Chapter 49 Flashcards
Real property
comprises land and everything attached to the land
Law relating to real property treats land as
extended down to the center of the earth and also includes things that are permanently attached to it
airspace rights
the rights to land include the airspace above the land to an indefinite height, subject to the rights of aircraft in flight that do not pose a hazard to persons or property on the land.
mineral rights
land also includes rights to minerals, such as oil, coal, or iron ore, except in states where the state retains an interest in certain minerals.
water rights
legal ability to use water flowing across or underneath the property. However, these rights are somewhat restricted; an owner cannot deprive landowners downstream of the use of water by diverting it elsewhere.
fee simple absolute
most complete estate a person may have; grants exclusive rights to ownership and possession of the land and is what most people refer to when they speak of “buying” a house or piece of land. This interest passes to the heirs when the owner dies.
Conditional estate
possess the same interest as the owner for a fee simple absolute, but it is subject to condition. Should a prohibited event occur or a required event fail to occur, the interest will be terminated.
Life estate
granted for the lifetime of an individual. On the death of this lifeholder, the property will go to another party designated by the original grantor.
future interest
present right to property ownership and possession in the future. Such an interest usually exists in conjunction with a life estate or a conditional estate.
leasehold estate
the holder of a leasehold has a possessory but not an ownership interest. This interest is transferred by a contract known as a lease. Both the owner of the property (the lessor, or landlord) and the tenant (the lessee) sign the lease.
because real property consists of land and things permanently attached to it, it follows logically that when the things are removed from real property
they become personal property
Easement
irrevocable right to use part of another’s land for a specific purpose without taking anything from it
profit
the right to go onto someone’s land and take part of the land or a product of it away from the land
Easement or profit is appurtenant
when it runs with the land adjacent to the property on which it exists
Easements or profits are in gross
are not dependent on owning property adjacent to the land on which the nonpossessory interest exists.
if the land that benefits from the easement or profit is sold
the nonposessory interest goes with the property
easement by necessity
easement by implication is said to exist when a piece of property is divided into two parcels in such a way that an already existing obvious and continuous use of the first parcel is necessary for the reasonable enjoyment of the second parcel
freehold estates can be held to provide
absolute total ownership lasting for either the lifetime of the holder or forever
future interest
remaindermen
co-ownership
when more than one person possess the same property rights, co-ownership exists
tenancy in common
- most common
- each owner has a right to
- – sell their interest without consent of others
- – own an unequal share of property
- – have creditor attach their interest
- decendents share is passed to heirs at death
joint tenancy
- like tenancy in common, except shares are owned equally
- upon death, property equally divided among other joint tenants
tenancy in entirety
- coownership by married couple
- can’t sell share without consent of others
- credits of one owner cannot attach the property
- if one owner dies, surviving spouse has full ownership
deed
Instrument or document that conveys an interest in real property between properties
unlike a contract
no consideration is required to effect a transfer of real property.
general warranty feed
most commonly used deed is the general warranty deed which contains certain warranties or promises by the grantor.
quitclaim deed
carries no warranties; the grantor simply conveys whatever interests they hold
negotiation of sales contract
- broker can’t act for both buyer and seller unless both parties consent
- earnest money: showing seriousness of offer
- Failure to accept within the time limit in the offer is considered a rejection
- contact generally requires that the buyer put a deposit in an escrow account maintained by a neutral third party until all the preliminary steps to the transfer can be made.
seller’s duty to disclose
most states require that the seller warn the buyer about any known defects that (1) reasonable buyer could not discover through a thorough examination of the property (2) materially affect the property’s value
if the seller fails to disclose and the buyer discovers the defect only after the sales transaction has been completed, the buyer can sue the seller for fraid or misrepresentation
caveat emptor
let the buyer beware
marketable title
a title free of defects
title examination
a title search may not reveal every single defect in the title, however, so most buyers purchase title insurance or have the seller purchase it for them. Title insurance protects the buyer form losses resulting from a defect in the title
mortgage
in exchange for a loan, the lender receives a security interest in the property
financing
while the buyer makes payments to the mortgagor or lender, the mortgagor or a third party holds title to the property and can sell if the payments are not made
closing
closing is the meeting at which the transfer of title actually takes place and delivery and acceptance occur
adverse possession
person takes ownership of real property by treating it as his/her own without protest or permission from the owner.
the adverse possession must be actual (the person lives on or uses the land as an owner would), open (not secretive) and notorious (without the owner’s permission)
condemnation
legal process by which a transfer of property is made against the protest of the property owner
eminent domain
real property can be taken from an owner by action of government or other public authority for the benefit of the public
when private property is taken by eminent domain..
compensation is made at the fair market value of the property.
government has constitutional right to take private property for the use of the public upon…
providing the owner fair compensation. this right is sometimes exercised on behalf of a private company operating to benefit the public.
restrictive covenants
promises to use or not use their land in particular ways.
most common use of RD is in urban developments sometimes called planned communities.
zoning
allows for the orderly growth and development of a community and protects the health, safety and welfare of its citizens. It commonly restricts the type of use to which land may be put.
variance
an owner who wishes to use land in a manner prohibited by zoning laws may seek permissino, called a variance, from zoning board/planning commission.
zoning is intended to regulate property….
not take it.
