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67 Cards in this Set
- Front
- Back
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APPURTENANCE
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Run With The Land!
Belongs to property, but not for all time; rights, privaleges, improvements that pass with transfer of property, but are not part of it. Ex: Rights of Way, Easements, Water Rights, Parking Stalls, Improvements |
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CHATTEL REAL
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Personal Property that is annexed to Real Estate (not moveable like personalty)
Ex: Lease |
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COMMUNITY PROPERTY
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Each spouse has an equal interest in property acquired by efforts of either spouse during marriage, regardless of name(s) on title.
a) Two classifications of property: 1. Separate (acquired by inheritance, will or gift); and 2. Community b) Listing Contract, or any instrument of conveyence, requires both signatures c) No rights under Dower, Curtesy or Survivorship are recognized (decedent's heirs receive decedent's half of property) |
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CURTESY
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a) Is a type of Statuatory Life Estate (not in AZ)
b) Upon wife's death, husband automatically has a state-specified interest in her estate (Ex: one-third interest) |
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DEMISE
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Conveyance of estate or interest in Real Property to someone for a certain number of years, for life, or at will; usually refers to LEASE.
Implies covenant of quiet enjoyment for Lessee by Lessor (aka no disturbance in use by superior claims of others) |
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DETERMINATE DURATION
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Look up!
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DOWER
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a) Is a Statuatory Life Estate (not in AZ)
b) Upon husband's death, wife automatically acquires a state-specified interest in his estate (Ex: one-third interest) |
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EASEMENT
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a) Right acquired by one party to use the land of another for a specific purpose
b) Interest is in use - not an ownership interest in land |
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EASEMENT: APPURTENANT
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Runs with land!
a) Two seperate properties b) Two different owners c) Servient Property is burdened by easement; Dominant Property benefits from easement (must provide maintenance, etc) d) Easement stays with the land when sold |
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EASEMENT: CREATION
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1. Agreement
2. Condemnation: Government power of eminent domain; compensation provided 3. Necessity: Created in court (Ex: Land-locked lot) 4. Prescription: Owner is defendant in Adverse Possession/Squatter case; statuatory period for both rights and abandonment (10 and 5 years in AZ) |
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EASEMENT: vs. LICENSE
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License is personal permission to perform specific act on the property of another (Ex: hunting, selling wares, getting married)
a) Differs from easement in that it donotes to interest in land b) Revocable c) Terminates upon sale or death or either party |
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EASEMENT: IN GROSS
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a) Interest in use to a Person, not another property
b) Holder of easement not required to own property adjacent to Servient c) Cannot be sold to third party; ceases on death or liquidation of Holder * d) Easements in Gross held by legal persons (Ex: corporations) for Rights of Way can be morgaged or sold |
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EASEMENT: TERMINATED
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1. Release: Owner of dominant estate releases interest, usually by quitclaim deed affecting servient
2. Merger: Owner of dominant estate buys servient estate 3. Failure Of Purpose: Purpose for easement ceases 4. Abandonment: Must be clear acts showing intent of dominant estate 5. Non-Use only with Prescriptive (5 years in AZ) 6. Overburden: Use of easement for improper purpose |
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EGRESS and INGRESS
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E: Way to EXIT from a property.
I: Way to enter INTO a property. Re: Easements |
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ESTATE
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D.E.N.
