Chapter 13 - Real Property

Question 1

Real Property

Answer 1

1. Tangible, land and buildings, improvements made on land.
2. Includes air space and subsurface rights (oil, water, minerals)
3. Includes FIXTURES (originally personal property attached in a permanent manner to real property.

Question 2

Rights in Real Property

Answer 2

A BUNDLE OF STICKS:

• Sell
• Improve
• Dig
• Possess
• Gift
• Subdivide

Question 3

Ownership Interests

Answer 3

1. FEE SIMPLE ABSOLUTE - you own the real property - owns everything.
2. FEE SIMPLE DEFEASIBLE - if the owner is restricted from exercising one or more of the bundle of rights.
3. REVERSIONARY INTEREST - If I do the restriction the property goes back to the original owner.
4. LIFE ESTATE - I own the property for life and then it goes to someone else when I die.
5. 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.

Question 4

Deed

Answer 4

Legal instrument used to transfer ownership of real property.

Question 5

Easement

Answer 5

A legal right to cross over or use someone else’s property.

Question 6

Easement of Necessity v. Express Easement

Answer 6

• Express - Agreed upon between owners.

- Necessity - ordered by a judge that you can cross over the property to get to your own.

Question 7

License

Answer 7

Temporary permission to be on the property.

Question 8

Profits Interest

Answer 8

If you have the legal right to go onto property and extract or remove something from the property.

Question 9

Leasehold Estate

Answer 9

• Right to occupy property from the landlord.

- Tenant/ Landlord relationship

Question 10

Types of Tenancies

Answer 10

1. Periodic - a certain period of time
2. Tenancy At Will - You have a lease until the landlord says to leave and you can also terminate at anytime.
3. Tenancy At Sufferance - You are living on the property without permission at all. Landlord can evict the tenant.

Question 11

Tenants Rights and Obligations

Answer 11

• 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.

Question 12

Constructive Eviction

Answer 12

When something forces a tenant to leave because the landlord won’t do anything about it.

Question 13

Landlord’s Rights and Obligations

Answer 13

• 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.

Question 14

Transfer of Interests

Answer 14

• SUBLEASE - transfer a portion of your lease to someone else.
• ASSIGNMENT - transferring everything you have left in your lease.

Question 15

Zoning

Answer 15

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.

Question 16

Eminent Domain

Answer 16

Gov’t can take my property no matter what, but they must provide “just compensation.”
- 5th Amendment

Question 17

Kelo v. City of New London

Answer 17

• 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.

Question 18

Restrictive Covenants

Answer 18

• Contract where the landowner agrees to do or not to do certain things.

Question 19

Acquiring Real Property

Answer 19

1. Purchase
2. Gift
3. Inheritance
4. 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.

Question 20

Sales/Purchase Contract

Answer 20

• 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.

Question 21

Quiet Claim Deed

Answer 21

• I transfer what I know I own.

- Gives no warranties at all to the grantee.

Question 22

General Warranty Deed

Answer 22

The grantor warrants that the property is free from any claims to ownership by 3rd parties. He owned it, now you do.

Question 23

Special Warranty Deed

Answer 23

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.

Question 24

Tenancy In Common

Answer 24

• 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.

Question 25

Joint Tenancy With Right of Survivorship (JTWROS)

Answer 25

• 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.

Question 26

Community Property

Answer 26

• Married couples are presumed to equally own any property that is acquired during the marriage.
• What I own, my wife owns.

Question 27

Common Law States

Answer 27

• No community property.

- Divorce law makes up for it.