Chapter 1, Chapter 2 Bundle of rights, appurtenances, water rights Flashcards
the same video
So when we talk about Chapter 2, Chapter 2 is all about the concept of OWNERSHIP of owning property. (40:46)
When you talk about ownership, ownership is NOT one thing. (40:55) It’s actually a bundle of things. (40:47) It’s a bundle of things that have been tied together. (40:58) A bundle of rights that have been tied together. (41:01)
The Bundle of Legal Rights
-Enjoyment
-Exclusion = opposite of possession. To keep people out;to keep people off the property you don’t want there.
-Disposition = right to sell the property, dispose of it.
-Control
-Possession = the right to be here.
There’s 5 of them. (41:03) They all have a little bit of a different meaning. (41:07) For exampe: The right of possession - means the right to be in a property. (41:25) See, we’re possessing this property right now. (41:28) And here’s what’s interesting about that. (41:32)
I, Travis, don’t own this property! (41:34) You don’t own this property. (41:36) But yet, here we are possessing this property. (41:40) How do you think that’s possible? (41:43) If the right of possession belong to the owner, and it does, how is it possible that we could legally be in possession of this property? (41:54) Because possession just means the legal right to occupy the property. (41:57) How is it that I have the legal right to process this property and conduct classes here even though I don’t own this property? We got a lease. (42:09) I, Travis, has a lease. (42:14) So what that lease actually did was to take that right of possession away from the owner and give it to who? The Lessee. which would be me, Travis., in this case. (42:28) I am the Lessee now and I have the right of possession. (42:31) Here’s our bundle of legal rights and there’s 5 of them. (42:41) The right of possession = to be here. (42:55) Disposition - Disposing of the property which is the right to sell the property. For example: Exclusion=Opposite of possession. What do you think the right of exclusion is? To keep people out. (43:12) To keep people you don’t want on the property out. (43:15) So when Bryson purchased his property, he purchased that whole bundle of rights. (43:20) All 5 are those rights, bundled up into one thing. (43:23) Bryson owns the property so he owns that entire legal bundle of rights. (43:33) Not just one piece, but all of them. (43:36) But he decides that he’s going to lease the property out to Alea. The moment they sign that lease, he is transferring the right of possession, the right of exclusion, over to Alea. (43:57) She’s the tenant. (43:59) She has the right to occupy the property and she has the right to tell other people to what? They’re not allowed on the property. (44:04) That bundle has been actually unbundled/broken up. (44:16) Who still owns the property? Bryson does. (44:21) But look at his (Bryson’s) Bundle of rights. (44:24) He had a _____. (44:27) So now he puts the property up for sale. He sells it to Kevin. (44:33) He’s the grantor and Kevin is the grantee. (44:38) He sells the property to Kevin, so he sells him (Kevin) the bundle of rights. (44:41) Notice the bundle is short. (44:45) Who still have the right of possession and the right of exclusion? Alea does (the leasee). (44:53) Apply that to a real world thing. (44:55)
Real world question: When you sell property in NC, that’s occupied by a tenant, does the new owner have to honor that lease? Yes (45:13) (The new owner) absolutely has to! (45:15) Because the owner can’t sell what he doesn’t have. (45:18) And what two rights does the sellor not have? He doesn’t have the right to exclusion or possession. (45:25) So when the (sellor) sells the property, he only sold 3 of the 5 rights that go together. (45:30) Eventually, are the rights going to be reunited, the right or possession and the right of exclusion, are they going to come back? yes, when the lease expires. (45:42) but until that lease expires, Kevin (grantee) is stuck with Alea (the leasee). If they want to be or not, they _____ because he has to understand that she purchase those rights for that amount of time. (45:56) That’s the whole part of the lease. (45:59)
Real world question: We said the right of possession is the right to occupy the property. (46:06) Kevin owns this property now. (46:12) He wants to go in and check on it. (46:16) Travis said something_____(46:21) He has the deed. (46:22) He can go over there and open the door and check on the property, right? Travis said, No he can’t. (46:29) Because the right of possession is be in the property. (46:39) Who has the right of possession? Alea does. (46:43) Alea is the tenant and she has the right of possession. (46:45)
Real world question: Can the landlord enter leased property any time they’d like to? No (46:53) They better not! (46:54) There’s a fancy legal term for that. (46:57) It’s called Breaking and Entering. (46:59) Exactly what it’s called. (47:02) You don’t have the legal right to be there. (47:04)
If Bryson had been smart when he signed that lease, would he have inserted something in the lease getting Alea’s permission to enter the property for things like property inspections? Yes (47:20) But if he didn’t do that, is there any right to enter that property? no (47:25)
Real world question: Tenant in NC has a verbal lease. They don’t have anything in writing. (47:31) Landlord insists on doing a property inspection to inspect the condition of the property and entered some home while the tenant was at work after posting 24 hours notice on the door. (47:42) Is this a legal activity in NC? No Because if they have a verbal lease, they don’t have anything in writing that the tenant ever gave their permission for the landlord to do what? Enter the property. (47:56) See how this (Bundle of rights actually matters? (47:58) These bundles of rights actually matter in the very real world thing. (48:01)
Now what’s going to happen when his lease expires. (48:06) What happens with the right of possession and right of exclusion? It gets reunited back to Kevin and now can he enter the property? yes (48:15) And he can decide if he wants to move in and settle and occupy the property or if he wants to turn around and do what with it? Lease it out to somebody else. (48:24)
