Abstracts » Government

The mistaken improver problem

Article Abstract:

The mistaken improver problem describes a scenario where an individual enhances a piece of land that turns out to be owned by another person. In relation to the mistaken improver problem, a study examined the impact of ownership uncertainty on land use decisions. In particular, this analysis determined when a potential improver should allocate resources to ascertain land ownership before making irreversible improvements on the property. This investigation used a simple model where potential improvers are not sure regarding their ownership of the land to be developed and have to decide if they should determine ownership before investing in improvements. The study also examined legal remedies to compel improvers to first survey ownership before making improvements. The findings and implications of this study are discussed.

Real estate development, Property, Landowners

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A theory and empirical test of land option pricing

Article Abstract:

A bid-price model of land option contracts was developed to investigate the reasons why such contracts are negotiated, and a land option pricing formula was derived. An analysis indicated that landowners set exercise prices to reduce income variance and make sure that the developer would exercise the option. This implies that a zero or near-zero time premium is used when writing land option contracts. Land option contracts help developers gain control over land and help landowners minimize income risk.

Models, Interpretation and construction, Options (Finance), Mathematical models, Installment land contracts

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The dynamic effects of land title systems

Article Abstract:

The registration title system is closer to the benchmark than the recording title system, although both hasten urban development. These systems affect capital-land ratio differently depending on whether the capital-land density is falling or rising.

United States, Methods, Management, Economic aspects, Cities and towns, City planning, Urban planning, Right of property, Property rights, Land titles

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