Chapter 4 Flashcards
Estates, Landlord & Tenant Rights, Torts, Eviction Process, Types of Ownership
The degree, quantity, nature, and extent of interest that a person has in real and personal property (includes everything one owns).
Estate
A right of title to land.
Freehold Estate
Absolute ownership of real property; a person has this type of estate where the person is entitled to the entire property with unconditional power of disposition during the person’s life and descending to the person’s heirs or distributees.
Fee Simple Estate
An inheritable estate in land providing the greatest interest of any form of title
Fee Simple Absolute
An estate that will end automatically when the stated event or condition occurs. The interest will revert to the grantor or the heirs of the grantor.
Fee Simple Determinable
A defeasible fee (title), recognizable by words ‘but if’.
Fee Simple on Condition
A freehold estate created for the duration of the life or lives of certain named persons; a non-inheritable estate.
Life Estate
A person who conveys title to real property by deed.
Grantor
A person who receives title to real property by deed
Grantee
Non-freehold estate; of limited duration, providing the right of possession and control but not title.
Leasehold Estate
Property or estate ownership that reverts back to the grantor after a temporary ownership period.
Estate in Reversion
An estate which vests after the termination of the prior estate.
Estate in Remainder
What you own: Real and Personal Property, Bank Accounts, Furniture
Estate
Two types of Estates
Freehold Estate and Non-Freehold Estate or Leasehold Estate
What is the difference between a Freehold Estate and a Non-Freehold or Leasehold Estate
A matter of duration -
A Freehold Estate is defined as indeterminable duration: The estate passes on to your heirs or devisees.
Non-Freehold or Leasehold Estate is determinable.
What is a Bequest
When you leave your personal property through your WILL.
What are Legagatees?
The individuals that received your personal property through a Will
What are the two types of Freehold Estates?
Fee Simple and Life Estate
What is Fee Simple
If you own in Fee Simple you have the most complete lease restrictive right with that property
What are the different types of Fee Simple Ownership:
Fee Simple Absolute: FSA - No conditions No Qualifications
Fee Simple Determinable - Determined by an event - it is Durationable if a grantor (title to real property) and says - to my …. as long as she stays married to Jim. Reverter applies if the event happens
Fee Simple Upon Condition Subsequent - to …. on condition that …. (the grapes from the property makes wine)…. Grantor has the right to re-enter if the condition is not upheld. The Grantor would have to seek to execute.
Life Estate
Ownership measured by the life of the individual and is measured by the Grantee’s life
Grantor
A person who conveys title to real property by deed.
Life Tenant (Grantee)
A person receiving a life estate
Remainderman
A person who has a future interest in a life estate. Specified by a grantor.
Estate Remainder
After the specified person passes away, the property may be transferred to the remainderman
Estate for Years
a leasehold estate for any specific period of time. An estate for years is not automatically renewed.
Periodic Tenancy
A Lease that automatically renews for successive periods unless terminated by either party; also called estate from year to year. (Rent for successive periods for the same time frame. Typically paid by the month)
Estate at Will
A leasehold estate that may be terminated at the desire of either party. (Example: Let a friend crash out at your condo on your couch. Stay as long as you need Bro. No rent, no lease, no date. In Cali you still have to give notice to you friend to get off the couch)
Estate at Sufferance
Continuing to occupy a property after lawful authorization has expired; a form of the leasehold estate. (Lease was a year and you paid the rent after the lease was up and they cash the check.)
Leasehold Estates
Estate for Years
Periodic Tenancy
Estate at Will
Estate at Sufferance
Lease
A contract whereby, for a consideration, usually termed rent, one who is entities to the possession of real property transfers such rights to another for a particular term.
Parties to a Lease
Lessor or Landlord
Lessee or Tenant
What is a Lessor
A Landlord - One who rents property to another under a lease
What is a Lessee
A Tenant - A person to whom property is rented under a lease
A Lease offers
Right to quiet enjoyment
Right to possess
In a Gross Lease, what does a Lessor Pay?
A lease in which the lessor pays all costs of operating and maintaining the property and real property taxes Taxes Insurance Maintenance Mortgage
In a Gross Lease, what does a Lessee Pay
Rent
What is Percentage Lease?
