Chapter 3 Legal Issues Flashcards
Tangible
The major sticks of land, improvements, fixtures, and fruits of soil
Real Property
is the land and improvements, and all legal rights, powers, and privileges, of real estate ownership
Intangible
Rights such as air, water, and mineral rights; easements; leases; mortgages; licenses; and profits
Bundle of rights
The rights of an owner of a freehold estate to possession, enjoyment, control, and disposition of real property
Personal Property
Everything that is not real property is personal property. Personal property is readily moveable
Chattel
Another name for personal property
Subsurface Rights
Includes real property right to the air and area above and below the earth’s surface.
Air rights
Rights to the area above the earth
Water Rights
Include percolating water rights, riparian water rights, and surface water rights.
Riparian Rights
Belong to the owner of property bordering a flowing body of water
Littoral Rights
Apply to the property bordering a stationary body of water, such as a lake or a sea
Fixture
Personal property that attaches permanently to the land or improvements and becomes part of the real property. ITEMS BECOME A FIXTURE IN 1 OF 3 WAYS -ATTACHMENT -ADAPTATION -AGREEMENT
Attachment
Refers to the physical connection of objects to the real estate.
Ex. Lumber to build a structure is a personal property when delivered to the building site
Adaptation
refers to how an object fits the real estate.
Ex. Custom draperies and cabinets that are sized for a certain area.
Agreement
Refers to those items specified by an owner that include part of real estate and those that do not.
Ex. A seller might agree that all of his appliances are fixtures and will sell with the property, except the fridge, which he consider personal property.
Trade fixtures
Items of personal property that a business operator installs in rented building space. These are presumed to remain personal property
Special purpose real estate
A category of real property created as a result of combining the land and its improvements for a single highest and best use.
Illiquid
Difficult to convert readily to cash
Ex. Real Estate
Parcel
A specific portion of land , such as a lot.
Estate
An interest in the property giving the estate holder the right to possession
Freehold Estate
ownership for and undetermined length of time.
Ex. Home ownership
Nonfreehold/ Leasehold Estate
possession with a determinable end.
Ex. Apartment rental
Fee simple/ absolute
The most complete form of ownership and bundle of rights in real property
Defeasible Estate
Destructible or Defeatable
Fee simple on condition
Can continue for an infinite time, as with the fee simple absolute, it can also be defeated and is a defeasible title. A fee simple on condition is recognized in the deed by the words BUT IF.
Ex. Grantor conveys 40 acres to his son; but if the son constructs houses on the land, the sons ownership terminates
Qualified fee simple
inheritable freehold estate in the form of a fee simple estate. It is a defeasible fee, so the grantor can terminate the title. This type of estate is recognized in the deed by the words AS LONG AS.
Ex. Grantor, transfers 10 acres to her daughter as long as the property is used for educational purposes.
Life Estate
owernership, possession, and control for someone’s lifetime. Ownership, possession and control are dependent upon living and are lost at death.
Estate for life/ Ordinary life estate
a life estate created for the duration of the life tenant’s own life.
Ex. Tonya conveys 40 acres to William for William’s Life.
Estate pur autre vie (FOR THE LIFE OF ANOTHER)
When the life estate is for the life of a person other than the life tenant.
Ex. Rebecca conveys 40 acres to Morris until the death of Nancy.
Remainder Interest
A fee simple present interest.
Remaindermen
A person who has a future interest in a life estate
Life estate in reversion
A form of life estate that goes back to the creator of the estate in a fee simple upon termination.
Reversionary Interest
possession of the property goes back to the owner at the end of the life estate.
Dower/Curtesy
Automatic life estates owned by a surviving spouse in inheritable property owned by the decreased spouse alone during the marriage.
Homestead Life estate
available only on the family home. not on all the inheritable property
Act of Waste
The life tenant abuses or misuses the property
Vesting options
Buyers have many options for acquiring the property
Ownership in serveralty
Title to real property is in the name of only one person or entity
Co-ownership
ownership of real property at the same time by two or more people
Right of survivorship
when one (or more) of the co-owners dies, the surviving co-owners automatically receive the interest of the decreased co-owner.
Right of survivorship defeats passing of the title by will.
Unity of time
exists when co-owners receive their title at the same time in the same conveyance.
Unity of title
exists when the co-owners have the same type of ownership, such as a life estate, fee simple, or fee simple on condition
Unity of Interest
exists when all co-owners have the same percentage of ownership
Unity of Possession
exist when all co-owners have the right to possess or access all portions of the property owned, without physical division
Undivided Interest
Ownership of fractional parts not physically divided
Partitioned
a tenant in common may bring legal action to have the property . This allows each tenant to have a specific and divided portion of the property exclusively.
Joint Tenancy
form of co-ownership requires all four unities of time, title, interest, and possession. Joint tenants must :
Have the same interest in the property
Receive their title at the same time from the same source
Have the same percentage of ownership
Have the right to undivided possession in the property
Joint Tenancy is the right of survivorship. When one joint tenant dies, his share automatically goes to the other surviving joint tenants equally instead of passing to the heirs of the deceased.
If a Joint tenant, before death, sells his share of ownership, the person purchasing this share will not become a joint tenant with the other.
The unity of time is destroyed.
Tenancy by the entirety
limited to husband and wife. To receive as a tenancy by the entirerty, they must have a legal marriage when they receive title to the property.
Trustee
One who holds title to property for the benefit of another
Bebeficiary
one who receives benefits or gifts from the acts of others given by
Ex. A will or trust
Trustor
Grantor or settlor conveys title to a trustee
Partnership
is a form of business organization owned by two or more partners.
Uniform partnership Act
A partnership may hold title to real property in the partnership’s name as a tenancy in partnership. Partners may hold title to real property in the names of the individual partners. In NY, a partnership doing business under an assumed name must file with the county clerk where it does business.
General Partnership
partners are personally liable for partnership debts exceeding partnership assets. General partners are jointly (together) and severally (seperatly) liable for these debts.
Limited Partnership
consists of one or more general partners who are jointly and severally liable.
