is vital and necessary for a healthy urban area. Zoning laws have been revised accordingly and increasingly attempt to address these problems by using mixed-use zoning. A mixed use district will most commonly be the "downtown" of a local community, ideally associated with public transit nodes in accordance with principles of Transit-oriented development (TOD) and New urbanism. Mixed use guidelines often result in residential buildings with streetfront commercial space. Retailers have the assurance that they will always have customers living right above and around them, while residents have the benefit of being able to walk a short distance to get groceries and household items, or see a movie. 1.29 Drawbacks Mixed use development is seen as too risky by many developers and lending institutions because economic success requires that the many different uses all
Slide 24: remain in business. Most development throughout the mid to late 20th century was single-use, so many development and finance professionals see this as the safer and more acceptable means to provide construction and earn a profit. Christopher B. Leinberger notes that there are 19 standard real estate product types that can obtain easy financing through real estate investment trusts. Each type, such as the office park and the strip mall, is designed for low density, single use zoning. Another issue is that short term discounted cash flow has become the standard way to measure the success of income-producing development, resulting in "disposable" suburban designs that make money in the short run but are not as successful in the mid to long term as walkable, mixed use environments. Mixed use commercial space is often seen as being best suited for retail and small office uses. This precludes its widespread adoption as the trend to ever-larger corporate and government employment accelerates. Mixed use residential buildings and neighbourhoods seldom offer single-family homes, thus are best suited to residents who prefer public amenities to private space. The lack of backyards or other private outdoor space for children and pets is anathema to some, particularly in some North American and Australian cultures. Street hierarchy and other traffic calming measures intended to serve such residental users may impede commercial traffic. Construction costs for mixed-use development currently exceed those for similar sized, single-use buildings. Challenges include fire separations, sound attenuation, ventilation, and egress. Leinberger explains, “ Good urban architecture costs upward of 50 percent more than typical suburban buildings. In urban areas, residents and businesses demand a ”
Slide 25: higher quality of building, since you are walking past them, not driving by at 45 miles an hour with the buildings set back 150 feet. Additional costs arise from meeting the design needs: In some designs, the large, high-ceilinged, columnless lower floor for commercial uses may not be entirely compatible with the smaller scale of walled residential space above. Due to usually higher densities in mixed-use developments and due to the commercial and/or office component, parking space requirements are likely to exceed those of residential development. Thus, mixed use projects that are not sited close to public transit are likely to require a large number of parking spaces that may be difficult to finance. (Note that this is equally true for any other higher-density development remote from public transport; however, compared to residential zones this may be a drawback due to higher initial investment required that only amortizes over the medium and long-term.) It should be noted however that in mixed-use developments in some denser areas, owning an automobile might be considered a luxury rather than a necessity, especially if the area is well connected to public transport. Therefore, others argue that mixed-use neighborhoods need less parking space and are more efficient - however only if zoning regulations reflect this condition and allow to provide for less parking (see Donald C. Shoup, The High Cost of Free Parking). A notable example in the United States is Manhattan, though this is an atypical case. Others maintain that modern consumers prefer big box retailers, arguing that most grocery shoppers today would prefer the convenience of weekly shopping, as opposed to picking up each day's food items from a number of local shops. It is however not clear whether this phenomena is the cause of attractive retailers or of zoning regulations that do not permit mixed-use development so that small shops
Slide 26: are remote and, thus, inconvenient (see Jane Jacobs, The Death and Life of Great American Cities). Moreover, it may be argued that people prefer to shop with retailers because, due to single-use zoning, the local availability of goods through convenience commercial is limited.
Slide 27: Chapter Two: New Urbanism 2.1 Introduction New Urbanism is an urban design movement, which promotes walkable neighborhoods that contain a range of housing and job types. It arose in the United States in the early 1980s and continues to reform many aspects of real estate development and urban planning. New Urbanism is strongly influenced by urban design standards prominent before the rise of the automobile and encompasses principles such as traditional neighborhood design (TND) and transit-oriented development (TOD).[1] It is also closely related to Regionalism and Environmentalism. Market Street, Downtown Celebration, Florida The organizing body for New Urbanism is the Congress for the New Urbanism, founded in 1993. Its foundational text is the Charter of the New Urbanism, which says: We advocate the restructuring of public policy and development practices to support the following principles: neighborhoods should be diverse in use and population; communities should be designed for the pedestrian and transit as well as the car; cities and towns should be shaped by physically defined and universally accessible public spaces and community institutions; urban places should be framed by architecture and landscape design that celebrate local history, climate, ecology, and building practice.
Slide 28: New urbanists support regional planning for open space, context-appropriate architecture and planning, and the balanced development of jobs and housing. They believe their strategies can reduce traffic congestion, increase the supply of affordable housing, and rein in urban sprawl. The Charter of the New Urbanism also covers issues such as historic preservation, safe streets, green building, and the redevelopment of brownfield land. 2.2 Background New Urbanism draws from the design of older urban neighborhoods, like this one in Venice, California. Until the mid 20th century, cities were generally organized into and developed around mixed-use walkable neighborhoods. For most of human history this meant a city that was entirely walkable, although with the development of mass transit the reach of the city extended outward along transit lines, allowing for the growth of new pedestrian communities such as streetcar suburbs. But with the advent of cheap automobiles and favorable government policies, attention began to shift away from cities and towards ways of growth more focused on the needs of the car. This new system of development, with its rigorous separation of uses, became known as "conventional suburban development" or pejoratively as urban sprawl, arose after World War II. The majority of U.S. citizens now live in suburban communities built in the last fifty years. Suburban development consumes large areas of countryside, and automobile use per capita has soared. Although New Urbanism as an organized movement would only arise later, a number of activists and thinkers soon began to criticize the modernist planning
Slide 29: techniques being put into practice. Social philosopher and historian Lewis Mumford criticized the "anti-urban" development of post-war America. The Death and Life of Great American Cities, written by Jane Jacobs in the early 1960s, called for planners to reconsider the single-use housing projects, large cardependent thoroughfares, and segregated commercial centers that had become the "norm." Rooted in these early dissenters, New Urbanism emerged in the 1970s and 80s with the urban visions and theoretical models for the reconstruction of the "European" city proposed by architect Leon Krier, and the "pattern language" theories of Christopher Alexander. In 1991, the Local Government Commission, a private nonprofit group in Sacramento, California, invited architects Peter Calthorpe, Michael Corbett, Andrés Duany, Elizabeth Moule, Elizabeth Plater-Zyberk, Stefanos Polyzoides, and Daniel Solomon to develop a set of community principles for land use planning. Named the Ahwahnee Principles (after Yosemite National Park's Ahwahnee Hotel), the commission presented the principles to about one hundred government officials in the fall of 1991, at its first Yosemite Conference for Local Elected Officials. Calthorpe, Duany, Moule, Plater-Zyberk, Polyzoides, and Solomon founded the Chicago-based Congress for the New Urbanism in 1993. The CNU has grown to more than 3,000 members, and is the leading international organization promoting new urbanist design principles. It holds annual Congresses in various U.S. cities. New Urbanism is a broad movement that spans a number of different disciplines and geographic scales. And while the conventional approach to growth remains
Slide 30: dominant, New Urbanist principles have become increasingly influential in the fields of planning, architecture, and public policy. 2.3 Defining Elements Prospect New Town in Longmont, Colorado, showing a mix of aggregate housing and traditional detached homes The husband-wife team of town planners Andrés Duany and Elizabeth PlaterZyberk, two of the founders of the Congress for the New Urbanism, met at Princeton University. Their beliefs coalesced while at the Yale School of Architecture in New Haven. While living in one of New Haven's Victorian neighborhoods, they observed mixed-use streetscapes with corner shops, front porches, and a diversity of well-crafted housing. According to Duany and PlaterZyberk, the heart of New Urbanism is in the design of neighborhoods, which can be defined by thirteen elements: 1. The neighborhood has a discernible center. This is often a square or a green and sometimes a busy or memorable street corner. A transit stop would be located at this center. 2. Most of the dwellings are within a five-minute walk of the center, an average of roughly 1/4 mile or 1,320 feet (0.4 km). 3. There are a variety of dwelling types — usually houses, rowhouses, and apartments — so that younger and older people, singles, and families, the poor, and the wealthy may find places to live. 4. At the edge of the neighborhood, there are shops and offices of sufficiently varied types to supply the weekly needs of a household.
Slide 31: 5. A small ancillary building or garage apartment is permitted within the backyard of each house. It may be used as a rental unit or place to work (for example, an office or craft workshop). 6. An elementary school is close enough so that most children can walk from their home. 7. There are small playgrounds accessible to every dwelling — not more than a tenth of a mile away. 8. Streets within the neighborhood form a connected network, which disperses traffic by providing a variety of pedestrian and vehicular routes to any destination. 9. The streets are relatively narrow and shaded by rows of trees. This slows traffic, creating an environment suitable for pedestrians and bicycles. 10.Buildings in the neighborhood center are placed close to the street, creating a well-defined outdoor room. 11.Parking lots and garage doors rarely front the street. Parking is relegated to the rear of buildings, usually accessed by alleys. 12.Certain prominent sites at the termination of street vistas or in the neighborhood center are reserved for civic buildings. These provide sites for community meetings, education, and religious or cultural activities. 13.The neighborhood is organized to be self-governing. A formal association debates and decides matters of maintenance, security, and physical change. Taxation is the responsibility of the larger community. 2.3 Examples United States
Slide 32: Grande Market Square in Burnsville, Minnesota. Small scale redevelopment in suburban communities are often done in new urbanist style. New urbanism is having a growing influence on how and where metropolitan regions choose to grow. At least fourteen large-scale planning initiatives are based on the principles of linking transportation and land-use policies, and using the neighborhood as the fundamental building block of a region.[citation needed] More than six hundred new towns, villages, and neighborhoods in the U.S. following new urbanism principles are planned or under construction. Hundreds of new, small-scale, urban and suburban infill projects are under way to reestablish walkable streets and blocks. In Maryland and several other states, new urbanist principles are an integral part of "smart growth" legislation. In the mid-1990s, the U.S. Department of Housing and Urban Development (HUD) adopted the principles of the new urbanism in its multi-billion dollar program to rebuild public housing projects nationwide. New urbanists have planned and developed hundreds of projects in infill locations. Most were driven by the private sector, but many, including HUD projects, used public money. Seaside Seaside, Florida, the first fully new urbanist town, began development in 1981 on eighty acres (324,000 m²) of Florida Panhandle coastline. It was featured on the cover of the Atlantic Monthly in 1988, when only a few streets were completed, and has become internationally famous for its architecture, and the quality of its streets and public spaces.
Slide 33: Seaside is now a tourist destination and appeared in the movie The Truman Show. Lots sold for $15,000 in the early 1980s, and slightly over a decade later, the price had escalated to about $200,000. Today, most lots sell for more than a million dollars, and some houses top $5 million. Stapleton The site of the former Stapleton International Airport in Denver, Colorado, closed in 1995, is now being redeveloped by Forest City Enterprises is one of the largest new urbanist project in the United States. Construction began in 2001. The new community is zoned for residential and commercial development, including office parks and "big box" shopping centers. Stapleton is by far the largest neighborhood in the city of Denver and an eastern portion of the redevelopment site lies in the neighboring city of Aurora. The design emphasizes a pedestrian orientation rather than the automobile-oriented designs found in many other planned developments. Nearly a third of the airport site was set aside for public parks and open space. Stapleton is the site of the Denver School for Science and Technology, a 451student public high school (grades 9-12) that is a charter school.[5] By the end of 2006, about 2,500 houses and more than 300 apartments had been built on the Stapleton site.[6] When complete in about 15 years, it is expected to provide 8,000 houses, 4,000 apartments, 4 schools and 2 million square feet (180,000 m²) of retail space. Up to 30,000 people could live there.[7] Northfield Stapleton, one of the development's major retail centers, recently opened.
