Tag: land

Alchian and Property Rights

In a paper entitled Property Rights Paradigm, Armen Alchian suggests ownership is more intertwined than one might think.

There is some ambiguity in the notion of state or private ownership of a resource, because the bundle of property rights associated with a resource is divisible. There can and does exist much confusion about whether a resource or “property” is state or privately owned.
Some rights to some uses of the resource may be state owned and others privately owned. While it is true that the degree of private control is increased when additional rights of use become privately owned, it is somewhat arbitrary to pass judgment on when the conversion to private control can be said to change the ownership of the bundle of rights from public to private. The classification of owners can be carried beyond the important state and private dichotomy. Corporate, school, and church owners of property are also of interest. The structure of rights can have important consequences for the allocation of resources, some of which we now illustrate.

Think of the home you own. The deed at the county recorder’s office says you own it. But the utility company may access the property if it needs to do a repair. The city workers can drive a skid steer into your lot, dig a big hole to check the city water connection, without checking whether you have a graduation party planned for the weekend. Of course, the county can tax you for local services, and if you fail to pay, they can take your property.

So you own your home more in unison with the public than you might have thought.

What about going the other way? Do people pay more for property if it has better access to taxation-supported services? It makes sense that they would. Public groups may have formal or informal claims against your home. There’s a good chance these were sought after when they decided to move. A portion of the price acts as a place maker for value– or in other words, the market prices institutions, too.

Vacant Land Registries

Vacant properties are not popular with municipalities. Cities create a vacant land registry to keep a running log of properties that do not host residents. Here are directions from the town of Brookhaven New York.

There is no longer a requirement to submit a notarized application or payment through the mail – it is all available online. The cost to register is $360 for the year and can be paid through our secure online platform.

Please be advised, that any owner, or agent of an owner acting on behalf of the owner, who fails to register a vacant building or to pay any fees required to be paid pursuant to the provisions of Chapter 87, within 30 days after they become due, shall constitute a violation punishable upon conviction thereof by a fine in the amount of not less than $1,000 nor more than $15,000 for each failure to register, or for each failure to pay a required vacant building registration fee.

The amount of the fine implies that full buildings are of value to the hamlet. Perhaps, in part, this is due to the services a resident will take up once they walk up their sidewalk every day to their front door. Perhaps having people come and go in the neighborhood keeps everyone more secure. Here are the benefits as expressed by the bureaucrats.

Registrant’s point of contact will be notified by phone and/or email of issues that may arise such as:

  • Property maintenance (tall grass, litter on property, etc.)
  • When the Town is notified by law enforcement of unauthorized occupancy
  • If property becomes unsecure.

When properties are registered, the Town will have contact information and will have the opportunity to notify the owner/property manager to correct any issues before taking action. This will save the property owner money.

The city of Miami goes one step further and requires the owners post a no-tresspassing sign and authorize their police force to enter the property should a need for their services become apparent.

Install No Trespassing Sign

Once you’ve submitted your forms, you’ll need to install a No Trespassing sign on the property (this can be any sign purchased any where).

Although it may never cross your mind, your comings and goings every day in your neighborhood and place of business are a public service.