Unit 2: Property, Estates, & Ownership Flashcards
What is ownership?
The basic element of real estate
What is bundle of rights?
A collective of rights someone has in owning a property
What’s comes with the bundle of rights?
The rights to own, possess, Use, enjoy, borrow against and dispose of real property.
An owner may choose to sell or give away one of the rights and keep the rest.
Ex.
An owner may give away the right of use for a period of time to a tenant, under a lease agreement.
WHAT IS UPTEE?
USE POSSESS TRANSFER ENCUMBER ENJOY
What is Encumber?
The right to borrow money and use property as security for the loan.
What is property?
Property is anything that may be owned and gained lawfully.
How many types of property are there and what are they.
There are 2 Types
Personal
Real
What is personal property
Everything other that real.
Ex. Intangible assets
Bank Accounts
Insurance policies
What is real property?
Real property is land.
Anything permanently attached to the land.
Anything appurtenant to the land.
Anything immovable by law
Describe land
Land Is a 3 dimensional
Air space
Surface
Subsurface
What is surface rights?
Surface rights is the topsoil and the rights to the use of the soil.
Surface rights includes.
- The right to build on the land.
- Grow Crops
- Hunt& Fish
What is air rights?
The rights an owner of real property has to airspace above the property to a reasonable height.
As real property air rights can be sold, leased or encumbered separately from the land.
What is subsurface rights?
Subsurface rights are the rights to natural resources, such as minerals,oil, and gas below the surface.
Oils and gas may not be owned until taken from the ground
True or false
True
What is attachments?
Attachments are items permanently attached to the land are real property and belong to the owner
How many types of attachments are there? And what are there names?
3 types
- Improvements
- fixtures
- Natural Attachments
Explain improvements
Such as houses, garages, fences, swimming pools or anything resting on the the land to become permanent are owned as part of the property.
Explain fixtures
Anything permanently attached to real property.
Ex. Such as doors to a house
Or cabinet
Disputes about real and personal property have caused the courts to adopt a set of test to help them decide ownership rights of disagreeing parties
What are these 5 test know as
M-method of attachment
A-adaptation
R- Relationship of parties
I- Intention
A- Agreement of the parties
Method of attachment
How is the disputed item attached to the property. A chandelier wired into the electrical statement would make it a fixture, or real property.
It would be included in the sale of the house unless the sellers specifically mentioned they wanted to take it with them.
Adaptation
Has the item been made especially for the property?
Ex. Is the stove built into the counter? If so, it has became a fixture and has lost its status as personal property
Relationship of the parties
In a disputed about fixtures, when there is no convincing evidence of the right of one party, court will look at whether the parties are
Landlord-Tenant
Lender-Borrower
Buyer-Seller
The court then makes decision based on the relationship of the parties in the case.
Usually the court will favor the tenant over the landlord, lender over the borrower and the buyer over the seller.
Intention
If apparent, either in writing or by the actions of either party involved. Considered the most important.
A fixture may remain personal property if all parties are informed. Intentions should always be put in writing.
Agreement of the parties
You fall in love with the property because one specific room has a chandelier. You agree to buy. You move into the property but the chandelier is replaced with a light bulb. The chandelier is real property unless stated in writing before sale and both sides agree. If you don’t know the different between real and personal property, you might think the sellers had a right to the chandelier.
Real estate agent job is to make sure both sides of the party knows what goes what stays
What is exception Trade Fixture
Personal property, such as shelves, commercial ovens or room partitions that are attached to real estate by a tenant. Tenants retain ownership of the item as personal property when they vacate the premises. But are responsible for repeating any damage that results from replacing trade fixtures.
What is Emblements?
Are crops cultivated by tenant farmers and sharecroppers
They lease land for agricultural use.
The crops are personal property of the owner not the landowner.
The farmer has irrevocable license to enter the land to care for the harvest of crops
What does appurtenances mean?
Anything used with the land for its benefit
What are the two most common appurtenances?
Easement
Stock in a mutual water company
What is easement
Non possessory right to use/or enter onto the real property of another without having possession of it.
Stock in a mutual water company?
Real property owned by water users who have organized to form a water company for their mutual benefits.
The shares are appurtenant to the land and go with the sale of the property.
Review of Real Property
Land
Attachments
Appurtenances
Anything Immovable by law
What is an Estate and how many types are there?
The ownership interest or claim a person has in real property.
2 types
Freehold estate
Non Freehold estate
What is freehold estate
An estate with indefinite duration or that is measure by the length of someone’s life
What is a non freehold Estes
An estate with fixed determinable duration.
There are two types of free hold estates. What are they?
Estate in Fee
Life estates
Explain an estate in Fee
Also known as Fee simple Estate
Greatest ownership in property
An estate that is unqualified, of indefinite duration, Freely transferable and inheritable.
If the property is transferred or sold with no conditions or limitations on its use, it is known as an estate in Fee Simple Absolute
A property owner may impose qualifications, conditions, or restrictions when transferring title to property. Property restrictions are created. Y deed or written agreement.
What is this know as?
Fee simple subject to condition subsequent
With a fee simple subject to a condition subsequent, there is something that the owner must not do. If the owners breaks the condition, the property will go back to the former owner
True or false
True.
What is Life Estate
One that is limited in duration of a measuring life.
It could even be created on the life of a designated person who has no interest in the property known as Pur Autre Vie
A life Estate designated to a person of no interest in the property as the measuring life is known as what?
Pur Autre Vie
Meaning “Another Life”
Explain an Estate in Revision
To Return
Fred grants a life estate to James upon James death the property reverts back to Fred.
Reserving a Life Estate
Reserving property until death.
