Real Property vs Personal Property Flashcards
appurtenance
used to describe rights, privileges,
or improvements that belong to and pass with the land
Improvements
are man’s additions to the
land, such as buildings and landscaping
Personal property, chattel, personality
is a right or interest in something of a temporary or movable nature and includes
anything not classed as real property
Bill of Sale
Ownership is transferred by a
A fixture
is an item that was personal property; however, it has been attached in such a way that it
has become real property; The word “installed” often indicates a permanent attachment. A fixture is
never freestanding.
annexation.
the process of attaching a fixture
severance
the process of real property becoming personal
Trade Fixtures
s are fixtures installed by a tenant in order to carry out a business, and they may be
removed from leased property prior to the termination of the lease. If trade fixtures are not removed
prior to the termination of the lease, they become real property and pass to the landlord
Emblements
are crops grown annually. Even though they are attached to the ground, they are
considered the personal property of the farmer who cultivated them. They are not automatically part
of the sale of a farm or ranch. Ownership can be transferred with a bill of sale, or the cultivating
farmer may make arrangements to return to the property and harvest them one time after the sale
closes and the crops are ready for harvest.
Nonhomogeneity
no two pieces are exactly alike. A more current term is uniqueness.
Each piece of land is unique.
Immobility
land cannot be moved - a person must go to the land.
Indestructibility
durability - it will always be there.
Scarcity
in short supply where demand is great
Modification
land use and value are greatly influenced by improvements made by man to
land and to surrounding parcels of land.
Fixity
land and buildings and other improvements to land are considered fixed or permanent investments – they are not liquid assets.
Situs
- location preference, or location from an economic rather than a geographic standpoint. (This can change over time as peop
Police Power
is the power given to a municipality to regulate and control the character and
use of property for the health, safety, and general welfare of the public (Zoning is the most common example of police power. Zoning regulations are local laws to
control land use. For example, R-1 zoning means residential, single-family only)
A change in zoning may result in a _______.
A change in zoning may result in a non-conforming use. This use was permissible under
former rules, but new rules prohibit it. A non-conforming use is allowed to continue as it is
considered grandfathered. The non-conforming use is automatic; no hearing or application
process is required. A non-conforming use cannot be altered or expanded without permission, but it can be sold to a party who wishes to continue the existing use. If the property is
destroyed, the non-conforming use may not be rebuilt without permission. (Note – there is
no violation of zoning here.)
If your property violates zoning, you may request a ______
If your property violates zoning, you may request a variance. A variance may also be
requested prior to construction. Adding on to the front of a building would usually require
a variance. The process to obtain a variance is to apply to the zoning committee. A hearing
will be scheduled, and all neighborhood property owners will be invited to the hearing to
voice any objections they might have to the variance. A variance goes with the property
when the property is sold.
A conditional use or special use
can be granted by a zoning committee or deed restrictions
(HOA). This use would benefit the neighborhood, like a school within a residential neighborhood. Another conditional use is a PUD – a planned unit development. A PUD zone
allows for a higher population density with houses clustered together, leaving more green
area open for parks and recreation. A non-profit community association is organized to
provide maintenance of the common areas. An extra tax may apply to property owners in a
PUD
A buffer zone
is an area of land separating one land use from another, such as residential
from commercial. The buffer zone is located between incompatible uses. The buffer zone is
a transitional use. Example: single family, apartments, retail. The apartments are the buffer
zone.
Eminent Domain
n is the right of the government to take private property for public use
through the action of condemnation. This is the only time the government must compensate property owners.
Inverse
condemnation
When an individual forces the government to buy his or her property
Taxation
Property taxes are the highest priority lien on real property. Property taxes are
ad valorem taxes, or according to value. Unpaid taxes create an automatic lien on property.
At foreclosure, property taxes are always paid first
Escheat
Property reverts to the state when someone dies, leaving no will and no heirs
or kindred. Escheat can also be used if property is abandoned. The purpose of escheat is to
ensure that no land remains unowned
. CC&R’s are commonly referred to as
deed restrictions or deed covenants.
Deed Restrictions
are imposed to control land use, development, and methods, and materials for
construction. Style and appearance requirements can also be enforced (garages facing the rear of the
property etc.). They are found in a recorded document called a Declaration of Restrictions. They are
imposed by the grantor. Violation can result in civil court action brought by other property owners
who are bound by the same deed restrictions. The court will issue an injunction to enforce the
restrictions.
An encumbrance
e is a limit on a property or a limit on a property’s owner’s rights that may or may
not also be a cloud on the title. The following are all examples of encumbrances.
A reservation
imposed by the grantor withholds title to a part of the land described in the deed
(Example: an easement or mineral rights).
When a structure or improvement overlaps or trespasses onto another’s property, it is an ________
When a structure or improvement overlaps or trespasses onto another’s property, it is an Encroachment
An easement
allows limited use or enjoyment of another’s land. It is a right in land and should be
created in writing and recorded. It is use without possession.
Easements can be created by express (written or verbal) or implied (by actions or evidence) grant,
agreement, reservation, limitation or prescription, necessity, or condemnation.
The government will take an easement by _________ for itself
The government will take an easement by condemnation for itself. f, the utilities, or the railroads.
Easements can be terminated by merger (acquiring the adjacent property), release, or abandonment.
Dominant and Servient Estates
- If you have two parcels of land with a road across one parcel,
the owner who crosses over the other’s land is dominant. The dominant estate would be landlocked
without the easement, in most cases. The property with the road is servient to the dominant estate.
The dominant estate benefits from the easement, while the servient estate is encumbered. The most
common reason for this type of easement is entry and exit from the property. This easement is called
an Easement Appurtenant. It goes with the land, and the landowner owns the easement.
An Easement in Gross
belongs to a person or corporation. An example is a utility easement. No
matter who owns the land, the easement still belongs to the utility company.
A license
e is permission to do a particular act upon the land or property of another. A theater ticket
or sports event ticket is a license that grants the use of one seat for one performance. A license is
similar to an easement but of much more limited duration. It is not a right in land. It is often given
verbally and easily revoked.
Adverse Possession
(squatter’s rights) occurs when property is acquired from the rightful owner
through the Statute Of Limitations. Occupancy must be hostile, visible or open, actual or notorious,
continuous, and distinct for the statutory period.
Lis pendens
is a recorded notice filed against a specific property, meaning that some form of lawsuit
has been filed but not yet resolved in court. A lis pendens may become the responsibility of a new
owner if not settled prior to closing. Broker license candidates may see a reference to a lis pendens
for the foreclosure of a traditional mortgage