Slide 34: All of Stapleton's airport infrastructure has been removed except for the control tower and a parking structure which remain standing as a reminder of the site's former days. Mesa del Sol Mesa del Sol, in Albuquerque, New Mexico (Massive Masterplanned Community) a 12,900-acre mixed-use is currently being developed by Forest City Enterprises as the largest new urbanist project in the United States. Mesa del Sol has currently 3,000 jobs and will have approximately 40,000 jobs created over 35-50 buildout and 18 million square feet of office, industrial and retail space.Mesa del Sol will offer a variety of home-types including town homes, condominiums, apartments, single-family houses and semi-custom homes as well are planning for community centers, schools, family parks and access to jobs.Mesa del Sol will be build on 20 square miles of land and will have 37,500 homes for 100,000 residents build over master plan of 35 to 50 years and will set aside 3,200 acres for parks and open space. The first homes at Mesa del Sol are scheduled for touring late in 2009, with homebuyers moving in as early as 2010, Home prices will reflect a wide range, from approximately $125,000 to $300,000 dollars.Mesa del Sol first town center that will be build in the first phaseselected world-renowned architect Antoine Predock, AIA, of Albuquerque to design a 78,000-square-foot mixed-use town center building. The town center, which began construction in 2008, this will be first the hub for Mesa del Sol and will house a visitor center, business office space and retail businesses. The town center will have The features a curved glass facade and Video clips will be produced by Sony, a Mesa del Sol tenant, as well as aerial images of the town will be projected onto a 60-foot-tall by 280-foot-wide doublewalled screen that arcs in a 360-foot radius. This curved silicon glass element is the curtain wall. It mitigates solar gain through a combination of low-e coatings,
Slide 35: interior solar shades, and a customized silk-screen ceramic frit pattern derived from a bone’s internal lattice structure.The Architect of will have features a curtain wall whose ceramic frit controls daylight transmission, during the day, and serves as a film project screen at night.The first town center will be a L-shaped structure that has ground-level shops and restaurants with and a two-story covered open-air public zone for meetings and gatherings, in addition four large villiges center and a urban center are all plan for local shopping.Mesa del Sol also has 14 schools planned including 3 combine middle through high schools plans plus charter, private schools, colleges, unversity branch. Quay Valley Ranch Quay Valley Ranch- is proposed $25 billion dollars planned community consisting of about 13,172 acres acres or 20 square mile for 150,000 residents with 45,000 jobs and 50,000 homes thatt would be built in Five phases over 25 years in unincorporated Kings County, California, located approximately halfway between or 2.5 hours to Los Angeles and 2.5 hours to San Francisco,It will be a model town for the 21st Century — a self-sustaining community that seamlessly melds the best qualities of "New Urbanism" with the traditions of the San Joaquin Valley's small rural towns, while carefully preserving the natural surroundings of the area. It propoThe community would include a water park, resort hotels and a convention center. There would be a university research campus, a trucking hub, a driving school for novices and race car drivers, manmade rivers and canals, restored wetlands, set aside land permanently for organic agriculture,Amusement and theme park,a 50,000 seat racetrack, an auto mall,Regional retail centers,town center with river walk, 30,000,000 feet of commerical, industrial land, farms, houses, schools and a medical centers.The planned community is being organized by over 250
Slide 36: Planning Team Members by Kings County Ventures, LLC, a limited liability company incorporated and registered in California that has put project on hold. Here the video of town to be:http://www.quayvalley.com/entertainmentvideo.html Haile Plantation Haile Plantation, Florida, is a 2,600 household (1,700 acre) development of regional impact southwest of the City of Gainesville, within Alachua County. Haile Village Center is a traditional neighborhood center within the development. It was originally started in 1978 and completed in 2007. In addition to the 2,600 homes the neighborhood consists of two merchant centers (one a New England narrow street village and the other a chain grocery strip mall). There are also two public elementary schools and an 18-hole golf course. Disney's Celebration, Florida In June 1996, the Walt Disney Company unveiled its 5,000 acre (20 km²) town of Celebration, near Orlando, Florida. Celebration opened its downtown in October, 1996, while Seaside's downtown was still mostly unbuilt. It has since eclipsed Seaside as the best-known new urbanist community, but Disney shuns the label, calling Celebration simply a "town." Disney has been criticized for insipid nostalgia, and heavy-handed rules and management.[ Other countries View of Poundbury, Dorset, UK New Urbanism is closely related to the Urban village movement in Europe. They both occurred at similar times and share many of the same principles although
Slide 37: urban villages has an emphasis on traditional city planning. In Europe many brown-field sites have been redeveloped since the 1980s following the models of the traditional city neighbourhoods rather than Modernist models. One wellpublicized example is Poundbury in England, a suburban extension to the town of Dorchester, which was built on land owned by the Duchy of Cornwall under the overview of Prince Charles. The original masterplan was designed by Leon Krier. A report carried out after the first phase of construction found a high degree of satisfaction by residents, although the aspirations to reduce car dependency had not been successful. Rising house prices and a perceived premium have made the open market housing unaffordable for many local people.[8] The Council for European Urbanism (C.E.U.), formed in 2003, shares many of the same aims as the US New Urbanists. C.E.U.'s Charter is a development of the Congress for the New Urbanism Charter revised and reorganised to relate better to European conditions. An Australian organisation, Australian Council for New Urbanism has since 2001 run conferences and events to promote new urbanism in that country. A New Zealand Urban Design Protocol was created by the Ministry for the Environment in 2005. There are many developments around the world that follow New Urbanist principles to a greater or lesser extent: • Orchid Bay, Belize is one of the largest New Urbanist projects in Central America and the Caribbean. Val d'Europe, east of¨Paris, France. Developed by Disneyland Resort Paris, this town is a kind of European counterpart to Walt Disney World Celebration City. McKenzie Towne is a new urbanist development which commenced in 1995 by Carma Developers LP in Calgary and has an expected completion of 2011. • •
Slide 38: • The Alta de Lisboa project, in north Lisbon, Portugal, is one of the largest new urbanist projects in Europe. The structure plan for Thimphu, Bhutan, follows Principles of Intelligent Urbanism, which share underlying axioms with the New Urbanism. Jakriborg, in Southern Sweden, is a recent example of the new urbanist movement. Other developments can be found in Heulebrugge, the Netherlands; KnokkeHeist, in Belgium; and Fonti di Matilde, Italy. • • • There are several such developments in South Africa. The most notable is Melrose Arch in Johannesburg. The first development in the Eastern Cape, one of the lesser known provinces in the country, is located in East London. The development, announced in 2007, comprises 30 hectares. It is made up of three apartment complexes together with over 30 residential site as well as 20,000 sqm of residential and office space. The development is valued at over R2-billion ($250 million). Abuja, Nigeria Abuja, Nigeria is the new capital city of Nigeria. This is a city that has its concept has far back as 1976 during Late General Murtala Muhammed. The capital city of Nigeria was finally located in the year 1997 when General Ibrahim Babangida became the Head of State. It was a modern city with world class facility. The initiative mind is to decongest Lagos and to serve as the administrative center as Lagos remained the commercial center of Nigeria. 2.3 New Urbanist Organizations
Slide 39: The primary organization promoting the New Urbanism in the United States is the Congress for the New Urbanism (CNU). The Congress has met annually since 1993 when they held their first meeting in Alexandria, VA with approximately 100 attendees. By 2008 the Congress was drawing 2,000 to 3,000 attendees to the annual meetings. The Congress began forming local and regional chapters circa 2004 with the founding of the New England and Florida Chapters. By 2009 there were 12 official chapters and interest groups for 11 more. While the CNU has international participation, sister organizations have been formed in other areas of the world including the Council for European Urbanism (CEU), the Movement for Israeli Urbanism (MIU) and the Australian Council for the New Urbanism. By 2002 student chapters referring to themselves as Students for the New Urbanism began appearing at universities including the University of Georgia, Notre Dame University, and the University of Miami. In 2003, a group of younger professionals and students met at the 11th Congress in Washington, D.C. and began developing a "Manifesto of the Next Generation of New Urbanists". The Next Generation of New Urbanists held their first major session the following year at the 12th meeting of the CNU in Chicago in 2004. The group has continued meeting annually as of 2009 with a focus on young professionals, students, new member issues, and ensuring the flow of fresh ideas and diverse viewpoints within the New Urbanism and the CNU. Spin off projects of the New Generation of the New Urbanists include the Living Urbanism publication first published in 2008. The CNU has spawned publications and research groups. Publications include the New Urban News and the New Town Paper. Research groups have formed independent nonprofits to research individual topics such as the Form-Based Codes
Slide 40: Institute, The National Charrette Institute and the Center for Applied Transect Studies. In the United Kingdom New Urbanist and European urbanism principles are practiced and taught by the The Prince's Foundation for the Built Environment. Other organisations promote New Urbanism as part of their remit, such as INTBAU, A Vision of Europe, and others. The CNU and other national organizations have also formed partnerships with likeminded groups. Organizations under the banner of Smart Growth also often work with the Congress for the New Urbanism. In addition the CNU has formed partnerships on specific projects such as working with the [United States Green Building Council] and the National Resources Defense Council to develop the Leadership in Energy and Environmental Design for Neighborhood Development standards and with the Institute of Transportation Engineers to develop a Context Sensitive Solutions (CSS) Design manual. 2.4 New Urbanism in Film The 1998 fantasy comedy-drama film The Truman Show uses the real life New Urbanist town of Seaside, Florida as the setting for a perfect, fictional town constructed as a set for a television show. The 2004 documentary The End of Suburbia: Oil Depletion and the Collapse of the American Dream argues that the depletion of oil will result in the demise of the sprawl-type development. [9] New Urban Cowboy: Toward a New Pedestrianism, a feature length 2008 documentary about urban designer Michael E. Arth, explains the principles of his New Pedestrianism, a more ecological and pedestrian-oriented version of New
Slide 41: Urbanism. The film also gives a brief history of New Urbanism, and chronicles the rebuilding of an inner city slum into a model of New Urbanism. 2.5 Criticisms New urbanism has drawn both praise and criticism from all quarters of the political spectrum. Some libertarians and fiscal conservatives view new urbanism as a collectivist plot designed to rob Americans of their civil freedoms, property rights, and free-flowing traffic. Perhaps the most frequent criticism of the movement is that the most famous and highest-profile projects most associated with the movement (primarily Celebration, Kentlands, and Seaside) are all greenfield projects built on what was previously open space and therefore are just another form of sprawl. (The city of Hercules on the other hand is developing its New Urbanism communities on brownfields.) Critics react to this as a controlled sprawl that assumes that social situations can and should also be controlled, such that preconceived rules of what a town need be are first worked out on paper and then acted out in real space. Often the results are elitist and exclusionary, and are almost always conservative in nature. Although the current use of non-mixed ghettoed social housing projects have been a dismal failure, critics claim that the effectiveness of the New Urbanist solution of mixed income developments lacks statistical evidence. However, numerous studies by independent think tanks provide support to the basis for addressing poverty through mixed-income developments, because these developments facilitate the bridging of social capital, and thus provide for a higher shared quality of life across socioeconomic cleavages.
