Chapter 2: Property Ownership and Interests Flashcards
Explain the concept of the bundle of rights; the characteristics of real estate, including the riparian rights and all types of fixtures; and identify terms that may or may not be fixtures by applying the Total Circumstances Test.
accretion
The increase or addition of land by the deposit of sand or soil washed up naturally from a river, lake, or sea.
agricultural fixtures
In North Carolina, a fixture attached to leased property by a tenant farmer is considered the landowner’s real property rather than the tenant’s personal property.
air rights
The right to use the open space above a property, usually allowing the surface to be used for another purpose.
appurtenances
A right, a privilege, or an improvement belonging to, and passing with, the land
avulsion
The sudden tearing away of land, as by earthquake, flood, volcanic action, or the sudden change in the course of a steam. The loss of land may not result in loss of title to the property.
bundle of legal rights
The concept of land ownership that includes ownership of all legal rights to the land (i.e. disposition, exclusion, enjoyment, possession, and control).
common elements
Parts of a prop common use by all of the condominium residents. Each condominium owner has an undivided ownership interest in the common elements.
common interest community (hybrid) ownership
Ownership that contains elements of both ownership in severalty and concurrent ownership.
concurrent ownership
Ownership involving two or more owners.
condominium ownership
The absolute ownership of a unit in a multiunit building based on a legal description of the airspace the unit actually occupies, plus an undivided interest in the ownership of the common elements, which are owned jointly with the other condominium unit owners.
cooperative ownership
A residential multiunit building whose title is held by a trust or corporation that is owned by and operated for the benefit of persons living within the building, who are the beneficial owners of the trust or stockholders of the corporation, each possessing a proprietary lease to a specific apartment in the building.
doctrine of prior appropriation
Followed primarily by Western states, this doctrine contends that water rights are determined by priority of beneficial use. the first person to use water or divert for a beneficial use or purpose can acquire individual rights to the water. In these states, property owners may have land that borders water but no rights to use that water.
emblements
Growing crops, such as grapes and corn, that are produced annually through labor and industry; also called fructus industrials. Usually considered to be personal property.
erosion
The gradual wearing away of land by water, wind, or other natural forces; the diminishing of property by the elements may cause loss of ownership.
fee simple absolute
The maximum possible estate in real property; most complete and absolute ownership; indefinite in duration, freely transferable and inheritable.
fee simple defeasible
An estate in which the holder has a fee simple title that may be terminated upon the occurrence or nonoccurrence of a specified event.
fee simple determinable
An estate in real estate that continue “so long as” a prescribed land use continues. Estate ends automatically upon the termination of the prescribed use; no lawsuit is necessary for reversion.
fee simple with condition subsequent
An estate in real estate that prohibits a specific condition on the property. Grantor has the right to re-enter the property and reclaim ownership through legal proceedings.
fixture
An item of personal property that has been converted to real property by being permanently affixed to the realty.
freehold estates
An estate in land in which ownership is for an indeterminate length of time, in contrast to a lease-hold estate
fructus industriales
Growing crops, such as grapes and corn, that are produced annually through labor and industry; also called emblements. Usually considered to be personal property.
fructus naturales
Plants that do not require annual cultivation and are considered real property.
future interests
A person’s present right to an interest in real property that will not result in possession or enjoyment until sometime in the future, such as a reversion or right of reentry.
homeowners association (HOA)
An organization of property owners in a subdivision, planned community, or condominium that makes and enforces rules for the properties within its jurisdiction.
homestead
Land that is owned and occupier as the family home. In many states, a portion of the area or value of this land is protected for exempt from judgments for debts.
improvement
(1) Any structure, usually privately owned, erect on a site to enhance the value of the property– for example, a fence or a driveway.
(2) A publicly owned structure added to or benefiting land, such as a curb, sidewalk, street, or sewer.
improved land
Land that has a building or buildings on it or land that has been prepared for development, such as with grading, installation of utilities, etc.
improved lot
A lot that certain basic required services necessary to utilize it are available, such as electricity, telephone, street access, or water access.
joint tenancy
A concurrent form of ownership of real estate between two or more parties who have been named in one conveyance as joint tenants. Ownership interest may be unequal. Right of survivorship is not automatic in North Carolina but can be added by an attorney.
lateral support
The support a parcel of land receives from adjacent land; a neighbor’s duty to support adjoining land in its natural state
life estate
An interest in real or personal property that is limited in duration to the lifetime of its owner or some other designated person or persons.
limited common elements
Common elements of a condominium project reserved for the exclusive use of one or more units, such as parking spaces or storage areas.
littoral rights
(1) A landowner’s claim to use water in large navigable lakes and oceans adjacent to the property.