An elderly couple sell there Store to Fred the developer reserving the rights to the property until there death when Fred the developer then will be able to take control of the property.
Pur Autre Vie
Another’s Life
Fred grants a life estate to Tai for the life of Mataka. With the provision that it goes to Neeko when Matake dies
Estate in Remainder
Designate someone to recover property when tenant passes.
Fred grants Mataka a life estate, with the provision that upon Mataka’s death the property goes to the remainderman Neeko
What is a NonFreeHold Estate
Is a temporary possession and use of a property
Such as renting
Tenancy for years
Renting with a definite end date
July 17, 2016-July 17, 2017
Periodic Tenancy
Refers to a leasehold interest that is for an indefinite period of time
Usually month to month.
What is tenancy at will?
Is created when a tenant obtains possession of the property with the owners permission but with ought a rental agreement.
The tenancy can end by the unilateral decision of either party.
Either party just give a 30 day notice before ending tenancy
What is a title?
Is the evidence that the owner of the land is in lawful possession
It is the proof of ownership.
Separate ownership or ownership in severalty
Property is owned by one person or one entity.
Concurrent ownership or co-ownership.
When property is owned by 2 or more persons or entities at the same time.
How many types of co-ownerships are there ?
4 types
- Tenancy in common
- Joint Tenancy
- Community property
- Tenancy in partnership
Tenancy in common
When two or more, whose interest are not necessarily equal, are owners of undivided interest in SINGLE ESTATE
NON OF THE OWNERS MAY EXCLUDE ANY CO-OWNER FROM THE PROPERTY NOR CLAIM ANY PORTION FOR EXCLUSIVE USE.
Joint tenancy with the right of survivorship
The right of survivorship means that if one of the joint tenant dies, the surviving joint tenants automatically become sole owners.
The share of deceased does not go to his or her estate or heirs.
In order to have joint tenancy what must exist
TTIP
TIME. BECOME TENANTS SAME TIME
TITLE. TAKE TITLE ON SAME DEED
INTEREST. Equal undivided interest
POSSESSIONS Have equal rights of possesion
Community property
Acquired during marriage.
Property excluded from community property treatment ?
- Property owned before marriage
- Property acquired by either of the parties during marriage by gift or inheritance
- Income derived from separate property
The spouse owning 50%
Tenancy in Partnership
Ownership by two or more persons who form a partnership for business purposes.
What is acknowledgment
A formal declaration to a public official (notary) by a person who has signed an instrument that’s states that the signing was voluntary
What is appurtenances
Those rights and improvements that belongs to a pass with the transfer of real property but are not necessarily a part of the actual property
Bundle of rights
An ownership concept describing all the legal rights that attach to the ownership of real property.
What is easement
Interest owned by one person in the land of another person
What is Estate?
A legal interest in land, defines the nature m, degree, extent and duration of a persons ownership in land.
What is trade fixture?
Personal property affixed to leased property by the tenant for business purpose that may be removed by tenant upon termination of the lease.
What is riparian rights ?
The rights of a landowner whose land is next to martial watercourse to reasonable use of whatever water flows past the property.
What is free hold estate?
An estate in real property which continues for an indefinite period of time.
What is Emblements?
Annual crops produced for sale by tenants farmers.
What is personal property
Anything movable that is not real property.
What is littoral?
Land bordering a lake, ocean, or sea
What is fixture?
Personal property that has become affixed to real estate.
What is Real property?
Land, anything affixed to land, anything appurtenant to be land, anything immovable by law
What is severalty ?
Ownership of real property by one person or entity
What is chattel
Personal property
What is less than freehold?
A leasehold estate; considered to exist for a definite period of time or successive periods of time until termination
What is life estate?
An estate that is limited in duration to the life of its owner or the life of some other chosen person.
What is a title?
Evidence of land ownership
What is a constructive notice?
Notice given by recording a document or taking possession of the property
What is Quite enjoyment
The right to peace with ought aggravation by others.
In a technical sense, the term “property” refers to
Right or interest in the thing owned
Why do disputes arise regarding ownership of personal property?
Personal property can become real property.
Is airspace considered real property
True or False
True
Is a lease considered personal property
True or false
True
A running stream is considered real property
True or false
True
Riparian property owners own the water and may use as much as they want
True or false
False
An existing mortgage is personal property?
True
The following are appurtenant to land?
Something acquired by legal right and uses with the la d for its benefits
A right of way over another’s adjoining land
Stock in mutual water company
Five general test of a fixture
Method of attachment Adaptation Relationship of the parties Intention Agreement of the parties
Bearing wall in a single family home considered real property?
True
Of indefinite duration is a phrase that describes an?
Estate of inheritance
John conveys a portion of his fee estate to Fred that is for a term less that his own, john’s own interest would be :
Reversion
Tenancy for years is a free hold estate or non free hold estate
Non freehold estate
David left his son 2/3 interest and left his son’s wife 1/3 interest in real property jointly and with ought the right of survivorship. They will take title as
Tenancy in common
Ownership in severalty would most likely involve
Sole ownership
Baker, Cook, and Turner own equal interest in parcel of land as tenants in common. Without the consent of the others, Turner leased the entire parcel to hunter for agricultural purposes. Such a lease would be:
Valid, but Hunter takes the property subject to Baker and Cook right to share in the enjoyment and possession of the property.
The words “ Time, Title, Interest, and possession Are most closely related to
Survivorship
How are joint tenancy interest and community property interest alike?
Ownership interest are equal
Chris, Bell, and Lyn took title to a property as joint tenants. Chris sold her share to Pat, And then Bell dies. Who owns the property now?
Lyn, and then Bell died. Who owns the property now.
A contract to sell community real property made by one spouse only is
Unenforceable
