Chapter 48 Real Property Real Property Property that

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Chapter 48 Real Property

Chapter 48 Real Property

Real Property § Property that is immovable or attached to immovable land or buildings

Real Property § Property that is immovable or attached to immovable land or buildings § Types of real property: § Land buildings § Subsurface rights: Rights to the earth located beneath the surface of the land § Plant life and vegetation: Plant life and vegetation growing on the surface of land are considered real property 2

Real Property § Fixtures: Goods that are affixed to real estate so as to

Real Property § Fixtures: Goods that are affixed to real estate so as to become part thereof § Air rights: The owners of land may sell or lease air space parcels above their land 3

Estates in Land § Ownership rights in real property; bundle of legal rights that

Estates in Land § Ownership rights in real property; bundle of legal rights that the owner has to possess, use, and enjoy the property § Type of estate: Determined from the deed, will, lease, or other document that transferred the ownership rights 4

Freehold Estate § Freehold estate: An estate in which the owner has a present

Freehold Estate § Freehold estate: An estate in which the owner has a present possessory interest in the real property § Fee simple absolute: A type of ownership of real property that grants the owner the fullest bundle of legal rights that a person can hold in real property 5

Freehold Estate § Fee simple defeasible: A type of ownership of real property that

Freehold Estate § Fee simple defeasible: A type of ownership of real property that grants the owner all the incidents of a fee simple absolute except that it may be taken away if a specified condition occurs or does not occur § Life estate: An interest in real property for a person’s lifetime; upon that person’s death, the interest is transferred to another party § Estate pour autre vie: A life estate that is measured by the life of a third party 6

Concurrent Ownership § A situation in which two or more persons own a piece

Concurrent Ownership § A situation in which two or more persons own a piece of real property § Also called co-ownership 7

Concurrent Ownership § Forms: § Joint tenancy: A form of co-ownership that includes the

Concurrent Ownership § Forms: § Joint tenancy: A form of co-ownership that includes the right of survivorship § Right of survivorship: A legal rule that provides upon the death of one joint tenant the deceased person’s interest in the real property automatically passes to the surviving joint tenant or joint tenants 8

Concurrent Ownership § Tenancy in common: A form of co-ownership in which the interest

Concurrent Ownership § Tenancy in common: A form of co-ownership in which the interest of a surviving tenant in common passes to the deceased tenant’s estate and not to the co-tenants § Tenancy by the entirety: A form of coownership of real property that can be used only by married couples 9

Concurrent Ownership § Community property: A form of ownership in which each spouse owns

Concurrent Ownership § Community property: A form of ownership in which each spouse owns an equal one-half share of the income of both spouses and the assets acquired during the marriage § Condominium: A common form of ownership in a multiple-dwelling building in which the purchaser has title to the individual unit and owns the common areas as a tenant in common with the other condominium owners 10

Concurrent Ownership § Cooperative: A form of co-ownership of a multiple-dwelling building in which

Concurrent Ownership § Cooperative: A form of co-ownership of a multiple-dwelling building in which a corporation owns the building and the residents own shares in the corporation 11

Future Interests § The interest that a grantor retains for himself or herself or

Future Interests § The interest that a grantor retains for himself or herself or a third party § Reversion: Right of possession returns to the grantor after the expiration of a limited or contingent estate § Remainder: Right of possession that goes to a third party upon the expiration of a limited or contingent estate § Remainder beneficiary 12

Transfer of Ownership of Real Property § Title to real property can be transferred

Transfer of Ownership of Real Property § Title to real property can be transferred by: § Sale (conveyance): The passing of title from a seller to a buyer for a price § Deed: An instrument that describes a person’s ownership interest in a piece of real property § Grantor: The party who transfers an ownership interest in real property § Grantee: The party to whom an interest in real property is transferred 13

Transfer of Ownership of Real Property § Types of deeds: § General warranty deed:

Transfer of Ownership of Real Property § Types of deeds: § General warranty deed: A deed that protects a grantee of real property from defects in title caused by the grantor and prior owners of the property § Special warranty deed: A deed that protects a grantee of real property from defects in title caused by the grantor 14

Transfer of Ownership of Real Property § Quitclaim deed: A deed in which the

Transfer of Ownership of Real Property § Quitclaim deed: A deed in which the grantor of real property transfers whatever interest he has in the property to the grantee § Recording statutes: A state statute that requires a mortgage or deed of trust to be recorded in the county recorder’s office of the county in which the real property is located § Quiet title action: An action brought by a party, seeking an order of the court declaring who has title to disputed property 15

Transfer of Ownership of Real Property § Marketable title: Title to real property that

Transfer of Ownership of Real Property § Marketable title: Title to real property that is free from any encumbrances or other defects that are not disclosed but would affect the value of the property § Attorney’s opinion § Torrens system § Title insurance: A form of insurance obtained from a title insurer who agrees to reimburse the insured for losses caused by undiscovered defects in title 16

Transfer of Ownership of Real Property § Tax sale § Gift or inheritance 17

Transfer of Ownership of Real Property § Tax sale § Gift or inheritance 17

Adverse Possession § A person who wrongfully possesses someone else’s real property obtains title

Adverse Possession § A person who wrongfully possesses someone else’s real property obtains title to that property if certain statutory requirements are met § Certain statutory requirements: § Statutorily prescribed time period § Open, visible, and notorious § Actual and exclusive § Continuous and peaceful § Hostile and adverse 18

Easements and Nonpossessory Interests § Nonpossessory interest: A situation in which a person holds

Easements and Nonpossessory Interests § Nonpossessory interest: A situation in which a person holds an interest in another person’s property without actually owning any part of the property 19

Easements and Nonpossessory Interests § Easement: A given or required right to make limited

Easements and Nonpossessory Interests § Easement: A given or required right to make limited use of someone else’s land without owning or leasing it § Easement appurtenant: Owner of one piece of land is given an easement over an adjacent piece of land § Servient estate: The land over which an easement is granted § Dominant estate: The land that benefits from an easement 20

Easements and Nonpossessory Interests § Easement in gross: Authorizes a person who does not

Easements and Nonpossessory Interests § Easement in gross: Authorizes a person who does not own adjacent land the right to use another’s land § License: A document that grants a person the right to enter upon another’s property for a specified and usually short period of time § Profit-à-Prendre: A document that grants a person the right to remove something from another’s real property 21

Zoning § Zoning ordinances: Local laws that are adopted by municipalities and local governments

Zoning § Zoning ordinances: Local laws that are adopted by municipalities and local governments to regulate land use within their boundaries § Variance: An exception that permits a type of building or use in an area that would not otherwise be allowed by a zoning ordinance § Nonconforming uses: For real estate and buildings that already exist in a zoned area that are permitted to continue even though they do not fit within a new zoning use established for the area 22

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 23

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 23