Slide 42: A stream of thought in sustainable development maintains that sustainability is based primarily on the combination of high density and transit service. Critics claim many new urbanist developments fall short of being truly sustainable, to the extent that they rely on automobile transport, and serve the detached single family housing market. Many new urbanists claim that this is an incentive that prepares people in transition from conventional suburban living to going back to downtown living. The New Urbanist preference for 'permeable' street grids has been criticized on the grounds that it gives private motor vehicles an advantage over walking, cycling and public transport. The transport performance of some New Urbanist developments, such as Poundbury has been disappointing, with surveys revealing high levels of car use. The alternative view, termed 'filtered permeability' (see Permeability (spatial and transport planning)) is that to give pedestrians and cyclists a time and convenience advantage, they need to be separated from motor vehicles in places. A forthcoming rating system for neighborhood environmental design, LEED-ND, being developed by the U.S. Green Building Council, Natural Resources Defense Council, and the Congress for the New Urbanism [1], should help to quantify the sustainability of New Urbanist neighborhood design. New Urbanist and board member of CNU, Doug Farr has taken a step further and coined Sustainable Urbanism, which combines New Urbanism and LEED-ND to create walkable, transit-served urbanism with high performance buildings and infrastructure. While New Urbanism seeks to create walkable communities, it lacks an emphasis on requiring these communities to participate in the green building movement. 2.6 Multiple Listing Service
Slide 43: A Multiple Listing Service (MLS) (also Multiple Listing System or Multiple Listings Service) is a suite of services that (1) enables brokers to establish contractual offers of compensation (among brokers); (2) facilitates cooperation with other broker participants; (3) accumulates and disseminates information to enable appraisals; (4) is a facility for the orderly correlation and dissemination of listing information to better serve broker's clients, customers and the public. A multiple listing service's database and software is used by real estate brokers in real estate (or aircraft broker[citation needed] in other industries for example), representing sellers under a listing contract to widely share information about properties with other brokers who may represent potential buyers or wish to cooperate with a seller's broker in finding a buyer for the property or asset. The listing data stored in a multiple listing service's database is the proprietary information of the broker who has obtained a listing agreement with a property's seller. There is no single authoritative "MLS", and no universal data format. However, in real estate there is a data standard - Real Estate Transaction Standard - that is being deployed among many[who?] MLS's in North America.[1] The many local and private databases—some of which are controlled by single associations of realtors or groupings of associations (which represent all brokers within a given community or geographical area) or by real estate brokers—are collectively referred to as the MLS because of their data sharing or reciprocal access agreements. Seen most widely in the US and Canada but spreading to other countries in a variety of forms, the MLS combines the listings of all available properties that are represented by brokers who are both members of that MLS system and of NAR or CREA, (the National Association of Realtors in the US or the Canadian Real Estate Association).
Slide 44: The primary purpose of the MLS is to provide a facility to publish a "unilateral offer of compensation" by a listing broker, to other broker participants in that MLS. In other words, the commission rate that is offered by the listing broker is published within the MLS to other cooperating brokers. This offer of compensation is considered a contractual obligation, however it can be negotiated between the listing broker and the broker representing the buyer. Since the commission for a transaction as well as the property features are contained in the MLS system, it is in the best interests of the broker participants (and thereby the public) to maintain accurate and timely data. The additional benefit of the MLS system is that an MLS subscriber may search the MLS system and retrieve information about all homes for sale by all participating brokers. MLS systems contain hundreds of fields of information about the features of a property. These fields are determined by real estate professionals who are knowledgeable and experienced in that local marketplace. Whereas public real estate websites contain only a small subset of property data. In North America, the MLS systems are governed by private entities, and the rules are set by those entities with no state or federal oversight, beyond any individual state rules regarding real estate. MLS systems set their own rules for membership, access, and sharing of information, but are subject to nationwide rules laid down by NAR or CREA. An MLS may be owned and operated by a real estate company, a county or regional real estate board of realtors or association of realtors, or by a trade association. Membership of the MLS is generally considered to be essential to the practice of real estate brokerage.
Slide 45: 2.7 Limitations Of Access To The MLS Most MLS systems restrict membership and access to real estate brokers (and their agents) who are appropriately licensed by the state (or province); are members of a local board or association of realtors; and are members of the trade association (e.g., NAR or CREA). However, access is becoming more open as internet sites offer the public the ability to view portions of MLS listings (see below). A person selling his/her own property - acting as a For Sale By Owner (or FSBO) cannot generally put a listing for the home directly into the MLS. An example of an exception to this general practice is the MLS for Spain, [AMLASpain], where FSBO listing are allowed.) Similarly, a properly licensed broker who chooses to neither join the trade association nor operate a business within the association's rules, cannot join the MLS. However, there are brokers and many online services which offer FSBO sellers the option of listing their property in their local MLS database by paying a flat fee or another non-traditional compensation method. 2.8 MLS Systems in North America Canada In Canada, MLS is a cooperative system for the 82,000+ members of the Canadian Real Estate Association (CREA), working through Canada's 99 real estate boards and 11 provincial/territorial associations. The Real Estate Board of Greater Vancouver (REBGV) claims to have pioneered the first MLS in Canada.[4]
Slide 46: A publicly accessible website (at realtor.ca, formerly mls.ca) allows consumers to search an aggregated subset of each participating board's MLS database of active listings, providing limited details and directing consumers to contact a Realtor for more information. United States The largest MLS in the United States is currently the Washington, DC region's Metropolitan Regional Information Systems, Inc (MRIS) covering Washington DC, most of Maryland (including the Chesapeake Bay counties) and suburban Virginia counties, and parts of West Virginia and Pennsylvania. As of late May 2008, it has about 55,600 active members, according to the public access sections of its website,[6] although numbers vary according to when accessed. New York City Although the other boroughs and Long Island have an MLS, MLS has never taken hold in Manhattan. A small group of brokers formed the Manhattan Association of Realtors and operate MLSManhattan.com. MLSManhattan has a small fraction of the total active inventory in Manhattan. The Bronx Manhattan North MLS also offers coverage in Northern Manhattan. It too has failed to acquire widespread adoption by brokers. The prevalent database is operated by the Real Estate Board of New York (REBNY), a non-Realtor entity that suceded from the National Association of Realtors in the 1980s. REBNY operates a database called RLS which stands for REBNY Listing Service. A predecessor of RLS was marketed as R.O.L.E.X
Slide 47: (REBNY Online Listing Exchange), before Rolex Watches claimed trademark infringement. Unlike MLS, RLS does not have under contract, sold or days on market data, nor does it have rental listings. RLS is more of a Gateway of Active listings. There is no single database. The RLS gateway is populated by several private databases that include Online Residential (OLR) and Realplus a proprietary database exclusive to a few large Manhattan Brokers. These databases exchange data continually effectively creating several separate systems with essentially similar data. Another vendor, Klickads, Inc D/B/A Brokers NYC, owned by Lala Wang sued in 2007 to be included in the list of firms permitted to participate in the Gateway. Most Manhattan brokerages are members of REBNY. The REBNY RLS requires all listings to be entered and disseminated within 24 hours (Until 2007 72 Hours to accommodate .pdf 2.9 Policies on Sharing MLS data in the USA agencies without weekend data entry)https://members.rebny.com/jsp/member/docs/manual/Residential_Resolution The National Association of Realtors (NAR) has set policies that permit brokers to show limited MLS information on their websites under a system known as IDX or Internet Data Exchange. NAR has an ownership interest in Move Inc., the company which operates a website that has been given exclusive rights to display significant MLS information. The site is Realtor.com. Using IDX search tools available on most real estate brokers' websites (as well as on many individual agents' sites), potential buyers may view properties available on the market, using search features such as location, type of property (single
Slide 48: family, lease, vacant land, duplex), property features (number of bedrooms and bathrooms), and price ranges. In some instances photos can be viewed. Many allow for saving search criteria and for daily email updates of newly-available properties. However, if a potential buyer finds a property, he/she will still need to contact the listing agent (or their own agent) to view the house and make an offer. The U.S. Department of Justice filed an antitrust lawsuit in September 2005 against the National Association of Realtors over NAR's policy which allowed brokers to restrict access to their MLS information from appearing on the websites of certain brokers which operate solely on the web.[7] This policy applied to commercial entities which are also licensed brokerages, such as HomeGain, which solicit clients by internet advertising and then provide referrals to local agents in return for a fee of 25% to 35% of the commission. The DOJ's antitrust claims also include NAR rules that exclude certain kinds of brokers from membership in MLSs. NAR has revised its policies on allowing access on web sites operated by member brokers and others to what might be considered as proprietary data.[8] The case was settled in May 2008, with NAR agreeing that Internet brokerages would be given access to all the same listings that traditional brokerages are.[9] 2.9 Origin of the MLS According to the National Association of REALTORS: "In the late 1800s, real estate brokers regularly gathered at the offices of their local associations to share information about properties they were trying to sell. They agreed to compensate other brokers who helped sell those properties, and the first
Slide 49: MLS was born, based on a fundamental principal that's unique to organized real estate: Help me sell my inventory and I'll help you sell yours." Alternatives And Changes To The MLS System Up until 1968 almost all brokers involved in transactions represented the seller, either as the seller's agent or as the sub-agent of the listing broker. The seller paid the listing broker who, in turn, was responsible for compensating the broker working with the buyer. The MLS was intended to be a simple system that benefited everyone, including both the buyers and sellers. The 2005 Justice Department antitrust lawsuit against the National Association of Realtors threatens the exclusivity MLS services in the US. If this case undermines MLS exclusivity, open internet MLS systems may begin to thrive, perhaps combined with Web 2.0 technologies such as social networking, allowing buyers and sellers to interact without the need for an agent. MLS Systems Worldwide Although many countries are lacking regulations regarding real estate transactions, lately there are attempts to align with those in developed markets. A special case may be Italy which is developing the first international MLS. Its multilingual interface, which translates property details and all the web pages instantly and automatically into 8 languages, allows estate agents to share their property listings with other estate agents around the world. The platform links over 1000 real estate agents and over 40000 offers from 16 countries worldwide. Europe
Slide 50: In certain European countries, most notably in Spain. The Spanish MLS website is www.mls.es[3] Real estate agents pay subscription fees to an MLS company which then allow property listings to be uploaded onto their servers. Also, all subscribing real estate agents create a property search link on their own websites which links directly to the MLS service. Thus, any site visitor to any of the subscribing agents' sites will be able to find all properties listed on the MLS servers, even though they are visiting the website of a single agent. In effect, every single subscribing real estate agent appears to be offering exactly the same properties for sale, not unlike the situation with IDX systems in the United States. When buyers use the internet to find property, often using Google, the search results usually provide a list of real estate agents’ websites in the locality which is being searched. The buyer clicks through the various websites and starts browsing properties of interest, although every site visited is offering the same properties because they are all linked to the same MLS server. The buyer then has to choose an agent (again, not very different from elsewhere), but it does force the buyer to make a decision, since all agents in the area have access to all properties and the seller's agent will benefit regardless of who brings the buyer, again very like the US. Although there are currently no regulations in Europe in relation to MLS, it may be a matter of time before its use may be viewed as a restrictive practice designed to benefit real estate agents, rather than consumers.
