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.