17 CHAPTER Ownership and Leasing of Real Property

17 CHAPTER Ownership and Leasing of Real Property 17 -1 Ownership and Transfer of Real Property 17 -2 Leasing Real Property Law for Business and Personal Use © Thomson South-Western

17 -1 Ownership and Transfer of Real Property GOALS n Understand both the rights and limitations associated with ownership of real property n Identify the forms of ownership and how they are transferred Chapter 17 Slide 2 Law for Business and Personal Use © Thomson South-Western

RIGHTS OF REAL PROPERTY OWNERSHIP n Real property rights n Surface rights- include the right to occupy the land, develop it with buildings and fixtures, and even to lay waste to it by destroying its resources such as timber or water. n Rights to the air space above the land n Mineral rights n Mineral right- The right to dig or mine the earth n Water rights Chapter 17 Slide 3 Law for Business and Personal Use © Thomson South-Western

LIMITATIONS OF REAL PROPERTY OWNERSHIP n Limitations on ownership n Easements- irrevocable rights to some limited use of another's land. n Substantial periods of time, 5 years, 50 years or forever n Appurtenant, gross, necessity, prescription (page 301) n Restrictive covenants- A promise usually made in writing by the buyer to the seller. Usually limits the use of the land in some way n Zoning ordinances- adopted by cities or countries to regulate the location of residential, business, and industrial districts. n Duties owed to entrants on land Chapter 17 Slide 4 Law for Business and Personal Use © Thomson South-Western

List four potential limitations on the ownership rights of real property. Chapter 17 Slide 5 Law for Business and Personal Use © Thomson South-Western

FORMS OF REAL PROPERTY OWNERSHIP n Fee simple absolute- the state with all the ownership rights. n Owner exercises all the power allowed by law. n Conditional estate- makes the ownership conditional on some act or event. n Life estate- ownership only for the length of a specified person’s life. n Non-freehold estate- (tenancy), involves ownership for a limited period of time. Chapter 17 Slide 6 Law for Business and Personal Use © Thomson South-Western

TRANSFER OF REAL PROPERTY OWNERSHIP n Deed- the legal document used to transfer ownership of real property. n Gift, sale, or inheritance n Adverse possession- occurs when you adversely and exclusively possess in an open and notorious way the land of another private person. n Must be continuous and for the statutory period of 5 to 21 years depending on state law. Chapter 17 Slide 7 Law for Business and Personal Use © Thomson South-Western

TRANSFER OF REAL PROPERTY OWNERSHIP n Dedication or eminent domainn eminent domain- the power of the government to take private property for public use in exchange for the fair market price. n Property taken under eminent domain must be used for public use; n Highways, airports, parks or schools Chapter 17 Slide 8 Law for Business and Personal Use © Thomson South-Western

Name the four major types of estates in real property. Chapter 17 Slide 9 Law for Business and Personal Use © Thomson South-Western

17 -2 Leasing Real Property GOALS n Compare the various types of leases n Explain the rights and duties of landlords and tenants Chapter 17 Slide 10 Law for Business and Personal Use © Thomson South-Western

FOCUS Tenant Landlord Rights Duties Do you know anyone who is either a tenant or a landlord? Chapter 17 Slide 11 Law for Business and Personal Use © Thomson South-Western

Leasing Real Property n Lease- an agreement in which one party receives temporary possession of another's real property in exchange for rent. n Rent- the consideration given in return for temporary possession. n Leasehold Estate- the ownership interest of the tenant n Grants certain rights in the subject property to the tenant Chapter 17 Slide 12 Law for Business and Personal Use © Thomson South-Western

WHAT ARE THE TYPES OF LEASES? n Periodic tenancy- the leasehold is for a renewable period of time with rent due at stated intervals. n Week to week, month to month or year to year n Notice of termination is required n Tenancy for years- a leasehold for a definite period of time n Ex: six months, one year, or ninety years n Identifies a date for ending the lease n Tenancy at sufferance- If a tenant remains in possession after a lease has expired n Tenancy at will- If a party possesses land with the owner’s permission but without an agreement as to the term of the lease or the amount of the rent Chapter 17 Slide 13 Law for Business and Personal Use © Thomson South-Western

Name the four types of leaseholds. Chapter 17 Slide 14 Law for Business and Personal Use © Thomson South-Western

RIGHTS AND DUTIES OF THE TENANT n Tenant’s rights n Right of possession n Eviction- when the landlord blocks the tenant from possession of all the real property n Right to use the property n Right to assign the lease or to sublet the premises n An assignment of a lease takes place when the tenant transfers his or her entire interest in the lease to a third person n Tenant’s duties n Duty to pay rent n Duty to take care of the property n Torts duty Chapter 17 Slide 15 Law for Business and Personal Use © Thomson South-Western

RIGHTS AND DUTIES OF THE LANDLORD n Landlord’s rights n To receive agreed-upon rent n To sue to evict tenant n Landlord’s duties n Duty to provide habitable premises n Duty to conform to governmental requirements Chapter 17 Slide 16 Law for Business and Personal Use © Thomson South-Western

Name three rights a tenant has. Chapter 17 Slide 17 Law for Business and Personal Use © Thomson South-Western