A guy asks about the right of enjoyment. Travis said, the right of enjoyment is actually the owners. (48:34) The right of enjoyment is not what you think it is. (48:37) It sounds like, whooo, you can have a good time, right? (48:39) The right of enjoyment in a legal sense is actually the right not to have your ownership challenged. (48:47) It’s called the right of quiet enjoyment. (48:48) In other words, you don’t have to deal with somebody showing up at your door and saying, that property belongs to me. (48:53) That’s the owners right. (48:55)
A guy asks, In the case of an oral lease, isn’t it the word of the owner against the tenant? Travis said, “No” (50:15) Because what the state of NC does is it _____in the absence of a written lease, the state creates one for you. (50:22) And the state is not going to give you access to property like that. (50:25) So, if you want the right to access the property, then you need to have a written lease that specifies that. (50:30)
A girl asks a question, What if it’s an emergency. Travis says, Emergencies are different. (50:35) If there’s an emergency like a life threatening thing or somethikng that threatens the property, generally speaking, the law carves out the ability to enter the property for that kind of a purpose. (5:44) But I will tell you is, Even if you, even in the case of an emergency, if it’s an emergency, what # should you be dialing? 911 (50:52) Don’t try to make a case that you entered that property for emergency purpose if you first haven’t dialed 911 and waited for them to show up to go in the property with you. (51:00)
We’ve had that happen! People say, Well, I only went in there because it was an emergency. (51:04) And you know the first question a ____. (51:07) call 911, it’s an emergency. (51:06) And do you know the first question the _____is going to ask you? What’s the reason of the 911 call? (51:11) What did you call me to ____? (51:13) If it was an emergency, clearly, you should have been in contact with the authorities. (51:16) Well, I fear for the tenants safety? So what are you going in that ________? (51:20) You should have called the police. (51:21) ____See what I mean about that? So, if you’re claiming it’s an emergency, you should be accompanied by some kind of a law enforcement officer. (51:29)
A girl asks a question. Travis says, If the contract is violated by the tenant, does that give the landlord permission to go into the building? (51:43) Travis says, Here’s the better question. (51:44) Who’s to say the tenant has violated the contract? The girl talks again. Travis says he’s going to ask the same question. Who’s to say they have violated the contract because there’s only one say that matters in such a question. (52:00) Where is that say? Court of Law. (52:05) The landlord doesn’t get to decide if the tenant violated the contract. Who has to make that decision? A court of law. (52:13) So, the follow up to your question is, there’s no way for that landlord to unilatterally (which means by themselves) say, you violated the lease, I’m going in. (52:23) They (landlord) has to first go where? The court. (52:26) And your court to agree that the tenant has violated the lease. (52:30) That’s what contracts are for. (52:32) When we get to contract law, one of the things I’m going to stress over and over is that contracts aren’t for us. (52:38) We’re mere mortal people. (52:40) Contracts are for judges and majestrates and courts of law. (52:45) Because they ultimately have the say so over those documents. (52:48) We can’t decide. (52:49) I can look at it and say, Yeah, I believe the tenant is in breach. (52:53) But I have to get a court of law to agree with me before I can take action. (52:56) Because all I’ve done by entering the property is made it so that we both breached the agreement. (53:02) They are (breaching) and than I am (breaching) 53:03) And as the old expression goes, Two wrongs don’t make a right. (53:07)
And that’s really frustrating when you start renting a property out. (53:10) You’re renting a property and they’re not paying the rent. (53:13) And you feel like you need to go in and check on the property. (53:16) And you go, “Hell, they ain’t even paying their rent, I’m going in here. You’ll still go to jail for that. (Be careful. 53:24)
Basic Rights of Real Property Owners - Slide
-Right of disposition - I can sell it
-Right of enjoyment - I can use it without interference from others.
-Right of exclusion-I can tell others to “get out”
-Right of possession-I have the right to be here/occupy the property
-Right of control-I control what the property is used for.
We’ll talked about what each one was. (53:39)
Those are the ones that I thing you might see ______. (53:50) Them others, Disposition, possession, and exclusion. (53:52) So if you want to highlight one ___just be familiar with it. ____level one thing. Just definitional. (53:59)
Appurtenances - Slide
-A right/priviledge/restriction/rule that goes with ownership of land (“runs with the land”)
-The good comes with the bad. Appurtenances can sometimes be beneficial and sometimes be a hindrance.
The fleas come with the dog.
Appurtenance - It’s permanent. It’s attached. It can be a physical attachment or it can be something we can’t see that’s attached. (54:19) So restrictions like zoning restrictions are
Covanents-Are appurtenances -which means they are attached for how long? Forever. (54:34)
This is my favorite expression in the world: The fleas come with the dog. (54:43) An old southern expression for those of you that aren’t from the south. (54:46) Meaning: you don’t get to pick and choose which things you buy. (54:50) If you’re buying the dog, you’re also buying the what? The fleas. (54:55)
Exp: I would love to think I could go out and buy property without the covenants, but I can’t because the covenants are appurtenent (55:04) Which means they’re permanently attached to the property. (55:09)
So when you hear people complain about this idea. (55:17) Who gave them the right to tell me I couldn’t put up a fence in my back yard because they’re bitching because they’re looking at their covenants and the HOA told them that they can’t put a fence up in their back yard. (55:30) And there’s another thing that they say, Who gives them the right to tell me I can’t put a fence up. What is the answer that question? You gave them the right. (55:39) Because that rule was there when you did what? When you bought the property. (55:45) If you didn’t know that was the rule when you bought the property, then it’s your own fault. (55:49) Because that rule was appurtenant. It was there long before you and it’s going to be there long after you. Because that rule is permanently attached to that property. (55:59)