(2) The ownership rights to land bordering these bodies of water up to the average high water mark.
manufactured home
also known as mobile home or house trailer
A dwelling, built under HUD regulations with a permanent chassis.
marital life estate
North Carolina law permits that when someone dies without a will, or dies with a will disinheriting a spouse or leaving him or her very little that the surviving spouse may choose an “elective share” of the estate instead.
modular home
A dwelling consisting of a series of rooms or units built off site according to the North Carolina State Building Code; is considered real property as soon as it is assembled on the land. May be multistoried.
nonfreehold (leasehold) estate
A tenant’s right to occupy real estate during the term of a lease, generally considered a personal property interest
North Carolina Condominium Act of 1986
Specifies that a condominium is created and established when the developer of the property executes and records a declaration of its creation in the county where the property is located. The declaration must include any covenants, conditions, or restrictions on the use of the property. Other requirements include disclosure and other consumer protection measures in connection with new residential condominium unit sales.
North Carolina Uniform Commercial Code (UCC)
A North Carolina statute which may protect the buyers from a seller’s unpaid debts; however, if a homeowner purchases an item on credit and gives the creditor a security agreement, that item remains personal property and may be removed by the creditor in the event of default.
planned unit development (PUD)
A planned combination of diverse land uses, such as housing, recreation, and shopping, in one contained development or subdivision.
probate
A legal process by which a court determines who will inherit a decedent’s property and what the estate’s assets are.
proprietary lease
A lease given by the corporation that owns a cooperative apartment building to the shareholder for the shareholder’s right as a tenant to an individual apartment.
pur autre vie
For the life of another. A life estate pur auto vie is a life estate that is measured by the life of a person other than the grantee.
reliction
Gradual recession of water which uncovers land that usually belongs to the riparian owner.
remainder interest
A future interest in real estate created by the grantor for some third party that will be enjoyed after the termination of a prior estate, such as when an owner conveys a life estate to one party and the remainder to another.
remainderman
One entitled to receive a remainder interest in some estate sometime in the future.
reversionary interest
A future estate that the grantor holds while granting a life estate to another person.
right of survivorship
The surviving owners automatically absorbs the dying owner’s share of the property
riparian rights
An owner’s rights in land that borders on or includes a stream, river, or lake. The rights include access to and use of the water.
severalty
Also called sole ownership
The ownership of real property by only one person or entity;
subjacent support
The support of the surface of land by the land’s subsurface; duty of the owner of subsurface rights to support the surface of the land.
subsurface rights
Ownership rights in a parcel of real estate to the water, minerals, gas, oil, and so forth that lie beneath the surface of the property.
surface rights
Ownership rights in a parcel of real estate that are limited to the surface of the property and do not include the air above it (air rights) or the minerals below the surface (subsurface rights)
tenancy by the entirety
A concurrent form of ownership reserved for property owned by spouses. Right of survivorship is mandatory; making the surviving spouse owner in severalty immediately upon the death of a spouse.
tenancy in common
A concurrent form of ownership in which each owner holds an undivided interest in the real property. Ownership interests can be unequal and the right of survivorship is not allowed.
time-share ownership
Any right to occupy a unit of real property during five or more separated time periods over a period of at least five years.
Total Circumstance Test
A method used by judges to determine whether an item is a fixture or personal property
town house ownership
A hybrid form of ownership where the owner holds fee title to their unit and the ground beneath; horizontal ownership. Frequent use of party walls; row houses. Common areas are usually owned and maintained with other unit owners through an HOA.
trade fixture
An article installed by a tenant under the terms of a lease and removable by the tenant before the lease expires.
trust
A fiduciary agreement whereby property is conveyed to a person or an institution, called a trustee, to be held and administered on behalf of another person called a beneficiary. The one who conveys the trust is called the truster
waste
An improper use or abuse of a property by a possessor who holds less than fee ownership, such as a tenant, life tenant, mortgagor, or vendee. Such waste ordinarily impairs the value of the land or the interest of the person holding the title or the revisionary rights.
leasehold estate
A tenant’s right to occupy real estate during the term of a lease, generally considered a personal property interest; nonfreehold estate.
How can a manufactured home become real property?
Remove the moving hitch, wheels, and axles. Attach the unit to a permanent foundation on land owned by the owner of the manufactured home. File an affidavit attesting to these action with the Dept. of Motor Vehicles
