Real Estate Unit 3 Rights, Interests & Ownership of Land Flashcards
4 Primary Rights, or bundle of rights, in Real Property
DUPE - Disposition, Use, Possession, and Exclusion
Estate
An interest in the property that is or may become possessory - allows or will allow possession
FEE SIMPLE ABSOLUTE
The highest and most complete in estate land:
Disposition
May sell, pledge, or transfer the land (Dispose)
Use
Use and control our property, but abide by ordinances
Possession
We may occupy proeprty in privacy, enjoy without being disturbed
Exclusion
Control entry onto property - do not disturb
Fee Simple Absolute
- Absolute and complete ownership of property
- Largest Bundle of Rights
- Lasts forever
- Transferable and Inheritable
Life Estate
An ownership of an estate that is limited in duration to the lifetime of the named individual.
- Life Tenant is owner has lifetime use.
- Can sell or lease, Upon death of life tenant, reverts back to Fee
Simple Absolute.
- Transferable but not inferitable
Measuring Life
The person upon whom the Life Estate is based. Their life span.
Leasehold (Less than Freehold)
Non ownership Interest in the property
Tenancy for Years
Tenancy for fixed amount of time.
- Specific end date.
- Death of landlord does not terminate Lease
Tenancy at Will
Tenant has the right to occupy and use landlords property for an indefinite period of time.
- No fixed end date
- AKA Week to Week or Month to month
- Terminated by Sale, Notice, or death of either party
Tenancy of Sufferance
Tenant continues to occupy a property without the landlords concent after lease has expired.
- Payment alone does not renew lease
- IF written concent, becomes Tenancy at Will
Deed Restriction
PRIVATELY created limitations on a deed that binds current and future owners.
EXAM - Restrictive Covenant
HOA rules, developer - to promote conformity of improvements in an entire subdivision including
- Minimum square footage
- Architectural Design
- Height Limitiation
- IS a DEED RESTRICTION
Easements
The right to use the lands of another for specific purpose
EXAM - Easment of Appurtenant
Has a Dominamt and serviant property - ex: Driveway crossing the property in front of it.
Easement in Gross
Not related to a dominant property - EXAMPLE Water Utility Easement for entire neighborhood using setback.
Easement by Necessity
- Created Through Court
- Gives Grantee an easment over Grantor’s land if landlocked
EXAM - Easement by Prescription
- Created Through Court
- Is granted after 20 years of using another’s property for a specific purpose without permission.
(Adverse possession)
Liens
A hold or claim upon the property of another as a security for a debt
Government Lien
for property taxes or special assessments takes priorty over all other liens.
Construction Lien
Right begins at first labor or drop off of materials
- Must be filed within 9p day of completion of work
- Work must be complete
- Terminates 1 year after filing.
Mortgage Lien
Voluntary pledge of land to secure a debt
EXAM - Which of the following is an example of ownership
- Tenancy at Will
- Tenancy At Sufferage
- Tenancy in Common - This is. The rest are not ownership
- Tenancy For years
EXAM - What is not protected by homestead -ie, which is forclosable?
- Gov lien
- credit card
- hospital bill
- judgement
It’s gov lien - you are not protected from those.
Judgement Lien
- Not protected by Homestead
- Court ordered lien against an individual or property - like credit card, personal loan
- not forclosable
NOT protected by Homestead
Anything directly to do with the house:
- Gov liens like property tax
- special assessments
- mortgage
- construction lien
Encroachment - EXAM
Adverse Posession
- Unauthorized posession of another’s land
- EXAM - Overhanging tree, garage over property line
- Disclosed by visual inspection or survey
EXAM - License
Revokable agreement granting privledge to use property.
NOT an estate in land
Not an encumberance
Sole Ownership
Tenancy in severalty (sever, alone) -
Syndication
Joint Venture
Tenancy in Severalty
One Owner
Syndicate
Ownership by 1 entitiy, LLC, company, Corp, or limited partnership
Joint Venture
Syndication for ONE PROJECT that is terminated at the end.
Multiple Ownership
Two or more persons who share ownership wiht undivided interests (property not broken into sections, all share all).
Forms of Multiple Owership
Tenancy in Common
Joint Tenancy
Tenancy by the Entirety
Tenancy In Common
Co-Ownership without right of surviorship
- Default form of ownership in FL
- No right of surviorship -EXAM
- Upon death , interest goes to heirs or devises
Joint Tenancy
Co-Ownership WITH right of survivorship
- Must be specified in deed as joint
- right of survivorship exists
- Upon death, co-owner’s interest goes to the surviving owner
Joint Tenancy 4 Unities that are required - PITT
PITT
- Posession
- Interest
- Title
- Time
Tenancy by the Entireties
- Ownership by Husband and wife ONLY
- Default when Husband and wife purchase together
- Right of survivorship exists
- Neither spouse may transfer or devise their iterest
- Properties purchased separately before marriage stay separate.
HOA
FLORIDA CHAPTER 720 - Homeowners Association Act, establishes developer and association obligations and consumer rights when sellin property subject to a mandatory HOA
HOA Disclosure Requirements
- Seller must provide Buyer with HOA Disclosure Summary that itemizes
- Existence of Restrictive Covenants
- Any Assessments charged by HOA
- HOA right to file a lien on property
Each sales contract for a property located in an HOA must state the buyer’s right to cancel
- within 3 days after receipt of HOA summarey
- Buyer can not waive
Cooperatives
Owned by a corpor ation which in turn leases space to stockholder members
- Buyer gets membership in assoc.. shares of stock (evidence of ownershp), and proprietary lease (right to occupy)
- Ownder- Shareholders pay own mortgage PLUS montly assessments, property taxes, operating and maintenance expenses
-
Cooperative Cancellation Provisiions
- First Sale - 15 biz days right of recision
- Resale - 3 biz days
Condos
Common intrest in a community in which portions of th e real estate designated for separate owndership (units), the remainder of the real estate is deisgnated for common ownership solely by the owners of the units (Known as commmon elements or common areas_) and the undividied interests in the common elements are vested in the unit of the owner.
Condo created by
Recording a Declaration of Condominium to local municipality
Separate Tax and title
- Deed transfer Fee Simple interest in unit plus proportionate undivided interest in common elements
- Unit together with comoon element % = separate parcel
- Taxed, mortgaged, transferred as one parce
- Assoc. maintains insurance on building and common elements.
Selling Condo
Seller must provide:
- Condo Assoc Disclosure addendum to the sales contract (Like HOA summary)
- FAQ info for prospective buyers
- Estimated Operating budget (if new), Or last year’s actual, and if you can get it, next year’s future.
Condo Cancellation Provisions
First Sale - 15 biz days
Resale - 3 biz days
Time Share
- Interval ownership of Condo Unit for intermittant time periods
- Each week represents 1/52 of interet in unit
- Listing or selling timeshare must be done by a liscened reator
- Liscensee contracts must full disclose all aspects of the time share plan.
Encumberance
Any right, claim, or interest in a property held by someone other than the property owner or the one who has the legal right of posession.
EX:
Easement - non financial encumberance
Lien - Fianancial Encumberance
An Easement is an nonfiancial encumberance
Easements may appurtenant or in gross. Created by:
- grant
- express reservation
- necessity
- dedication
- condemnation
- prescription
- or recorded pat