Degree, Extent, Nature of ownership interest in real property. Re: 'Legal Position' of ownerhsip, NOT 'Amount' owned Required: a) Interest must be Possessory; b) Ownership must be measureable in terms of duration |
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ESTATE:
Freehold and Leasehold |
Freehold:
a) Indefinite duration b) Ownership interest c) Two Types: i. Fee Estates: Inheritable ii. Life Estates: Non-Inheritable Leasehold: a) Definite duration b) Tenant possesses leasehold estate c) Landlord possesses reversionary fee estate |
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ESTATE: AT WILL
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Leasehold
a) Runs for as long as the Lessor/Landlord and Lessee/Tentant will it b) Indefinite; either party may cancel 'at will' |
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ESTATE: AT SUFFERANCE
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Leasehold
Tenant stays in possession of property after lease expires, or has been legally terminated, without consent of owner/landlord. |
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ESTATE: FOR LIFE
Ordinary/Conventional: Description and Rights |
Description
a) Created by Parties: b) Limited duration based on Life of its Owner; or on Life of other designated person c) Freehold d) Not Inheritable e) Can include both personal and real property Rights of Life Tentant: a) Sell b) Lease c) Borrow Against/Encumber d) Cannot 'make waste' of the property or will it to others |
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ESTATE: FOR LIFE
Ordinary/Conventional: Parties and Interests |
Interests:
a) Life Tenant: Owner of Estate b) Future Estate: Holder is Grantor c) Estate in Reversion: Grantor dies before Tenant (would revert back to Grantor's Heirs) d) Reversionary Interest: Future interest of grantee; Owner grants home, but reserves a Life Estate e) Remainder Estate: Concurrent Future Estate; created by grantor for 3rd Party; estate goes to a new, named Tenant upon original Life Tenant's death; this 3rd Party's interest is Vested Remainder f) Pur Autre Vie: Grantor gives to Tenant for Life of 3rd Party 1) Upon death of 3rd Party, Estate either: A) reverts back to Grantor; or B) goes to a named Vested Remainderman. 2) Upon death of Tenant before 3rd Party, Estate goes to Tenant's Heirs, who would have Contingent Remainder Interest |
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ESTATE: FOR LIFE
Statuatory/Legal |
A) Created by Laws
B) Four Types of Estates: 1. Community Property: (in AZ) Spouses share equal interst in property acquired during marrage; 1-signature for listing and 2-signatures for sales and purchase 2. Homestead Exemption Protection: (in AZ) Protects up to $150K equity from unforeseen liens, judgements or bankruptcy a) No protection from mortgages or voluntary liens b) Must occupy home as primary residence c) Upon sale, can hold $150K in Escrow for 18 months to find new house 3. Dower: Wife's 100% claim to deceased husband's interst (not in AZ) 4. Curtesy: Husban'd 100% claim to deceased wife's interest (not in AZ) |
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ESTATE: IN REMAINDER
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a) Estate which vests after termination of prior estate. For instance, a Life Estate.
b) Created at same time and by the same instrument as another estate; limited to arise upon termination of the other estate. |
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ESTATE: IN REVERSION
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Estate ownership that reverts back to Grantor after a temporary ownership period.
Ex: child gives parents a home with condition that, upon their death, the child takes back home |
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ESTATE: OF INHERITANCE
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a) Freehold estate
b) Passed by descent or will after owner's death |
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ESTATE: OF YEARS
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Leasehold
Runs for specific time period |
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ESTATE: FEE SIMPLE: DEFEASIBLE
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Hint: Defeatable (Potential for being terminated, annulled or invalidated.)
Two Forms of Fee Defeasible Estates: (Difference is language of Duration versus Condition...) 1. Determinable: Duration of estate determined by deed itself (Ex: So long as; while; during); reversion is pre-determined or automatic (Ex: as long as he never spends a day in jail) 2. Conditional: Duration of estate determined by Grantor's willingness to terminate based on set conditions (Ex: provided that; on the condition that; if) which would take a Court Order (Ex: On the condition that the land is used for a school) |
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ESTATE: FEE SIMPLE: FEE TAIL
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Limits heirs to lineal descendents (blood relatives); specific descending order
Not in AZ: All heirs are elibible, whether direct descendents or not |
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TENANCY: AT SUFFERANCE
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AKA Holdover Tentant
a) Tenant wrongfully holds over after lease b) Lowest form of estate c) Protects tenant from being Trespasser due to original lease; protects owner from Acquistion by Adverse possession d) Can be converted to a tenancy at Will by owner |
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TENANCY: AT WILL
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a) Occupies RE for unspecified time
b) Duties and Obligations of landlord-tenant still exist c) Terminated by death of either or sale |
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TENANCY: BY THE ENTIRETY
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a) Special joint-tenancy between husband/wife placing all Title to Property into marital unit
b) Upon divorce, if not agreed before, estate reverts to Tenants in Common |
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TENANCY: CO-TENANTS
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a) Two or more persons share Undivided Interest in land; cannot be separated from whole.
