The term R1 zoning typically refers to a piece of real estate that is located in a neighborhood of single-family residences. Most local laws restrict R1 zoning to one freestanding house intended as a dwelling place for one family.
With R1 zoning, the lot is defined with specific boundaries, and no mobile homes or multi-family units are allowed. Local ordinances differ, but almost invariably specify maximum height, lot size and distance of setback from the street and adjacent houses. The purpose of setbacks in residential zoning is to reduce the level of noise, protect residents from vehicle traffic and create barriers so fires do not jump from one home to another. Some R1 zoning even requires garages or carports to prevent vehicles from clogging residential streets. In other areas, street parking is restricted to one car per residence. With an R1 rating, the "R" refers to residential, while the "1" indicates the limitation of one home or structure. It normally follows that an R2 rating allows for two residential dwellings, typically in the form of a duplex, while an R3 permits multi-family units such as apartments or condominiums. Commercial use of an R1 property is generally not allowed, although home offices or professional businesses such as a law firm or a dentist office are sometimes permitted.Learn More
Cap rate is short for capitalization rate and is a rate of return on real estate that is purchased as investment property. The cap rate is based on the amount of income that an investment property is expected to generate and is used to estimate an investor's return on investment.Full Answer >
A land trust in real estate is a land-ownership agreement whereby a trustee holds recorded legal and equitable title to real estate, but the rights, responsibilities and advantages of ownership remain with the beneficiary, according to First American Title. Land trusts are legally allowed in nine states.Full Answer >
To sell real estate, hire a building inspector, advertise the property, and schedule walkthroughs. Once a buyer has agreed to a price, hire a lawyer to draw up a contract of sale and to work out closing details.Full Answer >
In real estate, a letter of intent refers to an initial agreement that is non-binding for two or more parties entering into a real estate agreement. Letters of intent are common for both leases and purchase of real estate.Full Answer >