Real Estate Course- National Ownership Unit 1
Terms
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- Real Estate
- Land plus appurtenances
- Appurtenance
- Anything that is permanently attached to the land either natural or manmade.
- Real Property
- Land + Appurtenances + The Bundle of Rights
- Personal Property
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Readily moveable from one location to another.
Sometimes referred to as Chattels - What is opposite of real property
- Personal Property
- Fixture
- Something which once was personal, but has been installed. Therfore, it becomes real property
- Tests for determining if something is a FIXTURE
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M ethod of Annexation
A daptability
I ntent of the parties
D amage -
decision of agreement
between the parties - Emblements or fructus industriales
- Annual crops such as wheat, corn, and vegetables. These are considered personal property
- Fructus naturales
- Perennial trees, perennial bushes, and grasses that do not require annual cultivation. These are real property.
- ANNEXATION
- Changes personal property to real property.
- SEVERANCE
- Changes real property to personal property.
- Trade fuxture
- The property of a tenant that is installed, and is necessary for their trade or business.
- Three physical characteristics of land
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1.IMMOBILITY
2.INDESTRUCTIBLE
3.NONHOMOGENEOUS (Uniqueness) - Five ECONOMIC characteristics of land
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D emand
U tility or usefulness
S carcity
T ransferability
S itus - Livery of Seisin
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Sell the entire bundle of rights.
"I own it and I have the right to sell it" - Estates in Land
- The degree of ownership one holds in the land
- Feudal system
- All land was owned by the king or the government
- Allodial System
- Individuals are entitled to own property without proprietary control or the King/Government. US is under this System
- Four categories of GOVERNMENT INTERFERENCE IN PRIVATE OWNERSHIP in the United States.
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PETE
Police Power
Eminant Domain
Taxation
Escheat - Police Power
- The right of the government to enact laws and enforce them
- Eminant domain
- The RIGHT of the government to acquire private property for public use. (Note that it does not have to be for the public good, but for the public use.)
- Condemnation
- The process that the government utilizes to exercise its right of eminent domain.
- Taxation
- The right to government has to collect funds to pay for public services.
- Two types of taxation:
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Special Assessment and
Ad Valorem (or general real estate taxes). These taxes will take priority in the sale of a home and need not be recorded to be valid - Escheat
- The property revert back to the state when an owner dies without a will and without heirs.
- Freehold Estates
- Estates of indeterminable duration. They last at least a lifetime or greater, because they can be willed to heirs.
- Fee Simple Estates
- The highest types of interest in real estate law - complete ownership. Also known as estate of inheritance.
- Fee Simple Absolute
- No limitations on real estate except the government rights.
- Fee Simple Defeasible
- Sets limitations of things that can't be done. When this is broken, the property reverts back to the original owner.
- Fee Simple Determinable
- Interest ends automatically upon the owner's failure to comply with that limitation set by the original owner. When this is broken, the property reverts back to the original owner.
- Life Estate
- An estate in land limited to the life of the owner or the life of someone else.
- Conventional Life Estate
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a. Ordinary with reversion or remainder
b. Pur autre Vie (Based on the life of another) - Reversion:
- when the holder of a life estate dies, the real estate reverts back to the original owner.
- Remainder:
- when the holder of a life estate dies, the real estate passes to a third party, called the remainder man.
- Pur autre Vie
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(Based on the life of another)
rather than the estate being based on the holder of the life estate's life, it is based on the of another person. Can have a reversion or a remainder just like an ordinary life estate. - Legal Life Estates
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a. Dower/Curtesy - Spousal life estates.
b. Homestead. - Dower/Curtesy
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Spousal life estates.
Dower: the wife's rights in her husband's estate at the time of his death.
Curtesy: is a husband's right in his wife's estate at the time of her death. - Homestead
- The home is exempt from certain kinds of judgments while the family occupies the property as their residence.
- Encumbrance
- anything that affects the title to real estate. It is a right or an interest held by a party who is not the fee owner of the real estate.
- 3 Non-physical encumbrances:
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* Liens
* Restrictions
* Licenses - Easement
- the right to use the land of another for a particular purpose.
- 4 main types of easements:
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LPGA
L- Easement by Operation of Law or easement by necessity
P- Prescriptive Easement
G- Easement in Gross
A- Appurtenant Easement - Dominant Tenement
- The person who benefits or uses the easement
- Servient Tenement
- The person that is subject to the easement
- Encroachment
- Illegal use of someone else's land (fence placed outside the property lines, etc.)
- Riparian owner
- The body of water is in movement, as a stream or river, the abutting owner is called a rparian owner.
- Littoral owner
- The water is not flowing, as in the case of a pond, lake or ocean, the abutting owner is called a littoral owner.
- Accretion
- The increase of land created by deposits of soil by the natural action of the water.
- Avulsion
- The loss of land as a result of its being washed away by a sudden or violent action of nature.
- Erosion
- The decrease of land by the gradual wearing away that is caused by flowing water.
- Reliction
- Increase in land due to the receding of water from the shore.
- Alluvial plain or alluvion
- Alluvial plain is a delta area where soil deposits from river; alluvion is the accumulation of soil, rock and other matter from the movement of water.
- Air rights:
- Air rights may be sold
- Horizontal Property Act
- Describes condo air space ownership
- Syndicate
- Many investors share the risk of the investment.
- Partnership
- business organization where 2 or more persons as co-owners and share in the business's profits and losses.
- Types of Partnerships
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* General Partnership: full liability for the debts, losses, and obligations
* Limited Partnership: are liable only to the extent of their investment and cannot be held liable for any debts beyond their investment - Alienation
- The right and evidence of ownership of the land
- A Deed
- A document that transfers ownership from grantor to grantee.
- Basic types of deeds
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1. General Warranty Deed
2. Special Warranty Deed
3. Bargain and Sale Deed
4. Quit Claim - Requirements for a valid deed
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Premise
Habendum
Testimonium - General Warranty Deed
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Contains each of the 5 "covenants" or promises of the seller:
1. Covenant of Seisin
2. Covenant of Quiet Enjoyment
3. Covenant Against Encumbrances
4. Covenant of Further Assurance
5. Covenant of a Warranty Forever - Special Warranty Deed
- Seller is only making promises during the time period in which he/she owned the property.
- Bargain and Sale Deed
- "I own it... but that's about it! I'm ot going to make any promises."
- Quitclaim Deed
- Offers least amount of protedtion for the buyer. No promises.
- Court Ordered Deeds
- A deed can convey(transfer)title. The difference in the deeds is in the promises a seller makes should there be a problem.
- Parol Evidence Rule
- States that oral agreements, promises and unducements made by the parties prior into entering into a written contract may not be used in court to dispute or contradict some written provision expressed in the contract.
- Statute of Frauds
- A state law that requires certain contracts to be in writing and signed by the party to be charged (or held) to the agreement in order to be legally enforceable in a court of law.
- Principal of Laches
- Legal doctrine used to bar a claim asserted after the passing of a statutory period of time.
- Constructive notice (recordint)
- is information that can be obtained from the public records at the courthuse.
- Actual Notice
- is legally known, but not recorded.
- Caveat Emptor
- let the "buyer beware"
- Notarized Deeds
- If you want to record a deed, it must be notarized. The person must go before the notary public and ACKNOWLEDGE that the signing of the deed was a voluntary act.
- Attestation
- The signature of the notary