Chapter 13 - Real Property Flashcards
Real Property
- Tangible, land and buildings, improvements made on land.
- Includes air space and subsurface rights (oil, water, minerals)
- Includes FIXTURES (originally personal property attached in a permanent manner to real property.
Rights in Real Property
A BUNDLE OF STICKS:
- Sell
- Improve
- Dig
- Possess
- Gift
- Subdivide
Ownership Interests
- FEE SIMPLE ABSOLUTE - you own the real property - owns everything.
- FEE SIMPLE DEFEASIBLE - if the owner is restricted from exercising one or more of the bundle of rights.
- REVERSIONARY INTEREST - If I do the restriction the property goes back to the original owner.
- LIFE ESTATE - I own the property for life and then it goes to someone else when I die.
- REMAINDER INTEREST - where the property on my life estate goes when I die if it doesn’t go to the original owner and his heirs.
Deed
Legal instrument used to transfer ownership of real property.
Easement
A legal right to cross over or use someone else’s property.
Easement of Necessity v. Express Easement
- Express - Agreed upon between owners.
- Necessity - ordered by a judge that you can cross over the property to get to your own.
License
Temporary permission to be on the property.
Profits Interest
If you have the legal right to go onto property and extract or remove something from the property.
Leasehold Estate
- Right to occupy property from the landlord.
- Tenant/ Landlord relationship
Types of Tenancies
- Periodic - a certain period of time
- Tenancy At Will - You have a lease until the landlord says to leave and you can also terminate at anytime.
- Tenancy At Sufferance - You are living on the property without permission at all. Landlord can evict the tenant.
Tenants Rights and Obligations
- Obligation to pay rent.
- Obligation to not cause damage beyond normal wear and tear.
- Right to quiet enjoyment (use, occupy, and enjoy)
- Right against constructive eviction.
Constructive Eviction
When something forces a tenant to leave because the landlord won’t do anything about it.
Landlord’s Rights and Obligations
- IMPLIED WARRANTY OF HABITABILITY - puts obligation on the landlord to make sure all is in a livable condition and provide repairs.
- Obligation of no discrimination.
- Right to receive rent.
Transfer of Interests
- SUBLEASE - transfer a portion of your lease to someone else.
- ASSIGNMENT - transferring everything you have left in your lease.
Zoning
Ordinances that govern where industrial, commercial, and residential areas are allowed within the city.
-CONDITIONAL USE PERMIT - if an owner desires to engage in an activity that would otherwise run afoul of a zoning ordinance, apply for this.
Eminent Domain
Gov’t can take my property no matter what, but they must provide “just compensation.”
- 5th Amendment
Kelo v. City of New London
- City was taking property for public use.
- Kelo sues saying they weren’t taking it for public use.
- S.C. ruled that it was a good thing - public use.
Restrictive Covenants
- Contract where the landowner agrees to do or not to do certain things.
Acquiring Real Property
- Purchase
- Gift
- Inheritance
- ADVERSE POSSESSION - if a person possesses the land in an open, exclusive manner, which is “hostile: to the actual owner of the land. Person must possess land for a certain period of time before the owner comes back…may have to pay property taxes.
Sales/Purchase Contract
- REPC
- Use to sell property
- CONTINGENCIES - I agree to buy as long as…
- ESCROW - a neutral party is handling the money until the deal closes
- TITLE AGENCIES - make sure deeds and everything is in order.
Quiet Claim Deed
- I transfer what I know I own.
- Gives no warranties at all to the grantee.
General Warranty Deed
The grantor warrants that the property is free from any claims to ownership by 3rd parties. He owned it, now you do.
Special Warranty Deed
The grantor warrants only that there are no claims to ownership by 3rd parties that originated or occurred only during the time he owned the property.
Tenancy In Common
- Each tenant (co-owner) has a right to use the entire property.
- If I die, whatever it says in my will is where my property will go.
Joint Tenancy With Right of Survivorship (JTWROS)
- Tenants have a right to use the entire property, subject to any agreement among the joint tenants.
- When a tenant dies, the property he owned automatically is vested in the remaining joint tenant’s rather than heirs.
Community Property
- Married couples are presumed to equally own any property that is acquired during the marriage.
- What I own, my wife owns.
Common Law States
- No community property.
- Divorce law makes up for it.