Slide 51: Chapter Three: Principles of Intelligent Urbanism 3.1 Introduction
Slide 52: Principles of Intelligent Urbanism (PIU) is a theory of urban planning composed of a set of ten axioms intended to guide the formulation of city plans and urban designs. They are intended to reconcile and integrate diverse urban planning and management concerns. These axioms include environmental sustainability, heritage conservation, appropriate technology, infrastructure efficiency, placemaking, "Social Access," transit oriented development, regional integration, human scale, and institutional integrity. The PIU evolved from the city planning guidelines formulated by the International Congress of Modern Architecture (CIAM), the urban design approaches developed at Harvard's pioneering Urban Design Department under the leadership of Josep Lluis Sert, and the concerns enunciated by Team Ten. It is most prominently seen in plans prepared by Christopher Charles Benninger and his numerous colleagues in the Asian context (Benninger 2001). They form the elements of the planning curriculum at the School of Planning, Ahmedabad, which Benninger founded in 1971. They were the basis for the new capital plan for Thimphu, Bhutan. 3.2 Axioms Principle One: A Balance with Nature According to proponents of Intelligent Urbanism, balance with nature emphasizes the distinction between utilizing resources and exploiting them. It focuses on the thresholds beyond which deforestation, soil erosion, aquifer depletion, siltation and flooding reinforce one another in urban development, saving or destroying life support systems. The principle promotes environmental assessments to identify fragile zones, threatened ecosystems and habitats that can be enhanced through
Slide 53: conservation, density control, land use planning and open space design (McCarg: 1975). This principle promotes life cycle building energy consumption and pollutant emission analysis. This principle states there is a level of human habitation intensity wherein the resources that are consumed will be replaced through the replenishing natural cycles of the seasons, creating environmental equilibrium. Embedded in the principle is contention that so long as nature can resurge each year; so long as the biomass can survive within its own eco-system; so long as the breeding grounds of fauna and avifauna are safe; so long as there is no erosion and the biomass is maintained, nature is only being utilized. Underlying this principle is the supposition that there is a fragile line that is crossed when the fauna, which cross-fertilizes the flora, which sustains the soil, which supports the hillsides, is no longer there. Erosion, siltation of drainage networks and flooding result. After a point of no return, utilization of natural resources will outpace the natural ability of the eco-system to replenish itself. From there on degradation accelerates and amplifies. Deforestation, desertification, erosion, floods, fires and landslides all increase. The principle states that blatant "acts against nature" include cutting of hillside trees, quarrying on slopes, dumping sewage and industrial waste into the natural drainage system, paving and plinthing excessively, and construction on steep slopes. This urban theory proposes that the urban ecological balance can be maintained when fragile areas are reserved, conservation of eco-systems is pursued, and low intensity habitation precincts are thoughtfully identified. Thus, the principles operate within the balance of nature, with a goal of protecting and conserving those elements of the ecology that nurture the environment. Therefore,
Slide 54: the first Principle of Intelligent Urbanism is that urbanization be in balance with nature. Principle Two: A Balance with Tradition Balance with Tradition is intended to integrate plan interventions with existing cultural assets, respecting traditional practices and precedents of style (Spreiregen: 1965). This urban planning principle demands respect for the cultural heritage of a place. It seeks out traditional wisdom in the layout of human settlements, in the order of building plans, in the precedents of style, in the symbols and signs that transfer meanings through decoration and motifs. This principle respects the order engendered into building systems through years of adaptation to climate, to social circumstances, to available materials and to technology. It promotes architectural styles and motifs designed to communicate cultural values. This principle calls for orienting attention toward historic monuments and heritage structures, leaving space at the ends of visual axis to “frame” existing views and vistas. Natural views and vistas demand respect, assuring that buildings do not block major sight lines toward visual assets. Embedded in the principle is the concern for unique cultural and societal iconography of regions, their signs and symbols. Their incorporation into the spatial order of urban settings is promoted. Adherents promote the orientation and structuring of urban plans using local knowledge and meaning systems, expressed through art, urban space and architecture. Planning decisions must operate within the balance of tradition, aggressively protecting, promoting and conserving generic components and elements of the urban pattern.
Slide 55: Principle Three: Appropriate Technology Appropriate technology emphasizes the employment of building materials, construction techniques, infrastructural systems and project management which are consistent with local contexts. People's capacities, geo-climatic conditions, locally available resources, and suitable capital investments all temper technology. Where there are abundant craftspeople, labour intensive methods are appropriate. Where there is surplus savings, capital intensive methods are appropriate. For every problem there is a range of potential technologies, which can be applied, and an appropriate fit between technology and other resources must be established. Proponents argue that accountability and transparency are enhanced by overlaying the physical spread of urban utilities and services upon electoral constituencies, such that people’s representatives are interlinked with the urban technical systems needed for a civil society. This principle is in sync with "small is beautiful" concepts and with the use of local resources. Principle Four: Conviviality The fourth principle sponsors social interaction through public domains, in a hierarchy of places, devised for personal solace, companionship, romance, domesticity, "neighborliness," community and civic life (Jacobs:1993). According to proponents of Intelligent Urbanism, vibrant societies are interactive, socially engaging and offer their members numerous opportunities for gathering and meeting one another. The PIU maintain that this can be achieved through design and that society operates within hierarchies of social relations which are space specific. The hierarchies can be conceptualized as a system of social tiers, with each tier having a corresponding physical place in the settlement structure.
Slide 56: A Place for The Individual A goal of Intelligent Urbanism is to create places of solitude. These may be in urban forests, along urban hills, beside quiet streams, in public gardens and in parks where one can escape to meditate and contemplate. According to proponents, these are the quiet places wherein the individual consciousness dialogues with the rational mind. Idle and random thought sorts out complexities of modern life and allows the obvious to emerge. It is in these natural settings that the wandering mind finds its measure and its balance. Using ceremonial gates, directional walls and other “silent devices” these spaces are denoted and divined. Places of the individual cultivate introspection. These spaces may also be the forecourts and interior courtyards of public buildings, or even the thoughtful reading rooms of libraries. Meditation focuses thought and sharpens one’s control over the conscious world. Intelligent urbanism creates a domain for the individual to mature through self-analysis and self-realization. A Place for Friendship The axiom insists that in city plans there must be spaces for “beautiful, intimate friendship” where unfettered dialogue can happen. This principle insists that such places will not exist naturally in a modern urban fabric. They must be a part of the conscientious design of the urban core, of the urban hubs, of urban villages and of neighborhoods, where people can meet with friends and talk out life’s issues, sorrows, joys and dilemmas. This second tier is important for the emotional life of the populace. It sponsors strong mental health within the people, creating places where friendship can unfold and grow.
Slide 57: A Place for Householders There must be spaces for householders, which may be in the form of dwellings for families, or homes for intimate companions, and where young workmates can form a common kitchen. Whatever their compositions, there must be a unique domain for social groups, familiar or biological, which have organized themselves into households. These domestic precincts are where families live and carry out their day-to-day functions of life. This third tier of conviviality is where the individual socializes into a personality. Housing clusters planned according to this axiom create a variety of household possibilities, which respond to a range of household structures and situations. It recognizes that households transform through the years, requiring a variety of dwellings types that respond to a complex matrix of needs and abilities, which are provided for in city plans. A Place for The Neighborhood Smaller household domains must cluster into a higher social domain, the neighborhood social group. These are social groups where everyone recognises one another. Festivals are celebrated in neighborhoods, and one may be passively drawn into local functions without any proactive effort. In rural settings these are clusters of houses in hamlets, formed of large extended families, where everyone knows each other, recognizes all of the good and bad qualities of each person, and where social patterns of behavior are enforced without written codes, or oppressive regimentation. In contemporary social settings the neighborhood takes on some of the roles that were once sponsored by hamlets composed of familiar members.
Slide 58: In an urban neighborhood each individual knows each other’s face, name, special characteristics, strengths and weaknesses. In an urban village, the “eyes of the street” provide protection and reassurance. Neighborhoods built according to Intelligent Urbanism should accommodate play areas for children, small hang-out places for pre-teens and common facilities like post boxes and notice boards where people can meet casually. Good city planning practice sponsors, through design, such units of social space. It is in this fourth tier of social life that public conduct takes on new dimensions and groups learn to live peacefully among one another. It is through neighborhoods that the “social contract” amongst diverse households and individuals is sponsored. This social contract is the rational basis for social relations and negotiations within larger social groups. Within neighborhoods basic amenities like creches, early learning centers, preventive health care and rudimentary infrastructure are maintained by the community. A Place for Communities The next social tier, or hierarchy, is the community. Historically, communities were tribes who shared social mores and cultural behavioral patterns. In contemporary urban settings communities are formed of diverse people. But these are people who share the common need to negotiate and manage their spatial settings. In plans created through the Principles of Intelligent Urbanism these are called Urban Villages. Like a rural village, social bonds are found in the community management of security, common resources and social space. Urban Villages will have defined social spaces, services and amenities that need to be managed by the community. According to proponents of Intelligent Urbanism
Slide 59: these Urban Villages optimally become the administrative wards, and therefore the constituencies, of the elected members of municipal bodies. Though there are no physical barriers to these communities, they have their unique spatial social domain. Intelligent Urbanism calls for the creation of dense, walkable zones in which the inhabitants recognize each other’s faces, share common facilities and resources, and often see each other at the village centre. This fifth tier of social space is where one needs initiative to join into various activities. It is intended to promote initiative and constructive community participation. There are opportunities for one to be involved in the management of services, and amenities and to meet new people. They accommodate primary education and recreation areas. Good planning practice promotes the creation of community places, where community based organizations can manage common resources and resolve common problems. A Place for the City Domain The Principles of Intelligent Urbanism call for city level domains. These can be plazas, parks, stadia, transport hubs, promenades, "passages" or gallerias. These are social spaces where everyone can go. In many cities one has to pay an entrance fee to access “public spaces” like malls and museums. Unlike the lower tiers of the social hierarchy, this tier is not defined by any biological, familiar, face-to-face or exclusive characteristic. One may find people from all continents, from nearby districts and provinces and from all parts of the city in such places. By nature these are accessible and open spaces, with no physical, social or economic barriers. According to this principle it is the rules of human conduct that order this domain’s behavior. It is civility, or civilization, which protects and energizes such spaces. At the lower tiers, one meets people through introductions, through family ties, and through neighborhood circumstances.
