Unit 2: Rights and Interests in Land Flashcards
Police Power
Right to enact and enforce laws governing land use
Zoning
Building codes
Governmental and Public Rights in Land (PETE)
1) Police Power
2) Eminent Domain
3) Taxation
4) Escheat
Eminent domain
Right to take property for public use
Example of ‘involuntary alienation’
Process is called ‘condemnation’
Offers ‘just compensation’
Tenant lease is terminated
Taxation
Property taxes - have priority over all other liens
NC property tax liens are specific liens
Property taxes are ‘Ad valorem’ -assessed at value
Tax rate
Expressed as dollars per $100 or per $1000 (mill rate)
Tax rate of $4 per $100 =.04
County tax + city tax /100
1.45+ 2.00=3.45/100= 0.345 annual property taxes
Special assessments
Charges against specific properties that benefit from a public improvement
Often charged on front footage
If not paid can create a lien
Escheat
Government’s reversionary right when a property is abandoned
Exercised when owner dies intestate (no will) and w/o heirs
Annual tax
Assessed value x tax rate
Assessed Value
Actual value x assessment rate
Actual value is $425.00, state assessment rate is 29%
425,000 x .29 =$ 123,250
Rights of ownership (Freehold estates)
1) Fee Simple
2) Fee simple defensible (determinable)
3) Life Estate
Fee Simple Absolute
Complete bundle of rights
Maximum or greatest control of property
Last forever
Transferable (alienation) and inheritable
Fee Simple Defeasible (qualified fee)
May be a gift
If deed condition is violated, may return to grantor
Transferable and inheritable
Life Estate
NOT inheritable
IS transferable
Can NOT give in a will
Life tenant is the owner. May sell property but upon death, buyer/lessee loses interest
Upon death, estate returns to fee smile absolute and goes to the party named in the deed (grantor or 3rd party remainderman who is appointed by grantor)
May be measured by life of grantee or by another life ( pur autre vie)
Life Estate: If Life tenant dies before the person who is the measure life
Heirs of the life tenant inherit property
Life Estate:
Upon death of person who is the measuring life, estate reverts to the grantor or remainderman
Encumbrances
Claim, right or interest held by a party who is not the legal owner
May affect property value
Can cloud title
Easement
The right to use the land of another for a specific purpose
Crested by express agreement, prescription or necessity
Non revocable
Leasehold estates
Tenant has right to posses the lands if the lessor
Tenant holds the leasehold estate
Landlord holds the lease fee estate and has reversionary interest
All transfers of an interest in real estate must be in writing to be enforceable except a lease of less then 3 yrs
Estate for years
Specific termination date
Death of lessor or lessee does not terminate
Sale of property does not terminate
NOT an estate of ownership
Periodic estate tenancy
Renews automatically
Month to month
Terminated by advance notice of either party
Estate tenancy at will
Indefinite duration
Terminated by notice or death
Estate (tenancy) at sufferance
Holdover after legal tenancy expires
Owner may evict tenant or accept rent (if rent accepted, estate becomes periodic estate )
Types of easements
1) Appurtenant easement
2) Easement in gross
3) Easement by necessity
Appurtenant Easement
1) Appurtenant easement
* Has dominant tenement and a servant tenement.
* Transfers with the land
* does not increase dominant estate’s size but may increase the value
* could grant pet entrant access to neighbors property
Easement in gross
- may be personal or commercial
- has no dominant property
- personal easement in gross cannot be assigned or inherited
- if recorded would transfer to new buyer
Commercial Easement in a Gross
Given to a business
Period is lengthy or indefinite
Easement by necessity
Granted by the courts it a private owner to remedy landlocked property. Only available to private owners
Termination of an Easement
1) merger- holder of dominant interest acquires serving property or vice versa
2) Release- holder of dominant interest releases rights to servient owner (no longer transfers with deed)
3) Abandonment- not automatic, as a process of time . Must be proven in court
Deed restrictions
Privately created limitations on land use which protect property values and he interest of property owners
Grantor imposes limitations on land use (no RVs in driveway etc
Binding and run with the land
Lien
A claim on land to secure payment of a debt
1) specific liens
2) general liens
3) writ of attachment
4) homestead rights
5) encroachments
6) licenses
Specific lien
Attaches to specific real or personal property
Property taxes
Has priority over all other liens
General liens
Attach to all personal and real property
1) judgement lien (involuntary) -unpaid hospital bills, child support, income taxes . Life is 10 yrs
Writ of attachment
Used to create encumbrance against real property
Created by court order
Followed by writ of execution to sell the property if needed to satisfy judgement
Homestead rights
Homestead exemption is created by state statue to protect primary residence
Protects against judgements for personal loans and credit cards
NC standard exemption is $35,000
Encroachments
Unauthorized use of another persons land; physical object intruding onto neighboring property
Survey or ILC reveals them
Licenses
Revocable unassignable permission granting privilege to use property
Easement by Prescription
Right acquired by a non owner thru hostile use of the lands of another
