Chap 2 - Property Ownership + Interest Flashcards
Estate in Sufferance
When a tenant doesn’t leave after lease term is done
Unity in Possession
When all co-owners have the right to access or possess any and all portions of property
Unity of possession is also called
Possession of an undivided interest
Unity of interest
When co-owners have equal percentage of ownership
Unity of title
When co-owners have same type of ownership
Unity of time
When co-owners receive title at the same time on the same document or conveyance
4 types of unity of ownership
Unity of time, Interest, title, and Possession
Right of inheritance
Co-owners share of realty passes to heirs after death
The right of survivorship DOES / DOESN’T supersede will
Does
Right of survivorship
If 1 or more co-owners die, the surviving owners receive their portion of the property
Concurrent ownership
Real property owned by two or more people
Ownership in severity
When title to real property is held under one name or entity
What’s the remedy to an estate in Sufferance
Eviction
In an estate in Sufferance, tenants ARE / AREN’T squatters.
Why/ why not?
Aren’t, they had rights to occupy prior to lease term ending
Typical notice time for termination in an estate at will
30+ days
Is an Estate at Will inheritable? Why?
No
Estate ends once either party dies or terminates estate
Estate at Will
Estate that can be terminated at any time by either party because the duration is undetermined at estate creation
Are estates year to year inheritable?
Yes
Estate from year to year must be how long?
1 year
Estate from year to year
Estate that automatically renews at end of term unless given notice
Estate year to year is also called
Periodic Estate
What happens to a leasehold Estate when lessor or lessee dies?
Estate doesn’t end; heirs to lessor perform lease, heirs to lessee continue to pay
Estate for years ARE / AREN’T inheritable
Are
What does a purchaser of an apartment building have to do in regards to tenants living in building? Why?
Honor their current lease
Tenants show notice of their rights to possess by virtue of possession
Michigan requires lease be in writing off Estate last how long?
More that 1 year
Estate for years also called
Fixed termination
Estate for years
Tenancy for fixed period
What document creates leasehold
Lease or Rental Agreement
What’s the relationship of a leasehold look like?
Lessor to lessee
Leasehold Estate refer to Possession WITH / WITHOUT Ownership
Possession without ownership
Statutory dower rights
Automatic life Estate owned by a surviving spouse in inheritable property owned by the dead spouse DURING marriage
In statutory dower rights, life estates are called?
Consummate Dower
Inchoate Right
Rights to Estate after spouse dies
What’s the estate value of an estate given through inchoate rights?
1/3
When did dower rights end in MI?
2017
Dad grants home to Son in will but doesn’t state who gets it after. The Dad has what type of interest in the estate?
Reversionary
Dad grants home to Son in will but states Red Cross gets it after. Red Cross has what type of interest in the estate?
Remainder interest
Dad grants home to Son in will but doesn’t state the church gets it after the son dies. This is an example of conveyance in _____?
Reminder
Dad grants home to Son in will but doesn’t state who gets it after. This is an example of conveyance in _____?
Reversion
Dad grants home to Son in will but doesn’t state who gets it after. Who gets the property after the son dies?
Heirs of Dad/ Son
Conveyance in Reversion
When conveyance doesn’t specify remainderman upon death of life tenant
Dad grants home to Son in will but states Walmart gets it when son dies. Walmart would be known as?
Remainderman
Conveyance in Remainder
When conveyance is:
grantor ~> X for life ~> Y after X dies
When or where is life Estate ownership started?
Will or at the creation of the estate
Estate Pur Atre Vie
Ownership may also be based off lifetime of a person other than the life tenant
Where is “estate pur atre vie” stated?
In will or given @ creation of life Estate
Life tenant
Owner of life estate
Life estates
Freehold Estate who’s ownership, Possession, and control is such for the life of its owner
Life estates ARE / ARENT inheritable
Aren’t
Fee Simple Defeasible
Freehold that’s destructible
Fee Simple Defeasible also called?
Qualified Fee
Fee Simple Defeasible MUST / MUST NOT be qualified for
Must
Freehold estates ARE / AREN’T inheritable
Are
Fee Simple Absolute
Provides complete ownership and bundle of rights for real property
What are the 2 types of freehold estates?
Fee simple and life
Non-Freehold estates are also called?
Leasehold estates
Nonfreehold estates
Signifies possession with determinable end
Freehold estates
Ownership for a undetermined amount of time
What are the 2 types of estates?
Freehold and Nonfreehold
_____ & _____ are interchangeable when discussing right of possession
Estate and tenancy
Estates in real property DOES / DOESNT imply only possession.
Does
Estates in real property
An interest in property sufficient to give the holder of the estates the right to possession of the property
Trade fixtures DO / DONT transfer at termination of tenancy
Don’t
Trade fixture
Concept that personal property a business installs is presumed to remain personal property
Accession
When personal property becomes real property
An object must first be ______ to become a fixture
Personal property
Fixture
Improvement on and to land
Tenants CAN / CANT reenter property and harvest crops after termination of tenancy. Why?