Slide 60: These domains would include all freely accessible large spaces. These are places where outdoor exhibits are held, sports matches take place, vegetables are sold and goods are on display. These are places where visitors to the city meander amongst the locals. Such places may stay the same, but the people are always changing. Most significant, these city scale public domains foster public interaction; they sponsor unspoken ground rules for unknown people to meet and to interact. They nurture civic understanding of the strength of diversity, variety, a range of cultural groups and ethnic mixes. It is this higher tier of social space which defines truly urbane environments. Every social system has its own hierarchy of social relations and interactions. Intelligent Urbanism sees cyberspace as a macro tier of conviviality, but does not discount physical places in forging relationships due to the Internet. These are reflected through a system of ‘places’ that respond to them. Good urban planning practice promotes the planning and design of such ‘places’ as elemental components of the urban structure. Principle Five: Efficiency The principle of efficiency promotes a balance between the consumption of resources such as energy, time and fiscal resources, with planned achievements in comfort, safety, security, access, tenure, productivity and hygiene. It encourages optimum sharing of public land, roads, facilities, services and infrastructural networks, reducing per household costs, while increasing affordability, productivity, access and civic viability. Intelligent Urbanism promotes a balance between performance and consumption. Intelligent urbanism promotes efficiency in carrying out functions in a cost
Slide 61: effective manner. It assesses the performance of various systems required by the public and the consumption of energy, funds, administrative time and the maintenance efforts required to perform these functions. A major concern of this principle is transport. While recognizing the convenience of personal vehicles, it attempts to place costs (such as energy consumption, large paved areas, parking, accidents, negative balance of trade, pollution and related morbidity) on the users of private vehicles. Good city planning practice promotes alternative modes of transport, as opposed to a dependence on personal vehicles. It promotes affordable public transport. It promotes medium to high-density residential development along with complementary social amenities, convenience shopping, recreation and public services in compact, walkable mixed-use settlements. These compact communities have shorter pipe lengths, wire lengths, cable lengths and road lengths per capita. More people share gardens, shops and transit stops. These compact urban nodes are spaced along regional urban transport corridors that integrate the region’s urban nodes, through public transport, into a rational system of growth. Good planning practice promotes clean, comfortable, safe and speedy, public transport, which operates at dependable intervals along major origin and destination paths. Such a system is cheaper, safer, less polluting and consumes less energy. The same principle applies to public infrastructure, social facilities and public services. Compact, high-density communities result in more efficient urban systems, delivering services at less cost per unit to each citizen. There is an appropriate balance to be found somewhere on the line between wasteful low-
Slide 62: density individual systems and over-capitalized mega systems. Costly, individual septic tanks and water bores servicing individual households in low-density fragmented layouts, cause pollution of subterranean aquifer systems. The bores dramatically lower ground water levels. Alternatively, large-scale, citywide sewerage systems and regional water supply systems are capital intensive and prone to management and maintenance dysfunction. Operating costs, user fees and cost recovery expenses are high. There is a balance wherein medium-scale systems, covering compact communities, utilize modern technology, without the pitfalls of large-scale infrastructure systems. This principle of urbanism promotes the middle path with regard to public infrastructure, facilities, services and amenities. When these appropriate facilities and service systems overlap electoral constituencies, the “imagery” between user performance in the form of payments for services, systems dependability through managed delivery, and official response through effective representation, should all become obvious and transparent. Good city planning practices promote compact settlements along dense urban corridors, and within populated networks, such that the numbers of users who share costs are adequate to support effective and efficient infrastructure systems. Intelligent Urbanism is intended to foster movement on foot, linking pedestrian movement with public transport systems at strategic nodes and hubs. Mediumscale infrastructural systems, whose catchment areas overlap political constituencies and administrative jurisdictions, result in transparent governance and accountable urban management. Principle Six: Human Scale
Slide 63: Intelligent Urbanism encourages ground level, pedestrian oriented urban patterns, based on anthropometric dimensions. Walkable, mixed use urban villages are encouraged over single-function blocks, linked by motor ways, and surrounded by parking lots. An abiding axiom of urban planning, urban design and city planning has been the promotion of people friendly places, pedestrian walkways and public domains where people can meet freely. These can be parks, gardens, glass-covered gallerias, arcades, courtyards, street side cafes, river- and hill-side stroll ways, and a variety of semi-covered spaces. Intelligent urbanism promotes the scale of the pedestrian moving on the pathway, as opposed to the scale of the automobile on the expressway. Intelligent urbanism promotes the ground plan of imaginable precincts, as opposed to the imagery of façades and the monumentality of the section. It promotes the personal visibility of places moving on foot at eye level. Intelligent urbanism advocates removing artificial barrier and promotes face-toface contact. Proponents argue that the automobile, single use zoning and the construction of public structures in isolated compounds, all deteriorate the human condition and the human scale of the city. According to PIU proponents, the trend towards urban sprawl can be overcome by developing pedestrian circulation networks along streets and open spaces that link local destinations. Shops, amenities, day care, vegetable markets and basic social services should be clustered around public transport stops, and at a walkable distance from work places, public institutions, high and medium density residential areas. Public spaces should be integrated into residential, work, entertainment and
Slide 64: commercial areas. Social activities and public buildings should orient onto public open spaces. These should be the interchange sites for people on the move, where they can also revert into the realm of “slowness,” of community life and of human interaction. Human scale can be achieved through building masses that “step down” to human scale open spaces; by using arcades and pavilions as buffers to large masses; by intermixing open spaces and built masses sensitively; by using anthropometric proportions and natural materials. Traditional building precedents often carry within them a human scale language, from which a contemporary fabric of build may evolve. The focus of Intelligent Urbanism is the ground plane, pedestrian movement and interaction along movement channels, stems, at crossing nodes, at interactive hubs and within vibrant urban cores. The PIU holds many values in common with Transit Oriented Development, but the PIU goal is not merely to replace the automobile, nor to balance it. These are mundane requirements of planning, which the PIU assumes are found in every design and urban configuration. The PIU goal is to enrich the human condition and to enhance the realm of human possibilities. Intelligent Urbanism conceives of urbanity as a process of facilitating human behavior toward more tolerant, more peaceful, more accommodating and more sensitive modalities of interaction and conflict resolution. Intelligent urbanism recognizes that ‘urbanity’ emerges where people mix and interact on a face-to-face basis, on the ground, at high densities and amongst diverse social and economic groups. Intelligent Urbanism nurtures ‘urbanity’ through designs and plans that foster human scale interaction.
Slide 65: Principle Seven: Opportunity Matrix The PIU envisions the city as a vehicle for personal, social, and economic development, through access to a range of organizations, services, facilities and information providing a variety of opportunities for enhanced employment, economic engagement, education, and recreation. This principle aims to increase access to shelter, health care and human resources development. It aims to increase safety and hygenic conditions. The city is an engine of economic growth. This is generally said with regard to urban annual net product, enriched urban economic base, sustained employment generation and urban balance of trade. More significantly this is true for the individuals who settle in cities. Moreover, cities are places where individuals can increase their knowledge, skills and sensitivities. Cities provide access to health care and preventive medicine. They provide a great umbrella of services under which the individual can leave aside the struggle for survival, and get on with the finer things of life. The PIU sees cities as catalysts for personal definition and self discovery. In cities people get inspired, build a drive to achieve, discover aspects of their personalities, skills and intellectual curiosity which they use to craft their identity. The city provides a range of services and facilities, whose realization in villages are the all-consuming struggle of rural inhabitants. Potable water; sewerage management; energy for cooking, heat and lighting are all piped and wired in; solid waste disposal and storm water drainage are taken for granted. The city offers access through roads, public transit, telephones and the Internet. The peace and security provided by effective policing systems, and the courts of law, are just assumed to be there in the city. Then there are the schools, the recreation facilities,
Slide 66: the health services and a myriad of professional services offered in the city market place. Intelligent urbanism views the city as an opportunity system. Yet these opportunities are not equally distributed. Security, health care, education, shelter, hygiene, and most of all employment, are not equally accessible. Proponents of Intelligent Urbanism see the city as playing an equalizing role allowing citizens to grow according to their own essential capabilities and efforts. If the city is an institution, which generates opportunities, intelligent urbanism promotes the concept of equal access to opportunities within the urban system. Intelligent Urbanism promotes a guaranteed access to education, health care, police protection, and justice before the law, potable water, and a range of basic services. Perhaps this principle, more than any other, distinguishes intelligent urbanism from other elitist, efficiency oriented urban charters and regimes. Intelligent Urbanism does not say every household will stay in an equivalent house, or travel in the same vehicle, or consume the same amount of electricity. Intelligent Urbanism recognizes the existence of poverty, of ignorance, of ill health, of malnutrition, of low skills, of gender bias and ignorance of the urban system itself. Intelligent urbanism is courageous in confronting these forms of inequality, and backlogs in social and economic development. Intelligent urbanism sees an urban plan, not only as a physical plan, but also as a social plan and as an economic plan. The ramifications of this understanding are that the people living in intelligent cities should not experience urban development in “standard doses”. In short, people may be born equal or unequal, but they grow inequitably. An important role
Slide 67: of the city is to provide a variety of paths and channels for each individual to set right their own future, against the inequity of their past, or the special challenges they face. According to proponents of this principle this is the most salient aspect of a free society; than even voting rights access to opportunity is the essence of self-liberation and human development (Sen:2000). According to proponents of Intelligent Urbanism, there will be a variety of problems faced by urbanites and they need a variety of opportunity channels for resolution. If there are ten problem areas where people are facing stresses, like economic engagement, health, shelter, food, education, recreation, transport, etc., there must be a variety of opportunities through which individuals and households can resolve each of these stresses. There must be ten channels to resolve each of ten stresses! If this opportunity matrix is understood and responded to, the city is truly functioning as an opportunity matrix. For example, opportunities for shelter could be through the channels of lodges, rented rooms, studio apartments, bedroom apartments and houses. It could be through the channels of ownership, through a variety of tenencies. It could be through opportunities for self-help, or incremental housing. It could be through the up-gradation of slums. Intelligent urbanism promotes a wide range of solutions, where any stress is felt. It therefore promotes a range of problem statements, options, and variable solutions to urban stresses. Intelligent Urbanism sees cities as processes. Proponents argue that good urban plans facilitate those processes and do not place barriers before them. For example, it does not judge a “slum” as a blight on society; it sees the possibility that such a settlement may be an opportunity channel for entry into the city. Such a settlement may be the only affordable shelter, within easy access to employment and education, for a new immigrant household in the city. According to Intelligent Urbanism, if the plan ignores, or destroys such settlements, it is creating a city of
Slide 68: barriers and despair wherein a poor family, offering a good service to the city, is deigned a modicum of basic needs for survival. Alternatively, if the urban plan recognizes that the “slum” is a mechanism for self development, a spring-board from which children have access to education, a place which can be up-graded with potable water, basic sanitary facilities, street lights and paving…then it is a plan for opportunity. Intelligent urbanism believes that there are slums of hope and slums of despair. It promotes slums of hope, which contribute, not only to individual opportunities, but also to nation building. The opportunity matrix must also respond to young professionals, to skilled, wellpaid day laborers, to the upper middle class and to affluent entrepreneurs. If a range of needs, of abilities to pay, of locational requirements, and of levels of development of shelter, is addressed, then opportunities are being created. Intelligent urbanism believes that private enterprise is the logical provider of opportunities, but that alone it will not be just or effective. The regime of land, left to market forces alone, will create an exclusive, dysfunctional society. Intelligent urbanism believes that there is an essential role for the civil society to intervene in the opportunity matrix of the city. Intelligent urbanism promotes opportunities through access to: • Basic and primary education, skill development and knowledge about the urban world; Basic health care, potable water, solid waste disposal and hygiene; Urban facilities like storm drainage, street lights, roads and footpaths; Recreation and entertainment; Transport, energy, communications; • • • •
