Chapter 2. Real Property Ownership/ Interest Flashcards
Estate for Years
A lease with a definite duration
Estate in Land
The degree, quality, nature, and extent of a person’s interest in land or other property.
Tenancy at Will
A leasehold estate for an uncertain duration
Appurtenances
Rights, benefits, or attachments that transfer with real property
Tangible (touchable)
Property includes physical improvements on the property; includes fixtures, such as lighting, heating, and plumbing equipment.
Intangible (cannot touch)
Property that includes rights and privileges that belong to and pass in the deed from the grantor to the grantee.
Interest in land
Legal privilege in the property
ex. Easement
Three Basic Types of ownership in Real Estate
Severalty
Co-Ownership
Trust
Joint Tenancy
Concurrent form of ownership characterized by right of survivorship. Each joint tenant has the right to sell, mortgage, or lease an interest without the consent of the other owners.
Tenancy in Common
If one joint tenant sells his or her property, the new owner would be a tenant in common with the other joint tenants.
Community Property
The laws are based on the idea that a wife and husband are equal partners in a marriage. Any property acquired during the marriage is deemed to have been obtained by mutual effort.
Separate Property
Property owned by either spouse before marriage but also property inherited during marriage or received by gift.
Time-share (Interval Ownership)
The buyer receives a deed for the property that allows the possession for an allotted time each year.
Planned Unit Development
Designed for a high density of dwellings and a maximum use of open space.
Lease
An agreement that transfers exclusive possession and use of real estate from the landlord/owner/lessor to the tenant/lessee
Covenant of quiet enjoyment
Requires that the lessor will not enter the property without notice, unless it is an emergancy.
Warranty of habitability
Requires the landlord to keep the property in good condition by maintaining the common areas, equipment, etc.
Reversionary Right
The owners right to retake the property on the expiration of the terms of the lease.
Nondisturbance clause
States that the mortgagee agrees not to terminate the lease in the event of foreclosure. However the tenant must be in compliance with the lease terms.
Lease Option
The tenant has the option to purchase the property at a specified price within a certain time.
Lease Purchase
The tenant agrees to purchase the property at a specified price within a certain period, which is usually at the end of the lease.
Gross (straight) lease
The tenant pays a fixed rental amount, and the owner pays all the ownership expenses for the property.
Net Lease
The tenant agrees to pay ownership expenses, such as utilities, property taxes, and special assignements.
Double-net Lease= Tenant pays for insurance as well
Triple-net Lease= Tenant pays for some repair and maintance.
Percentage Lease
Tenant agrees to pay a fixed base rental fee plus a percentage of the gross income in excess of a predetermined minimum amount of sales.
Sale- Leaseback
The grantor sells the property to the grantee, and then leases it back.
Graduated Lease
A periodic step-up of rent payments.
Index Lease
The rent is tied to an index outside the control of both the landlord and the tenant.
Lien
A Claim against real estate to satisfy the payment of money.
Torrens System
A method of legal restriction of land where title does not transfer and encumbrances are not effective against the property until the proper documents are registered at the torrens office.
Easement
The right to use the land of another, but it does not include the right of possession.
Appurtenant Easement
Benefits a parcel of real estate
Involves two tracts of land
Dominant estate= benefts
Servant estate = burdened
Easement in Gross
Benefits a person or legal entitiy
Involves one tract of land
ex.) billboard
Easement by Necessity
Created when the buyer purchases a property that has been landlocked by the seller.
Easement by Prescription
Created when a claimant uses a property for a statutory period of time.
License
Is the personal privilege to enter the land of another and use it for a specific reason.
Profit a prendre
the right to take crops, soil (silt), or profit from the land of another.
Land Use
Regulated by dividing the land into residential, commercial, industrail, and agricultural use districts
Buffer Zone
Separates two different use districts.
Bulk Zoning
Controls density or the ratio of land area to structure area.
Aesthetic Zoning
Requires that owners conform to certain types of architectural styles.
Incentive zoning
Provides a reward or incentive for a builder to meet the established objective of development.
Nonconforming Property
May regulate air, noise, and water pollution in industrial properties.
Variance
May be granted in cases where the zoning creates an unnecessary hardship on the owner, but the variance must not be detrimental to zoning.
Conditional Use Permit
When a special-purpose property that benefits the public (hospital, library) is approved a conditional use permit is granted.
Spot Zoning
Change of zoning for a particular spot or lot and is generally not permitted.
