The Concept of Property Flashcards
The right of possession is…
The right to occupy, live, breathe, and do whatever on your property because you own it. This is also known as the right to use.
The right of control is…
The right to use or change the property in any way that is not illegal/deed restricted - including making a profit off the property
The right of enjoyment is…
Your right to quiet enjoyment without someone claiming superiority or building a noise maker next to you like an airport or sumn
The right of exclusion gives an owner the right to…
Restrict access to their property.
The right of disposition is the right to…(disposition means arrangement)
The right to sell, lease, and/or will property to anyone you choose (you have the right to transfer all of your property rights or just some). Also, the right to mortgage or encumber the property as collateral for debt.
The right of disposition is also called…
the right to transfer
The five rights in a bundle of rights:
PCEED (possession, control, enjoyment, exclusion, and disposition)
Do renters have all 5 rights?
NO (no control, no exclusion, and no disposition)
Appurtenances are…
Surface rights (sometimes called the right of access)
Subsurface rights (sometimes called mineral, oil, or gas rights)
Air rights
Water rights
Appurtenances are most often transferred with the property, but is it possible to sell them seperately
It’s possible to sell them separately.
Surface rights are…
the right to access, use, and build things on the surface of real property
Subsurface rights are…
Ownership rights to everything underneath a piece of land, extending downward to the earth’s center.
Subsurface rights are also commonly referred to as
mineral rights
Subsurface rights can be sold separately from surface rights. T or F
true
In a scenario where one person holds the surface rights to property, and another holds the subsurface rights, the person with the ___________- has priority.
subsurface rights
The rule of capture (also called the law of capture) states that…
A landowner who drills a well for gas or oil on their land is entitled to all that well produces — even if the gas or oil migrates from beneath a neighbor’s property.
Supporting Rights are…
The right to not have their land move around because a neighbor has decided to dig a hole.
Lateral support is provided by
adjacent properties
Subjacent support comes from
the underlying earth
Air rights are the right to…
The right to use the air space above the surface of land.
Water rights are the right of…
a property owner on a waterfront to access and use that water
Appropriative rights are…
Water rights (granted by the government) that allow a party to take water from a body of water for a specified and approved use
the doctrine of prior appropriation grants…
a state the power to control and regulate all water resources within its borders, and property owners must apply for a permit to use any available water source.
State of North Carolina (does or does not) operate under the doctrine of prior appropriation.
does not
When thinking about water rights, license holders should ask themselves three questions:
Who controls the water in question? The state or the property owner?
Is the water moving?
Is the water navigable?
Water rights are ________ to the land and cannot be…
appurtenant
sold or transferred other than with the adjoining land.
Riparian rights govern the use of
flowing water
In accordance with riparian rights, a property owner ______ own the water, but they can ____ the water
does not
use
Owners of riparian land bordering navigable bodies of water only own the land up to…
the banks of the water
Owners of riparian land bordering non-navigable bodies of water only own the water up to
The center of the waterway.
Littoral rights govern
lakefront or oceanfront property
When it comes to oceanfront property, the state owns what is called the
foreshore
Percolating rights refer to…
The use and ownership of underground water.
Personal property is conveyed by
bill of sale or by bequest in a will
Real property is conveyed by
deed
Cattle can be chattel means…
Chattel is a commonly used term for personal property.
fructus naturales are considered as….
real property because of their permanence
Annually cultivated crops are called fructus industriales, or emblements, and are considered as…
personal property
Improved land usually refers to
Land that has some constructed building on it, for example, a house.
An improved lot will refer to
Land that has been prepared to meet certain basic required services needed to develop that lot, such as electricity, street access, or water access.
A fixture is
An object that was once personal property but is now firmly attached to the land in such a way that it is considered to be real property. Ex. = a ceiling fan
Because fixtures can be detached from land and can switch from personal property to real property, the best practice is to
List all fixtures in writing in the sales contract.
Parties to a contract can agree to treat fixtures differently as long as
Their intentions are ratified as part of the written contract.
Annexation is…
the process of creating a fixture
Close association is…
Conceptual linkage to real property. A good example of a close association is a garage door opener. The opener itself is not attached to the property, but it’s conceptually linked to the garage door, which is attached to the property.
Agreement is…(talking about annexation here)
The parties to a contract agree that personal property will remain with the real property (make sure to get this in writing!).
Adoption is…(talking about annexation here)
Customizing personal property for use with real property, such as drapes cut for a window in a room with a high ceiling.
Tenants (can or cannot?) make fixtures to their rental?
they can as long as they ask for permission first
A manufactured home in NC has to be ____ or more in width and _____ feet or more in length
8
40
you should be able to confirm the property type by examining the ________ for a label which will tell you whether the improvement is manufactured or modular.
electrical power box
While the manufactured home is still mobile with its own wheels and chassis, it has a Vehicle Identification Number (more commonly referred to as a VIN number) registered with the _______- and is considered personal property.
North Carolina Department of Motor Vehicles
____ homes can be personal or real property, ______ homes are considered ___ property
manufactured
modular
real
A trade fixture is…
It is a fixture, like a shelf or display case, that is owned by and needed for a tenant’s business.
Trade fixtures are the property of
The tenant.
Agricultural fixtures are items used…
For agricultural purposes. And can be considered trade fixtures.
North Carolina Uniform Commercial Code on Fixtures states (regarding fixtures bought with credit)
A fixture purchased using credit remains personal property until the debt is paid in full due to the creditors security interest in the Registrar of Deeds
Severance is
the act of converting real property into personal property
Who is Irma?
The total circumstances test the courts use to determine whether or not something is a fixture. If all four factors are satisfied, the attached item would be considered a fixture.
What does IRMA stand for?
Intention
Relationship of the parties
Method of annexation
Adaptation to real estate
IRMA; Intention refers to…
The intent of the homeowner when they installed the item
Which IRMA factor is the most important?
Intention
IRMA; Relationship of the parties refers to…
Landlord-tenant relationships/agreements -especially in the commercial context and/or with trade fixtures
IRMA; Method of annexation refers to…
Anything that would damage the home to severe? That’s probably a fixture.
IRMA; Adaptability refers to…
Anything specifically adapted to the home could be a fixture.
What trumps IRMA?
Agreements
____ details of property conveyance should be listed in writing
ALL
Difference between “improved lot” and “improved land”
An improved lot refers to land that has been prepared to meet certain basic required services needed to develop that lot, such as electricity, street access, or water access.
Improved land usually refers to land on which “improvements” have been made.
The generality of the terms is what’s different. Lots have specifics. Lands do not.