Slide 69: • • • • • Public participation and debate; Finance and investment mechanisms; Land and/or built-up space where goods and services can be produced; Rudimentary economic infrastructure; Intelligent urbanism provides a wide range of zones, districts and precincts where activities and functions can occur without detracting from one another. Intelligent Urbanism proposes that enterprise can only flourish where a public framework provides opportunities for enterprise. This system of opportunities operates through public investments in economic and social infrastructure; through incentives in the form of appropriate finance, tax inducements, subsidized skill development for workers, and: regulations which protect the environment, safety, hygiene and health. To ensure a stable playing field where one can make an investment with predictable returns, a modicum of regulation is necessary. Proponents argue that it is through government regulations that private investment can be protected from fraud. It is through government regulation that the underpinning conditions for free enterprise can be protected. Principle Eight: Regional Integration Intelligent Urbanism envisions the city as an organic part of a larger environmental, socio-economic and cultural-geographic system, essential for its sustainability. This zone of influence is the region. Likewise, it sees the region as integrally connected to the city. Intelligent Urbanism sees the planning of the city and its hinterland is a single holistic process. Proponents argue if one does not recognize growth as a regional phenomenon, then development will play a hopscotch game of moving just a bit further along an arterial roads, further up valleys
Slide 70: above the municipal jurisdiction, staying beyond the path of the city boundary, development regulations and of the urban tax regime. The region may be defined as the catchment area from which employees and students commute into the city on a daily basis. It is the catchment area from which people choose to visit one city, as opposed to another, for retail shopping and entertainment. Economically the city region may include the hinterland that depends on its wholesale markets, banking facilities, transport hubs and information exchanges. The region needing integration may be seen as the zone from which perishable foods, firewood and building materials supply the city. The economic region can also be defined as the area managed by exchanges in the city. Telephone calls to the region go through the city's telecom exchange; post goes through the city's general post office; money transfers go through the city’s financial institutions and internet data passes electronically through the city’s servers. The area over which “city exchanges” disperse matter can well be called the city’s economic hinterland or region. Usually the region includes dormitory communities, airports, water reservoirs, perishable food farms, hydro facilities, out-of-doors recreation and other infrastructure that serves the city. Intelligent urbanism sees the integrated planning of these services and facilities as part of the city planning process. Intelligent Urbanism understands that the social and economic region linked to a city also has a physical form, or a geographic character. A hierarchy of watersheds, creating valleys and defining edges of neighborhoods, may define the geographic character. Forest ranges, fauna and avifauna habitats are set within such regions and are connected by natural corridors for movement and cross-fertilization. Within this larger, environmental scenario, one must conceptualize urbanism in terms of watersheds, subterranean aquifer systems, and other natural systems that
Slide 71: operate across the entire region. Economic infrastructure, such as roads, hydro basins, irrigation channels, water reservoirs and related distribution networks usually follow the terrain of the regional geography. The region’s geographic portals, and lines of control, may also define defense and security systems deployment. Intelligent Urbanism recognizes that there is always a spillover of population from the city into the region, and that population in the region moves into the city for work, shopping, entertainment, health care and education. With thoughtful planning the region can take pressure off of the city. Traditional and new settlements within the urban region can be enhanced and densified to accommodate additional urban households. There are many activities within the city, which are growing and are incompatible with urban habitat. Large, noisy and polluting workshops and manufacturing units are amongst these. Large wholesale markets, storage sheds, vehicular maintenance garages, and waste management facilities need to be housed outside of the city’s limits in their own satellite enclaves. In larger urban agglomerations a number of towns and cities are clustered around a major urban center forming a metropolitan region. Intelligent Urbanism is not just planning for the present; it is also planning for the distant future. Intelligent Urbanism is not Utopian, but futuristic in its need to forecast the scenarios to come, within its own boundaries, and within the boundaries of the distant future. Principle Nine: Balanced Movement
Slide 72: Intelligent Urbanism advocates integrated transport systems comprising walkways, cycle paths, bus lanes, light rail corridors, under-ground metros and automobile channels. A balance between appropriate modes of movement is proposed. More capital intensive transport systems should move between high density nodes and hubs, which interchange with lower technology movement options. These modal split nodes become the public domains around which cluster high density, pedestrian, mixed-use urban villages (Taniguchi:2001). The PIU accepts that the automobile is here to stay, but that it should not be made essential by design. A well planned metropolis would densify along mass transit corridors and around major urban hubs. Smaller, yet dense, urban nodes are seen as micro-zones of medium level density, public amenities and pedestrian access. At these points lower level nodal split will occur, such as between bus loops and cycle tracts. The PIU views nodal split points as places of urban conviviality and access to services and facilities. Modal split can be between walking, cycling, driving, and mass transit. Bus loops may feed larger rail based rapid movement corridors. Social and economic infrastructure becomes more intensive as movement corridors become more intense. Principle Ten: Institutional Integrity Intelligent Urbanism holds that good practices inherent in considered principles can only be realized through accountable, transparent, competent and participatory local governance, founded on appropriate data bases, due entitlements, civic responsibilities and duties. The PIU promotes a range of facilitative and promotive urban development management tools to achieve appropriate urban practices, systems and forms (Islam: 2000). None of the principles or practices the PIU promotes can be implemented unless there is a strong and rational institutional
Slide 73: framework to define, channel and legalize urban development, in all of its aspects. Intelligent Urbanism envisions the institutional framework as being very clear about the rules and regulations it sponsors and that those using discretion in implementing these measures must do so in a totally open, recorded and transparent manner. Intelligent Urbanism facilitates the public in carrying out their honest objectives. It does not regulate and control the public. It attempts to reduce the requirements, steps and documentation required for citizens to process their proposals. Intelligent Urbanism is also promotive in furthering the interests of the public in their genuine utilization of opportunities. It promotes site and services schemes for households who can construct their own houses. It promotes up-gradation of settlements with inadequate basic services. It promotes innovative financing to a range of actors who can contribute to the city’s development. Intelligent urbanism promotes a limited role for government, for example in “packaging” large-scale urban development schemes, so that the private sector is promoted to actually build and market urban projects, which were previously built by the government. Intelligent Urbanism does not consider itself naïve. It recognizes that there are developers and promoters who have no long term commitment to their own constructions, and their only concern is to hand over a dwelling, gain their profit and move on. For these players it is essential to have Development Control Regulations, which assure the public that the products they invest in are safe, hygienic, orderly, durable and efficient. For the discerning citizen, such rules also lay out the civil understanding by which a complex society agrees to live together.
Slide 74: The PIU contends that there must be a cadastral System wherein all of the land in the jurisdiction of cities is demarcated, surveyed, characterized and archived, registering its legal owner, its legal uses, and the tax defaults against it. The institutional framework can only operate where there is a Structure Plan, or other document that defines how the land will be used, serviced, and accessed. The Structure Plan tells landowners and promoters what the parameters of development are, which assures that their immediate investments are secure, and that the returns and use of such efforts are predictable. A Structure Plan is intended to provide owners and investors with predictable future scenarios. Cities require efficient patterns for their main infrastructure systems and utilities. According to PIU proponents, land needs to be used in a judicious manner, organizing complementary functions and activities into compact, mixed use precincts and separating out non-compatible uses into their own precincts. In a similar manner, proponents argue it is only through a plan that heritage sites and the environment can be legally protected. Public assets in the form of nature, religious places, heritage sites and open space systems must be designated in a legal plan. Intelligent Urbanism proposes that the city and its surrounding region be regulated by a Structure Plan, or equivalent mechanism, which acts as a legal instrument to guide the growth, development and enhancement of the city. According to proponents, there must be a system of participation by the “Stake Holders” in the preparation of plans. Public meetings, hearings of objections and transparent processes of addressing objections, must be institutionalized. Intelligent urbanism promotes Public Participation. Local Area Plans must be prepared which address local issues and take into account local views and sentiments regarding plan objectives, configurations, standards and patterns. Such
Slide 75: plans lay out the sites of plots showing the roads, public open spaces, amenities areas and conservation sites. Land Pooling assures the beneficiaries from provision of public infrastructure and amenities proportionally contribute and that a few individuals do not suffer from reservations in the plan. According to proponents, there must be a system of Floor Area Ratios to assure that the land and the services are not over pressured. No single plot owner should have more than the determined "fair share" of utilization of the access roads, amenities and utilities that service all of the sites. Floor Area Ratios temper this relationship as regulated the manner in which public services are consumed. According to PIU proponents, Transfer of Development Rights benefits land owners whose properties have been reserved under the plan. It also benefits the local authorities that lack the financial resources to purchase lands to implement the Structure Plans. It benefits concentrated, city center project promoters who have to amortize expensive land purchases, by allowing them to purchase the development rights from the owners of reserved lands and to hand over those properties to the plan implementing authority. This allows the local authority to widen roads and to implement the Structure Plan. The local authority then transfers the needed development right to city center promoters. Intelligent Urbanism supports the use of Architectural Guidelines where there is a tradition to preserve and where precedents can be used to specify architectural elements, motifs and language in a manner, which intended to reinforce a cultural tradition. Building designs must respect traditional elements, even though the components may vary greatly to integrate contemporary functions. Even in a greenfield setting Architectural Guidelines are required to assure harmony and continuity of building proportions, scale, color, patterns, motifs, materials and facades.
Slide 76: Intelligent Urbanism insists on safety, hygiene, durability and utility in the design and construction of buildings. Where large numbers of people gather in schools, hospitals, and other public facilities that may become emergency shelters in disasters, special care must be exercised. A suitable Building Code is the proposed instrument to achieve these aims. PIU proponents state that those who design buildings must be professionally qualified architects; those who design the structures (especially of more than ground plus two levels) must be professionally qualified structural engineers; those who build buildings must be qualified civil engineers; and, those who supervise and control construction must be qualified construction managers. Intelligent Urbanism promotes the professionalisation of the city making process. While promoting professionalism, Intelligent Urbanism proposes that this not become a barrier in the development process. Small structures, low-rise structures, and humble structures that do not house many people can be self designed and constructed by the inhabitants themselves. Proponents maintain that there must be recognized Professional Accrediting Boards, or Professional Bodies, to see that urban development employs adequate technical competence. Finally, there must be legislation creating Statutory Local Authorities, and empowering them to act, manage, invest, service, protect, promote and facilitate urban development and all of the opportunities that a modern city must sponsor. Intelligent Urbanism insists that cities, local authorities, regional development commissions and planning agencies be professionally managed. City Managers can be hired to manage the delivery of services, the planning and management of planned development, the maintenance of utilities and the creation of amenities.
Slide 77: Intelligent Urbanism views plans and urban designs and housing configurations as expressions of the people for whom they are planned. The processes of planning must therefore be a participatory involving a range of stakeholders. The process must be a transparent one, which makes those privileged to act as guardians of the people’s will accountable for their decisions and choices. Intelligent Urbanism sees urban planning and city governance as the most salient expressions of civility. Intelligent Urbanism fosters the evolution of institutional systems that enhance transparency, accountability and rational public decision making. 3.3 Criticisms The primary criticism of these 'intelligent' principles has been that it totally depends on the 'intelligence' of the planner, the Master Planner. When the plans concern the desires and aspirations and plans of every individual in a city over generations, the intelligence of any individual is bound to be stretched. Like the city planning of old, the real stakeholders, the people of the city of Thimphu have had very little say in the formulation of the plans and have absolutely no say in the manner of its implementation. The outcome of the plan is a result of the planner's analysis and not a community led process as proposed by Christopher Alexander. Not surprisingly, the plans have caused much dissatisfaction during implementation and is partially succeeding primarily because the people have been threatened with having their land acquired at meager government rates if they did not cooperate.
Slide 78: Chapter Four: Introduction to Pocket Listing 4.1 Introduction A pocket listing is a real estate industry term used in United States which denotes a property where a broker holds a signed listing agreement (or contract) with the seller, whether that be an "Exclusive Right to Sell" or "Exclusive Agency" agreement or contract, but where it is never advertised nor entered into a multiple listing system (MLS) or where advertising is limited for an agreed-upon period of time. In Canada, this is referred to as an "Exclusive Listing". When a broker is hired to sell a property, a listing agreement is executed in writing. In an "Exclusive Right to Sell Agreement", the broker normally agrees to cooperate with other brokers and to share a portion of the total real estate commission paid by the seller. However, in this situation, it is stated that the property shall not be placed in an MLS, and thus there is no agreement to work cooperatively with other brokers.
