Chapter 08 - Real Property Rights (P04) Flashcards
Difference between real estate and real property
Real estate is the physical land and improvements. Real property includes the legal rights to own or use the property in addition to the real estate
Characteristics of real estate
Physical, Tangible, Immobile
Rights of an owner whose property borders on a flowing waterway such as a river or stream
riparian rights
Rights of an owner whose property borders on a non-flowing waterway such as an ocean, sea, or lake
Littoral rights
Increase in land area as a result of moving water that deposits soil in other than its original location
Accretion
Loss of soil carried away by water
Erosion
Tangible and intangible items
Something that is tangible has physical existence (such as real estate). Something intangible has no physical existence (it cannot be touched), such as stocks and bonds.
Soil resulting from accretion
Alluvion
Exposure of land that was once covered by water when the level in a lake recedes (or when a river or stream changes course)
Reliction
Something that was once personal property, but has been permanently installed to land or a building in a way that has caused it to be part of the real estate
Fixture (examples: ceiling fan, recessed lighting, garage opener)
Four legal tests used by courts to decide if an item is part of the real estate or personal property
Memory Aid: IRMA
* Intent of the parties
* Relationship of the parties
* Method of Annexation
* Adaptation of the article
Articles of personal property that have been attached to real estate that is rented or leased by a tenant and used in the conduct of business
Trade fixtures (the tenant may remove these fixtures during, or at termination of the lease)
An owner has the right to quiet use and enjoyment of property without disturbance by hostile claimants
Enjoyment
System upon which the real property laws are based in the United States
The allodial system, which allows private citizens the right to own land
Five separate transferable ownership rights, that when taken together make up the “bundle of rights”
- Possession
- Disposition
- Enjoyment
- Exclusion
- Control
Owner’s right to sell the property, give it away, or leave it in a will
Disposition
Owner’s right to determine how the property will be used
Control
Owner’s right to possess or occupy the property
Possession
Owner’s right to prevent others from entering or using their property
Exclusion
Degree, nature, and extent of ownership or ownership rights a person has in real property
Estate - The portion of the bundle of rights the individual has determines the extent or type of estate held
Difference between a freehold estate and a non-freehold estate
A freehold estate involves ownership with no specified time for the rights to expire. A non-freehold (or leasehold) estate is an estate in which the tenant does not have an ownership interest in the property.
Two types of freehold estates
Fee simple and life estate
The type of estate where the owner has a complete bundle of rights
Fee simple; The owner has the rights of:
- Possession
- Disposition
- Enjoyment
- Exclusion
- Control
Fee simple estate for a husband and wife only
Tenancy (or estate) by the entireties; The marriage is the owner of the property in which each spouse has a right of survivorship
An estate held by two or more persons, each with equal rights of use and possession, but with the same or different deeds, at the same or different time, or equal or unequal shares of ownership
Estate (or tenancy) in common; rights are inheritable
Fee simple estate held solely by one person with the entire bundle of rights
Estate in severalty
Fee simple estate shared by two or more persons with equal rights of possession, equal and undivided interests, having acquired their ownership at the same time by the same deed or conveyance
Joint tenancy (or estate) - The four unities must exist:
- Possession
- Interest
- Time
- Title
Memory aid: PITT
Estate that is automatically created when a husband and wife divorce
Tenancy in common; surviving spouse has fee simple ownership
Fee simple estate in which an owner conveys ownership to another, but only for the balance of the lifetime of the party to whom the property is conveyed
Life estate
Party to whom property will be conveyed with a life estate
Life tenant
Estate that gives the grantor of a life estate the right to regain ownership for themselves or their heirs upon the death of the life tenant
Reversion estate; ownership reverts to the grantor or their heirs
Estate that give the grantor of a life estate the right to transfer ownership to another person or entity upon the death of the life tenant
Remainder Estate
Person named by the grantor (creator) of a life estate to inherit the property upon the death of the life tenant
Vested remainderman