Can; considered personal property
Emblements
Crops planted annually by labor or industry
Emblements DO / DONT transfer with sale of property
Don’t
Water IS / ISNT severable in Michigan
Isnt
______ includes mineral under surface
Land
Subsurface rights
Right to mine minerals in land
Rights to land DO / DONT transfer with same of property
Do
How is personal property conveyed
Bill of sale
Personal property
tangible property not attached to land
What’s another name for personal property?
Chattel
What’s real property
Land and everything prominently attached
How is Ownership of real property conveyed
Deed
What illustrates that real estate owners sell more than dirt and houses?
Bundle of rights
Tenancy in Common
2+ people holding title to property at the same time
Owners in Tenancy in Common DOES / DOESNT have right of survivorship
Don’t
What happens in Tenancy in Common when one co-owner does?
The heirs of the deceased take over portion
Owners in a Tenancy in Common CAN / CANT partition property
Can
What Unity(s) are required in Tenancy in Common?
Unity of Possession
What unity(s) are required in Joint Tenancy
All 4
Joint Tenancy DOES / DOESNT have right of survivorship
Does
In a joint tenancy, what happens when one owner dies?
Other owner takes portion
Tenancy by the Entirety is limited to ______
Married couples
Tenancy by the Entirety DOES / DOESNT have right of survivorship
Does
What unities are required in Tenancy by the Entirety
All 4 PLUS Marriage
In Tenancy by the Entirety, marriage is also called
Unity of Person
How do you end tenancy by the entirety
Divorce
How many Community Property states are there? What are they?
9; AZ, CA, ID, LA, NV, NM, TX, WA, WI
Community Property
Owners own title to personal and real property
Separate Property in Community Property is?
Property owned prior to marriage, as a gift, or purchased separately
3 Combination forms of ownership
Condo, Coop, & Timeshare
When and where did the first condo statue get enacted in the US
California in 1961
In what act was the first condo statue enacted?
California horizontal property act
In a condo, tenants own _____ + ____
Individual unit and common area
What are the 2 Deeds needed for condos
Master Deed and Unit Deed
Declarations for Condos are also called
Master Deed
Declaration
Legal Description of condo facility
What does the Declaration include?
Right of first refusal clause
What does a condo’s master deed’s right to first refusal do?
Give condo association the first opportunity to purchase individual units if owners want to sell
Individual Condo units marketable titles are evidenced by ____ , ____ , or ______
Unit deed, abstract of title, or title insurance policy
Common Area titles are held as ______ with all other unit owners
Tenancy in Commons
Articles of Association
Establishes an association to provide maintenance or management of common areas
Bylaws
Operative rules for Condo facility and unit owners
Michigan Condo act
Perspective of a new Condo purchase must be given details of about construction and proposed operation procedures
Preliminary reservation of a condo gives purchaser what?
First chance at buying unit but can’t bind parties in reservation
Once a condo purchase agreement is signed, it’s not binding until ______ ?
9 days after developer gives condo documents to purchaser
What documents must a condo association give to a new purchaser before purchase agreement is binding?
1) Master Deed with bylaws and subdivision plans
2) Purchase and Escrow agreements
3) Condo buyer’s handbook
4) Disclosure Statement
If a purchaser of a condo wants to arbitrate against a developer, the developer must ______
Always arbitrate
Condo purchasers, co-owners, and unit occupier can arbitrate if amount is ______
Under $2500
Homeowners Associations are required to have their books audited __________
Annually
Condo Association of co-owners can arbitrate if amount is ________
Under $10k
Homeowners Associations books must be audited annually by independent auditor if revenue is over ________
$20k
Homeowners Association can opt out of audit by _________
Majority vote of members
What can the Homeowners Association do?
Assert, defend, and settle claims on behalf of all owners in connection with common with common elements
Condo owners wanting to lease their unit must give how much notice before lease is signed?
10 Days
In Conversions of buildings from rentals to condos, developers must do what if the building has 6 or more units with tenants?
Offer extended leases
In conversions of buildings from rentals to condos, developers must offer extended leases if the building has _______
6 or more units
In conversions of a building from rentals to condos, what 2 groups are to always be offered extended leases regardless of unit amounts in the buildings?
Disabled
Persons 65+
Site Condo
Condo unit composed of only vacant land with surface improvements or with air space on which a building will be constructed
In Co-ops, buildings, land, all real property rights, and interests are owned by a __________ in ___________
Corporation
In severalty
Ownership of a co-op is _________
Shares of stock in corp PLUS long term lease of apartments
Co-ops can’t be owned as tenancy in common, this means _______
When one unit tenant leaves, the others make up the cost.
Proprietary Leases are usually held as ________
Estate for years and for a long period of time
A proprietary lease is evidence of a tenants right of _________
Occupation
What’s the Right of Refusal clause?
The requirement of selling shareholders to firstly offer share of stock in coop to corporation before selling to an outside buyer
Timesharing
Combines ownership of a condo in fee with the sharing of use of the unit by many others
Timesharing is based off _______
Time intervals
Timesharing based off time intervals, also called
Interval Ownership
Timeshare upkeep, taxes. Etc are the responsibility of ______
All owners
Timeshare upkeep, taxes, etc are prorated between all owners. How’s it divided?
By percentage of time interval use; more time = more responsibility