Slide 79: An alternative form of Agreement might be "Exclusive Agency" where only the broker is given the right to sell the property, and no offer of compensation is ever made to another broker. In that case, the property will never be entered into an MLS. The reasons for a pocket listing may vary from the need for privacy or secrecy to discrimination, and some sellers may have their own reasons for not advertisng a listing in conventional ways, including wanting to sell only to certain types of people. Many full-time agents have knowledge of pocket listings in their own office or in other offices of their own company. While many MLS systems may try to limit this type of listing by requiring execution of a written notice relative to the benefits of MLS publicity, they may encourage members to refrain from taking pocket listings. There are some companies which list property as pocket listings for a short time before entering it into their MLS. With the written agreement of the seller, this would allow the company to try to obtain both the listing side and the "selling" side of the commission, an industry term known as "both sides of the transaction". A real estate company which is not a member of any MLS may have pocket listings, but may still be willing to cooperate with other real estate professionals in the sale of their listings. A broker or agent having a Pocket Listing can sometimes imply that the property will be sold directly to a buyer by the seller's agent. 4.2 Comparison with Open Listings
Slide 80: Pocket listings are not "Open Listings". An open listing is an Agreement between a seller and a broker whereby the property is available for sale by any real estate professional who can advertise, show, or negotiate the sale, and whoever brings an acceptable offer would receive compensation. Real estate companies will typically require that a written agreement for an open listing be signed by the seller to ensure the payment of a commission. "For Sale By Owners" (FSBOs) often also offer open listings by signing an agreement to pay a broker who brings them an acceptable offer, but these will usually not be pocket listings. 4.3 Advantages of Pocket Listing Pocket listings may give buyers an extra advantage when searching for real estate which is not advertised anywhere else. These special properties, while under listing contracts, may be unique because they are sold privately and may never be intended to be listed on the Multiple Listing Service (MLS). Many property owners want to sell their real estate, but do not want the aggravation associated with showing the property. This is especially true in a slower market where sellers of real estate want buyers, not just curious people. On the other hand, sellers genuinely want to sell their property and will show it to serious buyers. To ensure this, the seller typically has a real estate broker who qualifies a potential buyer on their availability to purchase. A very important benefit to the seller is that the transaction typically only has one real estate agent, thus potentially lowering the overall commission costs. By directly connecting themselves with sellers' agents, home buyers eliminate the need for a buyers agent (although they will lack buyer representation). If the
Slide 81: buyer's objective is to look at all the available homes for sale in a given area, they would need to look at MLS and all private listings for sale. Only then, would they have completely exhausted their search. Ultimately, the seller must decide if exclusion from the MLS is in his/her best interests and does not limit exposure on the market. 4.4 Listing Contract A listing contract is a contract between a real estate broker (or his/her agent representatives, acting in the broker's name) and a seller or sellers of real property to give the broker the right to offer the property for sale. The contract is often referred to as a listing agreement and, if the broker is a member of the National Association of Realtors, it must include all of the following terms: 1. A beginning date and a termination date. 2. The list price at which the property will be offered for sale. a flat fee or percentage of the sales price. 3. The amount of compensation offered to the broker, whether it is in the form of 4. The terms and conditions under which the brokerage fee shall be paid by the seller. 5. Authorizes the broker to co-operate with other brokers as sub-agents or buyer's agents and details the compensation to be offered to those brokers in the event they procure a buyer. 6. Authorizes the broker to reveal or not to reveal the existence of offers previously received.
Slide 82: In addition, other terms which may appear in the agreement can include: • Authorization to the broker to post a sign, to advertise the property, and to put a lockbox on the door, as well seller's obligations to advise the broker on the condition of the property, and broker's obligations to advise the seller about regulations and laws which may affect the sale. Typically, separate listing agreements exist for the sale of residential property, for land, and for commercial or business property. Upon listing the property, the real estate agency tries to obtain a buyer for the property and, in consideration of successfully finding a satisfactory buyer, the broker anticipates receiving a commission (fee) for the services the brokerage provided. Payment of a Commission or Fee Although the terms of the contract could vary, usually the payment of a commission (or fee) to the brokerage is contingent upon: • the successful negotiation of a purchase contract between a satisfactory buyer and seller and the subsequent ability and willingness of the buyer to close the deal, or finding a satisfactory buyer who is ready, willing, and able to pay the full listing price (or more) for the real estate for sale without any contingencies. • If the seller refuses to sell the real estate when one of the above two conditions applies, it is typically considered that the real estate agent has done his job of finding a satisfactory buyer and the seller must still pay the commission, although the details are determined by the listing contract. Unless closing (or "settlement" or
Slide 83: "close of escrow", as it is known in some parts of the country) is a condition of the listing agreement, the buyer's failure to complete the transaction may not require the seller to pay a commission to the broker. The commission is usually a percentage of the sales price of the property ranging from 2 or 3% up to about 10%, but usually in the range of about 3 - 7% for houses. The commission could also be a flat fee or some combination of flat fee and percentage, particularly in the case of lower-priced properties, vacant lots, or other unusual real estate. The commission is paid by the seller to the listing real estate broker, who will then compensate his/her listing agent and any co-operating brokers/agents from this commission by separate agreements with them. 4.5 Listing Price and Final Contract Price The listing contract typically also includes a listing price for the property and an expiration date by which the contract expires. However, if the property is sold at a lower or higher price, the seller pays a commission at a proportionally lower or higher amount. If the seller does not accept a price lower than the listing price, then the broker will have to wait until a satisfactory sale to earn the commission. In the event of multiple offers being presented, the seller may accept whichever offer is most suitable to him/her, even if the price is not the highest. The percentage commission will be paid according to the accepted price. The seller, often in concurrence with the real estate agent, may choose to accept an offer that is lower than the highest offer for various reasons, such as terms or contingencies in the purchase contract offered or perceived differences in financial qualification of the competing buyers.
Slide 84: Typically, the real estate agent has the experience and data to determine a suitable listing price for the seller's property and will recommend a listing price to the seller. The seller can accept, reject, or try to negotiate a different listing price for the contract. If the seller's price is unrealistically high and the agent cannot convince the seller otherwise, the agent can decline to list the property. 4.6 Expiration Date Listing a property commonly incurs certain expenses for the listing broker and takes some time and effort for the listing salesperson. To make it worthwhile, they want a certain minimum listing time period to have a good chance of selling the property. However, the listing contract must have an expiration date. A typical listing period is often from 3 or 4 months to 6 months. If the property is not sold or under a purchase contract by then, the seller may decide to re-list the property, perhaps with a different listing price, with the same or a different broker or agent, or not list it at all. The listing of the property can start at a date later than the date the listing contract is signed to allow the seller time to prepare the property for showing or sale. 4.7 Types of Listing Contracts There can be several types of listing contracts: • Exclusive right to sell: The seller must pay the brokerage a commission if, by the expiration date in the listing contract, the real estate is sold, regardless of whether the buyer is obtained through the agency or not. Even if the seller finds the buyer him/herself, a commission is still owed to the brokerage. Furthermore, the seller cannot list the property with any other broker until the listing expires with the property unsold.
Slide 85: Brokers who are REALTORS and, thus, are members of NAR are obliged to enter the property into the local MLS system and offer compensation to cooperating brokers. • Exclusive Agency: The seller can only list the property with one brokerage until the listing contract expires with the property unsold. The seller must pay the broker a commission if the real estate is sold to a buyer obtained through that brokerage. By agreement, if the seller finds the buyer him/herself, the seller does not have to pay a commission. Since there will be no co-operating broker involved, the property will not be listed in the MLS. • Open Agency: A seller can enter into an agreement to sell his/her property with more than one brokerage in open agency listings. The seller must pay a commission only to the brokerage which brings the buyer for the real estate. Typically, if the seller finds the buyer him/herself, the seller does not have to pay a commission.
Slide 86: Chapter Five: Real Estate Transaction 5.1 Introduction A real estate transaction is the process whereby rights in a unit of property (or designated real estate) is transferred between two or more parties, e.g. in case of conveyance one party being the seller(s) and the other being the buyer(s). It can often be quite complicated due to the complexity of the property rights being transferred, the amount of money being exchanged, and government regulations. Conventions and requirements also vary considerably among different countries of
Slide 87: the world and among smaller legal entities (jurisdictions). In order to address some of these difficulties, a European Land Information Service (EULIS) was established in 2006, as a consortium of European National Land Registers. The aim of the service is to establish a single portal through which customers are provided with access to information about individual properties, about land and property registration services, and about the associated legal environment.[1] In more abstract terms, a real estate transaction, like other financial transactions, causes transaction costs. In order to identify and possibly reduce these transaction costs, the issue was addressed by the Organization for Economic Co-operation and Development (OECD), through a study commissioned by the European Commission, and through a research action. The mentioned research action ‘Modelling Real Property Transactions’ investigated methods to describe selected transactions in a formal way, to allow for comparisons across countries / jurisdictions. Descriptions were performed both using a more simple format, a Basic Use Case template, [5][6] and more advanced applications of the Unified Modelling Language.[7][8] Process models were compared through an ontology-based methodology[9], and national property transaction costs were estimated for Finland and Denmark [10][11][12] , based on the directions of the United Nations System of National Accounts.[13] Real estate transactions: subdivision, conveyance, and mortgaging, as they are performed in the five Nordic countries are described in some detail.[14] A translation into English is available for the Danish part. 5.2 Residential Examples United States and Canada
Slide 88: The sale of a house in the United States or Canada might involve some or all of the following steps: • Hiring of a real estate broker to represent the seller and handle the logistics of the advertising and sale, except for "for sale by owner" properties where the owner(s) may consult legal counsel or obtain copies of a real estate contract. A buyer may enter the picture in a variety of ways: from seeing advertisements in the media, seeing signs outside a property, or contacting a real estate agent to see a property. A buyer may engage the services of a real estate broker to represent her/him and handle the logistics of finding suitable properties, enabling him/her to become qualified to buy, and the showing of appropriate properties. Advertisement of the price and property details with a Multiple Listing Service, newspaper or web classified listing, lawn sign, or poster in the real estate office. Private showings or general open house for interested buyers or buyers' real estate agents. Interested buyers may get pre-approval for a mortgage of a certain amount from a bank, if they cannot afford the full purchase price in the range they are exploring. Preparation of a written offer to purchase. If prepared by a real estate agent on behalf of the buyer, it is generally done on pre-printed and legally-approved forms provided by the real estate broker's office. An agent representing the buyer will advise his/her client as to the value of including specific contingency clauses such as time to obtain a mortgage commitment or to arrange for inspections. The buyer includes an earnest money payment check which accompanies the offer and which is generally not deposited until all parties are in agreement. • • • • • •
Slide 89: • Submission of offers by interested buyers. Multiple offers may result in bidding, with best offer (not necessarily the highest bid) being awarded the sale. A single offer may often be below the initial asking price, resulting in negotiation between the buyer and seller over the final price, or possibly the rejection of the offer by the seller. After acceptance of a particular offer, a real estate contract is ratified by all parties. It usually creates a short interim period (typically no more than 30 days, often much less) to allow the buyer to thoroughly inspect the property (often with the assistance of a professional home inspector). Depending upon the jurisdiction and traditional practice, a title search is then ordered from a third party settlement or escrow company, pending final settlement. An Appraisal, commissioned, as per custom, by the buyer or seller to determine the value of the building and land in order to satisfy the lender. Depending upon how the contingency paragraphs are worded, if any defects are discovered during the inspection, the buyer may ask that they be repaired, ask that the sale price be lowered, or choose not to purchase the property. The closing of the sale ends the escrow period and completes the transfer of ownership to the buyer. At this time, and all monies change hands and a number of closing costs are paid by the buyer or seller. If as real estate broker is used in the transaction, closing is the time that payment is made to the brokers involved. • • • • • • 5.3 Real Property