A lease in which the rental amount is a combination of fixed about plus a percentage of the lessee’s gross sales. This is commonly used for Retail Space.
It allows a tenant to pay less in rent upfront, which gives the store more time to become profitable. The landlord benefits int he long run by making a percentage of the tenant’s gross sales.
What is a Net Lease
A lease in which the lessee pays a fixed amount of rent plus the costs of operating the property. Net leases are common used in office buildings.
Covenants
Agreements written into deeds and other instruments promising performance or nonperformance of certain acts, or stipulating certain uses or non-uses of the property.
Constructive Evictions
Any disturbance of the tenant’s possession of the leased premises by the landlord whereby the premises are rendered unfit or unsuitable for the purpose for which they were leased.
The requirement of the Landlord
Deliver to the tenant actual and legal possession and use of the property.
Deliver a habitable dwelling - must be fit for human inhabitance
Rights of Tenants
Right to possess and use a dwelling
Right to quiet enjoyment - freedom of landlords interference
A habitable dwelling: Heat, broken windows, exposed from the external environment
Obligation of Tennant
Pay Rent - regardless if there is a written legal agreement or not.
Abide by lease terms - the covenant
Breach of the Lease - Failure to Pay the Rent or any of the covenant
Landlord Breach
Breach of Quiet Enjoyment - landlord interferes
Not habitable - Slum lord
Tort Liability
A legal obligation of one party to a victim as a result of a civil wrong or injury.
Tort Liability as a Tennant
Anything that happens within the property that he/she is leasing/renting, invited guests by the tenant (these are called a licensee)
Eviction
A legal proceeding by a lessor landlord to recover possession of real property.
What is the Eviction Process
Rent is due - no rent
The landlord must serve a 3-day notice to pay or quit
The landlord has to post it on the door and mail
The landlord files an unlawful detainer action is a civil lawsuit filed in superior court in the county in which the property is location
suing to regain the posses and use of the property in question and any monetary damages that were imposed, and expenses the landlord incurred
Writ of Possession is then granted by the court
Writ of Possession goes to the Sheriff and the Sheriff will then use reasonable force to remove the tenants or tenants to remove them and their possessions.
What are the Types of Ownership
Joint Tenancy - 2 or more people Owned
Tenancy in Common
Condominium
Ownership in Severalty - Sole Ownership
Joint Tenancy
Undivided ownership of a property interest by two or more persons each of whom has a right to an equal share in the interest and a right of survivorship. ie the right to share equally with other surviving joint tenants in the interest of a deceased joint tenant. No Probate
Tenancy in Common
An Ownership of realty by two or more persons, each of whom has an undivided interest, without the “right of survivorship”.
(could be businesses)
Condominium
Five or more units where in the owner has a fee simple interest in the air space, or four walls in which they live or occupy, plus common areas which are owned as a tenancy in common.
Ownership in Severalty
Title to real property held in the name of only one person.
Co-Ownership is:
Joint Tenancy
Tenancy in Common
Condominium
ROS stands for?
Right of Survivorship
What are the 4 Unties?
Time
Title
Interest
Possession
Unity of Time means?
All Joint Tenants must receive tile at the same time
United of Tile means?
All Joint tenants must receive ownership interest - title, on the same instrument (a document that does something a deed)
Unity of Interest means?
All joint tenants must have an equal interest
Unity of Possession means?
All tenants (owner) equal rights of possession and use.
What is the difference between Joint Tenancy and Tenancy in Common?
Joint Tenancy are natural people vs Tenancy in Common can be companies
No right of survivorship with Tenancy in Common
Partition Action
The result of co-ownership arrangement is destroyed with a Joint Tenancy or Tenancy in Common
Then nobody gets the property - the court typically orders for the property to be sold and then sold amongst the owners
Community Property
Community Property - property that is acquired during the course of marriage.
If your family gifts you property - you do not have to share it with your spouse.
If you inherit you do not have to share with your spouse,
The characteristics can change if you receive property, the cash flow would be considered community property.
Separate Property -
Separate Property - property acquired before or after marriage
Common Interest Ownerships
Condominiums
Stock Co-Op - purchase shares in a corporation + sign a proprietary lease
