Chapter 6 - Real Property Ownership And Interests Flashcards
Fee simple
The most complete form of ownership is the fee simple interest (absolute ownership unencumbered by any other interest or state, subject only to the limitations imposed by the four powers of government:taxation, expropriation, police power and escheat.
Rights included in The bundle of rights
The right to sell an interest, the right to lease an interest, the right to occupy the property, the right to mortgage and interest, right to give an interest away.
Several ways partial interest can be created in real property
Economically, legally, physically, financially.
Leased fee interest
The ownership interest held by the lessor, which includes the right to the contract rent specified in the lease plus the revisionary right when the lease expires.
Leasehold interest
The right held by the lesseeto use and occupy real estate for the stated term and under conditions specified in the lease.
Life estates
Defined as the total rights of use, occupancy, and control of a specified property limited to the lifetime of a designated party. The designated party is generally known as the life tenant is obligated to maintain the property in good condition and pay all applicable taxes during the term of the life estate. Life states can be created in several ways by operation of law, by wills, by deeds of conveyance.
Easement appurtenant
The property that has benefitted by the easement
Dominant tenement
The property whose owner acquires an easement
Servient tenement
The property that is subject to the easement
Easement
An interest in real property that transfers use, but not ownership, I have a portion of an owners property. Access or right-of-way easement may be acquired by a private parties or public utilities
Conservation easement
Restriction that limits the future use of the property to preservation, conservation or wild life habitat
Preservation easement
Restriction that prohibit certain physical changes in a historic property; usually based on the properties condition at the time the easement was acquired or immediately after proposed restoration of the property
Subsurface rights
The rights to the use and profits of the underground portion of it doesn’t need a property; usually refers to the right to extract cool, minerals, oil, gas, or other hydrocarbon substances, may include a right-of-way over doesn’t need portions of the surface
Air rights
The right to undisturbed use in control of designated airspace above a specific land area with instated elevations.
The four powers of government are:
Taxation, expropriation, police power, escheat
Tenancy
The holding of property by any form of title
Joint tenancy
Joint ownership by two or more persons with the right of survivorship i.e. a couple who own a house together
Land trust
Illegal vehicle for partial ownership interest in real property in which independently owned properties are conveyed to a trustee; maybe used to assemble land for development or in some cases to facilitate the assigning a property as collateral for a loan.
Condominium ownership
For Murphy ownership of separate units are portions of multiunit buildings that provides formal filing and recording of a divided interest in real property
Cooperative ownership (co-op)
A form of ownership in which each owner of stock in a cooperative apartment building or housing Corporation receives a proprietary lease on a specific apartment and is obligated to pay a monthly maintenance charge that represents the proportionate share of operating expenses and debt service on the underlying mortgage which is paid by the corporation.
Timesharing
Limited ownership interest in or the rights of use and occupancy of residential apartments or hotel rooms. There are two forms of timesharing: fee timeshares and non-free time shares. Fee timeshares maybe based on timeshare ownership or interval Warner ship. There are three types of non-timeshares a prepaid lease agreement, the vacation license and a club membership