Slide 90: In the common law, real property (or realty) refers to one of the two main classes of property, the other being personal property. Real property generally encompasses land, land improvements resulting from human effort including buildings and machinery sited on land, and various property rights over the preceding. The concept is variously named and defined in other jurisdictions: heritable property in Scotland, immobilier in France, and immovable property in Canada, United States, India, Pakistan, Bangladesh, Malta, Cyprus, and in countries where civil law systems prevail, including most of Europe, Russia, and South America. 5.4 Estates & Ownership Interests Defined The law recognizes different sorts of interests, called estates, in real property. The type of estate is generally determined by the language of the deed, lease, or bill of sale through which the estate was acquired. Estates are distinguished by the varying property rights that vest in each, and that determine the duration and transferability of the various estates. A party enjoying an estate is called a "tenant." Some important types of estates in land include: • Fee simple: An estate of indefinite duration, that can be freely transferred. The most common and perhaps most absolute type of estate, under which the tenant enjoys the greatest discretion over the disposition of the property. Conditional Fee simple: An estate lasting forever as long as one or more conditions stipulated by the deed's grantor does not occur. If such a condition does occur, the property reverts to the grantor, or a remainder interest is passed on to a third party. •
Slide 91: • Fee tail: An estate which, upon the death of the tenant, is transferred to his heirs. Life estate: An estate lasting for the natural life of the grantee, called a "life tenant." If a life estate can be sold, a sale does not change its duration, which is limited by the natural life of the original grantee. o • A life estate pur autre vie is held by one person for the natural life of another person. Such an estate may arise if the original life tenant sells her life estate to another, or if the life estate is originally granted pur autre vie. • Leasehold: An estate of limited duration, as set out in a contract, called a lease, between the party granted the leasehold, called the lessee, and another party, called the lessor, having a longer lived estate in the property. For example, an apartment-dweller with a one year lease has a leasehold estate in her apartment. Lessees typically agree to pay a stated rent to the lessor. A tenant enjoying an undivided estate in some property after the termination of some estate of limited duration, is said to have a "future interest." Two important types of future interests are: • Reversion: A reversion arises when a tenant grants an estate of lesser maximum duration than his own. Ownership of the land returns to the original tenant when the grantee's estate expires. The original tenant's future interest is a reversion. Remainder: A remainder arises when a tenant with a fee simple grants someone a life estate or conditional fee simple, and specifies a third party to whom the land goes when the life estate ends or the condition occurs. The third party is said to have a remainder. The third party may have a legal right to limit the life tenant's use of the land. •
Slide 92: Estates may be held jointly as joint tenants with rights of survivorship or as tenants in common. The difference in these two types of joint ownership of an estate in land is basically the inheritability of the estate. In joint tenancy (sometimes called tenancy of the entirety when the tenants are married to each other) the surviving tenant (or tenants) become the sole owner (or owners) of the estate. Nothing passes to the heirs of the deceased tenant. In some jurisdictions the words "with right of survivorship" must be used or the tenancy will assumed to be tenants in common. Tenants in common will have a heritable portion of the estate in proportion to their ownership interest which is presumed to be equal amongst tenants unless otherwise stated in the transfer deed. Real property may be owned jointly with several tenants, through devices such as the condominium, housing cooperative, and building cooperative. 5.5 Jurisdictional Peculiarities In the law of almost every country, the state is the ultimate owner of all land under its jurisdiction, because it is the sovereign, or supreme lawmaking authority. Physical and corporate persons do not have allodial title; they do not "own" land but only enjoy estates in the land, also known as "equitable interests." England and Wales In the United Kingdom, the The Crown is held to be the ultimate owner of all real property in the realm. This fact is material when, for example, property has been disclaimed by its erstwhile owner, in which case the law of escheat applies. In some other jurisdictions (not including the United States), real property is held absolutely.
Slide 93: English law has retained the common law distinction between real property and personal property, whereas the civil law distinguishes between "movable" and "immovable" property. In English law, real property is not confined to the ownership of property and the buildings sited thereon – often referred to as "land." Real property also includes many legal relationships between individuals or owners of land that are purely conceptual. One such relationship is the easement, where the owner of one property may enjoy the right to pass over a neighboring property. Another is the various "incorporeal hereditaments," such as profits a prendre, where an individual may have the right to take crops from land that is part of another's estate. English law retains a number of forms of property which are largely unknown in other common law jurisdictions such as the advowson, chancel repair liability and lordships of the manor. These are all classified as real property, as they would have been protected by real actions in the early common law. USA This section requires expansion. Each U.S. State except Louisiana has its own laws governing real property and the estates therein, grounded in the common law. In Arizona[citation needed], real property is generally defined as land and the things permanently attached to the land. Things that are permanently attached to the land, which also can be referred to as improvements, include homes, garages, and buildings. Manufactured homes can obtain an affidavit of affixture. 5.6 Economic Aspects of Real Property
Slide 94: Land use, land valuation, and the determination of the incomes of landowners, are among the oldest questions in economic theory. Land is an essential input (factor of production) for agriculture, and agriculture is by far the most important economic activity in preindustrial societies. With the advent of industrialization, important new uses for land emerge, as sites for factories, warehouses, offices, and urban agglomerations. Also, the value of real property taking the form of manmade structures and machinery increases relative to the value of land alone. The concept of real property eventually comes to encompass effectively all forms of tangible fixed capital. with the rise of extractive industries, real property comes to encompass natural capital. With the rise of tourism and leisure, real property comes to include scenic and other amenity values. Starting in the 1960s, as part of the emerging field of law and economics, economists and legal scholars began to study the property rights enjoyed by tenants under the various estates, and the economic benefits and costs of the various estates. This resulted in a much improved understanding of the: • Property rights enjoyed by tenants under the various estates. These include the right to: o o o Decide how a piece of real property is used; Exclude others from enjoying the property; Transfer (alienate) some or all of these rights to others on mutually agreeable terms; • Nature and consequences of transaction costs when changing and transferring estates. For an introduction to the economic analysis of property law, see Shavell (2004), and Cooter and Ulen (2003). For a collection of related scholarly articles, see
Slide 95: Epstein (2007). Ellickson (1993) broadens the economic analysis of real property with a variety of facts drawn from history and ethnography. 5.7 Historical Background of Real Property In common law, real property was property that could be protected by some form of real action, in contrast to personal property, where a plaintiff would have to resort to another form of action. As a result of this formalist approach, some things the common law deems to be land would not be classified as such by most modern legal systems, for example an advowson (the right to present to the living of a church) was real property. By contrast the rights of a leaseholder originate in personal actions and so the common law originally treated a leasehold as part of personal property. The law now broadly distinguishes between real property (land and anything affixed to it) and personal property (everything else, e.g., clothing, furniture, money). The conceptual difference was between immovable property, which would transfer title along with the land, and movable property, which a person would retain title to. (The word is not derived from the notion of land having historically been "royal" property. The word royal – and its Spanish cognate real – come from the unrelated Latin word rex, meaning king.) In modern legal systems derived from English common law, classification of property as real or personal may vary somewhat according to jurisdiction or, even within jurisdictions, according to purpose, as in defining whether and how the property may be taxed. Bethell (1998) contains much historical information on the historical evolution of real property and property rights.
Slide 96: 5.8 Real Estate Trends Real estate trends is a generic term used to describe any consistent pattern or change in the general direction of the real estate industry which, over the course of time, causes a statistically noticeable change. This phenomenon can be a result of the economy, a change in mortgage rates, consumer speculations, or other fundamental and non-fundamental reasons. A real estate trend is the catalyst for the change, and it is usually a concept, a belief, a philosophy, or an event. Sometimes a real estate trend evolves to meet a specific need, while others evolve when new products or solutions are launched. For example, when more lenders began offering creative financing products, more borrowers were able to afford a mortgage (at least on paper). At other times, a trend from another industry spills over into the real estate industry and is adopted. Therefore, a trend must have substance and be based on fact. Over time, it will cause pattern of change. Monitoring changes and tracking trends is a not an exact science and can be very hard to predict. U.S. government Involvement The United States of America (U.S.) Department of Justice Antitrust Division announced the launch of a new web site in October 2007 to "educate consumers and policymakers about the potential benefits that competition can bring to consumers of real estate brokerage services and the barriers that inhibit that competition." Among other findings, they report that certain new sales models can reduce consumer home sales costs "by thousands of dollars. For example, in states that allow open competition, some buyer's brokers rebate up to two-thirds of their commission to the customer, and some seller's brokers offer limited-service
Slide 97: packages that let sellers list their homes on the local multiple listing service (MLS) for as little as a few hundred dollars."[1] The DOJ web site, Competition and Real Estate, includes a link to the real estate laws of each U.S. state and how they support or inhibit real estate brokerage competition. Trends in FSBO Sector For Sale By Owner is a real estate term which describes the situation in which a property is offered for sale directly by its owner and without that owner having solicited the help of a real estate broker, implying that no real estate commission is associated with the sale. More and more owners selling their own property are using online marketing companies to advertise their properties. FSBO web sites are now a real part of the real estate market, as the Internet becomes vital in the home-selling process.[2] According to a NY Times article from December 2007, "Nationally...real estate companies are spending 26 percent more on online advertising this year, even as total real estate ad spending declined 3 percent, according to Borrell Associates, a research company." According to a press release by the National Association of Realtors (NAR) regarding their most current annual survey of real estate consumers, 2005 Profile of Home Buyers and Sellers: • • 12% of 2006 US real estate transactions were FSBO. 13% of 2005 US real estate transactions took place via FSBO (down from 14% in 2004).
Slide 98: • The record percentage of 20% of US real estate transactions (since tracking started in 1981) took place in 1987. According to the Canadian Real Estate Association, which claims that 75% to 80% of homes in Canada were sold through brokers, it would appear that "Sale by Owner" accounts for some 20% or 25% of the remainder.
Slide 99: Bibliography "Antitrust division launches web site on competition in the real estate brokerage industry". Swainson, Gail, "Cheaper ways to sell gaining ground", Toronto Star (Toronto), Sept 15, 2007. Martin, Antoinette, "Home Searches That Click," New York Times, December 16, 2007 National Association of Realtors, "Home Buyer & Seller Survey Shows Rising Use of Internet, Reliance on Agents", January 2006, Retrieved 19 Jun 2006 Adkin, David, "Conducting the ultimate yard sale", Globe and Mail (Toronto), Sept 25, 2004 McHARG.I (1975): Design with Nature, Wiley, John and Sons, New York. SEN.A (2000): Development as Freedom: Knopf, New York. SPREIREGEN.P (1965): Urban Design: the Architecture of Towns and Cities, McGraw-Hill, New York. TANIGUCHI.E (2001): City Logistics: Network Modeling and Intelligent Transport Systems, Elsevier Science and Technology Books, Hoboken.
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Slide 106: Katz, Peter (1994). The New Urbanism: Toward an Architecture of Community. New York: McGraw-Hill. ISBN 0-07-033889-2 Kunstler, James Howard (1994). Geography Of Nowhere: The Rise And Decline of America's Man-Made Landscape. New York: Simon & Schuster. ISBN 0-67188825-0 Talen, Emily (2005). New Urbanism & American Planning: The Conflict of Cultures. New York: Routledge. ISBN 0-415-70133-3. Tagliaventi, Gabriele (2002). New Urbanism. Florence: Alinea. ISBN 88-8125602-9. Waugh, David. 2004 Buying New Urbanism: A Study of New Urban Characteristics that Residents Value. Applied Research Project. Texas State University. http://ecommons.txstate.edu/arp/22/