chapter 2 Flashcards
What are the main forms of property rights?
Property rights include (1) Possessory interests (ownership or leasehold), such as Fee Simple Absolute, Life Estates, and Leasehold Estates, and (2) Nonpossessory interests, such as Easements, Liens, and Restrictive Covenants.
What is a Fee Simple Absolute estate?
A Fee Simple Absolute estate is the most complete form of ownership, providing indefinite duration and full rights to use, sell, or transfer the property.
What is a Fee Simple Conditional estate?
A Fee Simple Conditional estate grants ownership but is subject to conditions. If the conditions are violated, ownership may revert to the previous owner or a designated third party.
What is a Life Estate, and how does it work?
A Life Estate grants ownership for the duration of a person’s life. When the life tenant dies, ownership passes to a designated remainderman or reverts to the original owner.
What is a Leasehold Estate, and what are its main types?
A Leasehold Estate grants tenants rights to use a property for a specified period. Types include (1) Tenancy for Years (fixed-term lease), (2) Periodic Tenancy (month-to-month lease), (3) Tenancy at Will (indefinite lease), and (4) Tenancy at Sufferance (holdover tenant after lease expiration).
Why is a license NOT considered a property right?
A license is a temporary, revocable permission to use land, unlike an easement or lease, which conveys legal rights.
What is an Easement, and what are its types?
An Easement is a right to use another’s land for a specific purpose. Types include (1) Easement Appurtenant (benefits a neighboring property) and (2) Easement in Gross (benefits an individual or entity, such as utility lines).
What is an Easement in Gross, and why is a power line easement an example?
An Easement in Gross benefits a person or company rather than a property. A power line easement allows a utility company to install and maintain power lines without ownership of adjacent land.
What is an Easement Appurtenant, and how does it work?
An Easement Appurtenant benefits one parcel of land (dominant estate) while burdening another (servient estate). It runs with the land, meaning it transfers to new owners.
What rules do courts use to determine if something is a fixture?
Courts consider (1) The Manner of Attachment (permanence), (2) The Adaptation to the Property (custom-built items are fixtures), (3) The Intention of the Parties (buyer-seller agreements), and (4) The Relation of the Parties (tenant-installed items may be trade fixtures).
What is the Law of Capture, and why is it NOT used to determine fixtures?
The Law of Capture applies to natural resources like oil and gas, allowing landowners to extract them from their property. It does not apply to determining if an item is a fixture.
What is a Titled Estate, and what are some examples?
A Titled Estate is a legally recognized ownership interest in real property. Examples include Fee Simple Absolute, Fee Simple Conditional, and Life Estates.
What is Tenancy in Common, and why is it a ‘normal’ co-ownership?
Tenancy in Common is a co-ownership form where each owner has an undivided interest, which can be sold or inherited independently, with no right of survivorship.
What is Joint Tenancy, and how does it differ from Tenancy in Common?
Joint Tenancy includes the Right of Survivorship, meaning ownership automatically transfers to co-owners when one dies, unlike Tenancy in Common.
What is Community Property, and how does it differ from Separate Property?
Community Property is shared equally by spouses for assets acquired during marriage, while Separate Property includes assets owned before marriage or acquired by gift or inheritance.
Why do Property Tax Liens have the highest priority?
Property Tax Liens ensure governments collect property taxes first before other creditors or mortgage lenders.
What is a Restrictive Covenant, and who enforces it?
A Restrictive Covenant is a private agreement limiting land use, enforced by Homeowners’ Associations (HOAs) or individual lot owners but NOT by local governments.
What are the different types of Timeshare Interests?
Timeshare Interests include (1) Fee Simple Ownership (full ownership of a share), (2) Leasehold Estate (rights for a limited period), (3) License Agreements (temporary use), (4) Condominium Ownership, and (5) Tenancy for Years (fixed time share).
What key documents should a Condominium Buyer review?
A Condominium Buyer should review (1) The Condominium Declaration (defines property rights and obligations) and (2) The Bylaws (rules governing the condominium association).
What is Eminent Domain, and how does it affect property owners?
Eminent Domain allows the government to take private property for public use, with just compensation to the owner.
What is Police Power, and how does it impact property rights?
Police Power allows the government to regulate property use for public health, safety, and welfare, including zoning, environmental laws, and building codes.
How has the ‘Bundle of Rights’ decreased in recent decades?
Increased regulations, zoning laws, and environmental protections have restricted property owners’ rights to use land freely.
How do restrictive covenants impact a neighborhood?
Restrictive Covenants maintain property value and aesthetics but can limit homeowner modifications and become outdated.
How does the government regulate Land Use?
The government regulates land use through Zoning Laws, Building Codes, Environmental Regulations, and Eminent Domain.
What are the pros and cons of using Restrictive Covenants vs. Habitat Easements for land preservation?
Restrictive Covenants are private agreements that can weaken over time, whereas Habitat Easements provide stronger, long-term legal protection for environmental purposes.
Why is the traditional Landlord-Tenant relationship outdated?
Modern residential leases require landlords to provide services, unlike historical agrarian leases where landlords had minimal obligations.
What is a Life Estate with a Remainder Interest, and how can it be used for estate planning?
A Life Estate grants ownership for a person’s lifetime, with a Remainder Interest transferring ownership to another party upon death, useful for estate planning without probate.
What options exist for converting an RV camp into a condominium or timeshare?
Options include (1) Selling individual lots as condo units, (2) Creating a timeshare model with fixed- or floating-week usage, and (3) Retaining ownership while leasing spaces long-term.
