Chapter 2 Flashcards
Accession
The acquisition of a trade fixture by a property owner due to failure to remove by the end of a lease.
Differences between other fixtures: Owned and installed by tenant Removable by tenant prior to lease expiration Not included in the sale or mortgage of real property
Agricultural Fixtures
- An article used in farming operation
- Not considered a trade fixture
- Considered real property of owner
- Not removable by tenant without special written agreement.
Examples: feeding troughs
Uniform Commercial Code (UCC)
Security agreement may be filed by creditor.
-normally included in title search
Financed items remain personal property until paid in full, then becomes real property
Creditor may remove items upon default.
Estates in Land definition & the classifications
Defined as the degree, quantity, nature and extent of interest one has in a real property.
Two broad classifications:
- Non Freehold Estates or leasehold estates
- Freehold Estates
Nonfreehold Estates
Estates involving tenant’s right of possession
Four types of leasehold estates
- Estate for years
- Estate from period to period.
- Estate at will
- Estate at sufferance
Define Freehold Estates
- Estates involving rights of ownership.
- Estates of an indeterminable length of ownership (lifetime or forever).
Types of freehold estates
- fee simple estate
- defeasible fee estate
- Fee simple determinable.
- Fee simple subject to a condition subsequent.
- Pur autre vie estate
- Conventional life estate
Fee simple absolute
- highest form of ownership
- no limitation on the ownership as long as it does not violate:
1. public land use regulations
2. deed restrictions, or
3. The rights of others.
Fee simple defeasible
Ownership may be lost or defeated
Fee simple determinable
requires a certain activity or use to continue
-automatic reversion to grantor or grantor’s heirs.
Fee simple subject to a condition subsequent
the owner must not perform some action.
-grantor has right of reentry by court proceeding.
Conventional Life Estate
- Ownership by life tenant terminates upon the death of the life tenant
- Cannot be willed by life tenant
- Can have successive life estates
Pur Autre Vie
- ownership by life tenant will terminate upon the death of the measuring life.
- the measuring life has no ownership rights.
- Upon death of measuring life, estate will either revert back to original owner (reversionary) or transfer to another named person (Remainderman)
Legal Life Estate
one created by a statute rather than common law.
Homestead laws
protect the family home (or portion thereof) from most debt judgements.
-NC has a limited exemption (35K with certain exceptions).
Marital life estates allowed non-owning spouse a lifetime right to one-third ownership.
- Replaced by intestate succession laws in NC.
- Importance of both signatures on contracts/deeds.
'’Dower’’ or ‘‘curtsey’’
Remainder Interest
Grantor names ‘‘remaindermain’’ that will receive title at the end of life estate
Reversionary Interest
Grantor does not name “remainderman” so title reverts back to grantor or his estate
Doctrine of Merger
If one person acquires all of the present and future interests in real property, those interests combine into a full fee simple absolute.
Ownership of Real Property
-a sole, separate and exclusive possession, dominion, or ownership; one’s own right without a joint interest in any other person.
Concurrent Ownership
- Tenancy in common
- Joint tenancy
- Tenancy by Entirety
Tenancy in Common
- Undivided unity of possession
- Ownership interest does not have to be equal.
- Each owner owns may encumbre or convey his interest.
- Survivorship is not possible.
- Right of partition available
Joint Tenancy
- Undivided unity of possession.
- Ownership interest is usually equal
- North Carolina law change now allows unequal interest.
- All joint tenants must purchase at the same time and all must appear on the deed.
- Survivorship is automatic unless removed.
- in NC, survivorship must be intentionally added by appropriate wording in title.
Tenancy by Entirety
- Undivided unity of possession.
- Owners must be husband and wife when they obtain property.
- Ownership interest must be equal.
- Both must purchaser at the same time and both must appear on the deed.
- Both must sign deed to convey.
- Terminated by death, divorce or mutual agreement of spouses.
- Survivorship is automatic.
Condominium Ownership
Unit owner holds title to airspace.
- may have exclusive rights to a limited common elements like balcony or storage unit.
- Tenancy in common with all unit owners for common areas of complex.
- North Carolina Condominium Act of 1986
North Carolina Condominium Act
Developer must
- file plat map or plan.
- prepare set of bylaws.
- provide public offering statement prior to contracting signing.
- Allow buyer of new unit 7-day rescission period.
- Resales must provide resale certificate.. no rescission period.
Cooperative Ownership
- Title to building and land held by corporation.
- Purchaser buys stock in corporation.
- Proprietary lease of unit.
- Gaining popularity in NC.
Townhouse Ownership
- units usually attached horizontally by party walls.
- sometimes called “row houses”
- individual owners owns land under unit.
- Not covered by North Carolina Condominium Act.
Timeshare ownership
- Right to occupy a unit during five or more separated time periods over at least five years.
- Covered by North Carolina Time Share Act.
- Five-day rescission period on purchases.
- Monies must stay in escrow account 10 days or until contract is rescinded.
- Must be actively licensed to sell time-shares.
- NCREC may fine developer $500 per violation with no maximum fine total.
Planned Unit Development
- Method of real estate development
- Features flexible zoning.
- Homeowners’ association typically has title to common areas and enforces covenants.
Synonyms of personal property
Chattel & personalty
