Section 2 Flashcards
What are the 4 powers by Govt that limits the rights to real property?
- Eminent domain
- Police Power of Government
- Power to Tax Real Estate
- Power of Escheat
Right of federal, state and local govt to assume ownership of private property for a necessary public use with $ paid to owner
Eminent Domain
Condemnation
Legal proceeding by which govt obtains ownership of property
Right of government to adopt/enforce laws, ordinances, and code to protect and support order, health, safety and welfare
Orderly, non discriminatory, non-advantageous and not compensated
Police Power
Derives from state/local govt rights to tax property to raise general revenue
- can also seize property if taxes not paid
- tax lien automatically placed on property, and removed when paid
- if not paid, allows govt to force the sale to collect unpaid taxes
Taxation
Power of state government when individual dies with no will or heirs
Escheat
Any interest held by any person other than the owner
- restricts use of the property and/or reduces its value and should be noted on deed
Encumberance
Deed Restrictions
Private agreements contained in a deed, lease, or will restricting use/occupancy of property. Most common: size, price, design, and setback lines of improvement
Who is subject to deed restrictions?
Buyer is subject to deed restrictions. Received fee simple title subject to deed restrictions
Unauthorized infringements on a property owners rights as a result from physical intrusion (up to date survey will find this)
Encroachments
Legal right to enter upon another’s property. Interest in the land rather than contractual agreement
Easement
What method will identify encroachments?
Metes and Bounds
Indeterminable duration and can be setup to exist forever or based on a particular persons lifetime
Freehold Estate
Fee Simple Estate
- exists for an indefinite duration
- can be sold, given away, passed to heirs
- highest and most compatible ownership
Fee simple estate that has certain qualifications/limits. Owner holds fee simple title subject to certain conditions. “Defeasible”- capable of being voided, annulled or defeated
Qualified Fee Estate
Fee simple conveyed to a person for duration of someones life; life of tenant or a 3rd party. Holder of this has full rights
Life Estate
Future investment in real estate at the same time and by the same instruments as another estate. Arises automatically upon termination of prior estate
Remainder Estate
Remainderman
Person designated to take title upon term of prior estate
Estate that is left, or reverts to the grantor after the grantor has conveyed a lessee estate to someone else
Reversion Estate
Any estate created by law
Statutory Estate
Definite duration and does not involve ownership. Tenant possess a leasehold and therefore has exclusive use of property for a time period
Leasehold Estate
- Definite beginning and end
- Doesnt automatically renew
- Not terminated by sale of property
Estate for Years
- Runs for an indefinite # of time period (mon-mon, year-year)
- Requires proper notice to terminate
- Renews automatically
Estate Year to Year “Periodic Estate”
In lawful possession of RE with no definite time period specified to vacate, and no recurring period specified
Estate at Will
Tenant occupies RE after lawful rights run out. Termination does not require notice. Runs until vacant
Estate at Sufferance
- Individual ownership
- Title held in fee simple estate or life estate in name of 1 person or corporate
- Passes to heirs
Tenancy in Severalty
- Estate owned by 2 or more people each with right of survivorship
- One title exists and all owning equal shares
Joint Tenancy/Joint Estate
What happens when one joint tenant dies?
Remaining joint tenants automatically receive his interest by right of JTROS
What 4 unities must occur simultaneously in a Joint Tenancy?
- Unity of Title
- Unity of Interest
- Unity of Possession Joint
- Unity of Time
Unity of Title
Must acquire title from same deed/will
Unity of Time
All must be named at the same time. If they want to add, it requires new joint tenancy
Unity of Interest
Own one single interest together, equally. If joint tenant list individual interest, then they are treated a tenant in common
Unity of Possession Joint
Must have undivided possession of whole property, and must have use of entire property
- Exists between Husband and Wife
- Places title to property in marital unit
- Often used to escape probate- if one spouse dies, survivor automatically succeeds ownership
- Terminated by: mutual agreement, divorce or joint conveyance
Tenancy by the Entireties
- Co-tenants hold title to property in fee simple, in their own names
- May have equal or unequal ownership interests
- Undivided interest in whole property
Tenancy-In-Common
If Tenant in Common cannot agree to a termination of tenancy or severance of interests, what is the remedy to fix?
Partition Suit
2+ persons who carry on a buisness for profit as co-owners
Tenancy in Partnership
General Partnership
All owners are general partners and each is individually liable for debts/obligations. Does NOT need to be in writing
Limited Partnership
- One or more general partners, and one or more limited partners.
- General partners control operation of biz, and limited partners must make a definite declared investment of $ or property, but no services of any kind
- Fee simple title to RE can also be held in a trust
- RE conveyed by trustor (grantor) to trustee
- Trustee holds title to RE and must manage it for benefit of another (beneficiary)
Teneacy in Trust
If a buyer wants to maintain confidentiality, what can he place title to property in?
Land Trust
As association of 2+ individuals or companies who join together for a common investment purpose and raise $ from investors to achieve their desired purpose
Syndicate
How many owners does Tenancy in Severalty have?
One owner
If one dies, the property by law passes to surviving spouse.
Tenants in Entireties
The owner of undivided interest in land with no right of survivorship owns it as a what?
Tenant in Common or in Severity
Landlord/tenant relationship
Tenancy at Will
TRUE OR FALSE: it is possible for the creator of the trust, the trustor and beneficary to be the same person
TRUE- when a public official puts their assests into blind trust
Unites of time, title, interest and possession are required to create what?
Right of survivorship, Joint tenancy