Individuals unnamed, such as “future children”, by the grantor (creator) of a life estate to inherit the property upon the death of the life tenant
Contingent remainderman
Four ways that a fee simple estate may be held
- Estate in severalty
- Estate in common
- Joint tenancy
- Tenancy by the entireties
Type of estate in which the tenant has the right of possession and use of the property, but does not have an ownership
Non-Freehold (leasehold)
Three types of non-freehold (leasehold) tenancies (estates)
- Tenancy at will
- Tenancy for years
- Tenancy at sufferance
Non-freehold tenancy that exists when a tenant is in lawful possession of the property with a definite beginning and ending date specified in writing that is signed by the landlord and two witnesses
Tenancy for years;
Termination occurs by mutual agreement, reaching lease end date, or by breach of contract
Non-freehold tenancy that exists when the tenant is in unlawful possession, occupying the property without an agreement
Tenancy at sufferance; Example: When a tenant “holds over” after the expiration of a lease
Non-freehold tenancy that exists when a tenant has lawful possession of the property by agreement with the landlord, but with no definite time for the rights to terminate
Tenancy by will
Can be oral or written, terminated by death of either party, or by either party giving proper legal notice
Legal method of passing property to heirs under probate law when an individual dies intestate
Law of descent and distribution; The court will appoint a personal representative to administer the affairs of the decedent and distribute assets
The most comprehensive and desirable type of estate with rights that are inheritable
Fee simple estate
Provision for a surviving spouse that protects them from an unfair will by entitling them to 30% of decedent’s (deceased spouse) real and personal property owned at the time of death
Elective share; The surviving spouse must file with the courts within four months to receive this right. (Does not apply to tenancy by the entireties or homestead properties)
Term for a deceased individual
Decedent
Someone who died without a will
Intestate
Real property owned separately (in one spouse’s name) prior to marriage or acquired by gift of inheritance during the marriage
Separate property, which can be sold without the signature of the non-owner spouse
Someone who dies with a will
Testate
Automatic statutory protection (exemption) provided for homestead property owners
Homestead property is exempt from the execution and forced sale of the property to satisfy personal judgment liens, such as personal loans or credit card debt, which are held against the head of a household. (Either spouse can claim head of household)
Definition of “homestead property” according to the Florida Constitution
“Any real property owned by the head of a household who resides therein.” (This includes men and women who live alone.)
Property where the owner has a freehold estate (title and deed) with ownership of the airspace within the walls, floor, and ceiling of their individual unit and a fractional share of common areas
Condominium
Document that Florida condominium developers must file to create a condominium association
Declaration
Document protecting individual condominium units from lawsuits that may arise from accidents that occur in common areas
Master insurance policy
Items contained in a condominium master deed
- Name of the association
- Legal description and survey
- unit owner’s membership rights and obligations
- the bylaws
The time period for new and resale condominium buyers to rescind the sales contract after receipt of the condominium documents from the developer
15 days (new) and 3 days (resale)
The term referring to a corporation that buys and owns a multiple-unit property and sells shares of stock to individuals to occupy specified space within the building
Cooperative association
The document that given to an individual who purchases stock in a cooperative association to occupy a specified unit
Proprietary lease
Time period for new and resale co-op buyers to rescind the sales contract after receiving the co-op documents
15 days (new) and 3 days (resale)
Condominium document that conveys the title to the condominium association
Master Deed
“Cooling off” time period for timeshare buyers to cancel the contract without penalty or obligation
10 days, with written notice to the seller (owner-developer)
Homeowners’ association disclosures that must be given to buyers when membership in the HOA is required
- Mandatory Membership
- Restricted covenants
- Failure to pay dues results in possible lien and foreclosure
- Other fees
- HOA right to amend the restricted covenants
Type of property, initially organized as a condominium, where ownership is divided up into (typically) 1-week time periods
Timeshare