b) Co-tenant agreements include a "Joint and Several Liability Provision" meaning that each tenant is fully and independently liable to the landlord for all expenses associated with the rental unit. |
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TENANCY: CONCURRENT
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Ownership by Two or More Persons:
a) Equal Ownership; sale requires all signatures b) Created by Agreement of Parties -or- Operation of Law (recording by Title Co) |
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TENANCY: IN COMMON
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a) Two or more persons
b) Undivided interest c) In proportion to share d) No right of survivorship e) Sell interest w/out consent f) Negative: Uncertainty connected to probate and heirs of partner who dies |
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LEASE
Requirements |
Requirements of Valid Lease:
1. Written: Statute of Frauds Requirement 2. Signed by Grantor: Lessor is Giving Up Something 3. Statement of Intent: "let and demise" (transfer the leasehold) 4. Period of Occupancy 5. Consideration for Right to Occupy (rent amount) 6. Adequate description of premises (not Legal) 7. Possession must be delivered by landlord and accepted by tenant |
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LEASE: GROSS and NET
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Gross:
Short-Term; Landlord Pays: a) Taxes b) Assessments c) Operating Costs d) Usually Long-Term Lease (Ex: Apartments) Net: Long-Term; Tenant Pays: a) All Expenses |
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LEASE: PERCENTAGE
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Retail stores, restaurants, bars, often in malls
Tenants Pays whichever is higher: a) Base Rent -or- b) Percentage of gross monthly sales |
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LEASE: GRADUATED and INDEX
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Index Lease:
Alter rent based on . Consumer Price Index . Wholesale Price Index Graduated Lease: . Start at fixed, low rates . Increase at set intervals |
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LEASE: GROUND
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a) Landlord owns Land
b) Tenant owns improvements Often, 99-year lease; common in commercial |
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LEASEBACK, SALE AND
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a) Owner sells land with conditions
b) Buyer must Lease premises to seller for long-term at net-lease basis Advantages: Seller: Frees up capital; Claim rent as expense Buyer: Gains tax shelter; stable tenant; investment appreciates |
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LEASE: SUBLET
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Renter/Lessee
a) Renter/Lessee subleases portion of leasehold interest in i. Premises ii. Term b) Lessee still responsible to Landlord |
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LEASE: ASSIGNMENT
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a) Renter (Assignor) transfers interest and obligation to
b) Another Renter (Assignee) who accepts privity of estate (Property Relationship) with Landlord c) Both renters honor covenants of original lease |
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LEASE: TERMINATION
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a) Expiration (no notice)
b) Agreement (surrender and acceptance) c) Abandonment (10 days in arrears) d) Destruction (total of property) e) Condemantion (eminent domain) f) Merger (betwen Leasehold and Fee Estates; sale, marriage, inheritance) g) Death (of Landlord if based on Life Estate) |
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LEASE: TERMS
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a) Contract Rent: Stated in contract
b) Economic: What property should rent for c) Positive Leasehold: Contract rent is LESS than economic rent (positive for renter) d) Negative Leasehold: Contract rent exceeds the economic rent (negative for renter) |
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LEASE
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Ownership of Estate is Held:
a) Mode b) Manner c) Quality d) Way Parties to a Lease: 1. Lessor (Owner/Landlord): Leased Fee Interst Holder 2. Lessee (Renter/Tenant): Lease Hold Interest 3. Lease is Personal Property: Value is Negotiable 4. Lease is Chattel Real |
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TENANCY: SEVERALTY
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Estate held by One Person, only
* No other person being joined or connected with him. |
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TENANCY: JOINT
Requirements |
A). Fee Simple Purchase Creates
B) Two or More Natural Persons C) For Life, Years or At Will Requirements: Unity of PITT 1. Possession: All hold same until death of one (Note: Passes to survivors and not heirs; AZ requires confirmation of this in deed, though) 2. Interest: All have equal interest (Note: In Common may have varied shares) 3. Title: All hold the property by one and same Title (Note: In Common may use several titles) 4. Time: All are vested at once |
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TENANCY: JOINT
Termination |
Note: Becomes 'In Common' if only a portion is sold, due to Unity essentials.
Joint Tenancy w/ Right of Survivorship is terminated by: 1. Involuntary or voluntary transfer of title 2. Sale or conveyance of one tenant's interest, when only two Joint Tenants exist 3. Partition decree 4. Sale with dividing of procees by Husband/Wife following divorce decree or separation agreement 5. Destruction of Unities of Title |
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EVICTION
Actual and Constructive |
Actual:
Physical dispossession of tenant; varies from constructive, in which tenant is compelled to leave Constructive: (aka Partial) Landbllord makes premises uninhabitable (Ex: changes locks; turns off water; blocks driveway; harasses tenant) a) To claim eviction, thereby relieving tenant from rent obligation, tenant must serve written notice of the constructive eviction and provide reasonable time to cure the defects. |
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FEE SIMPLE: ABSOLUTE
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AKA Freehold (inheritable)
a) Wholly owned b) Freely transferable c) Indefinite peior |
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HOMESTEAD
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Homestead Exemption Protection: (in AZ)
Protects up to $150K equity from unforeseen liens, judgements or bankruptcy a) No protection from mortgages or voluntary liens b) Must occupy home as primary residence c) Upon sale, can hold $150K in Escrow for 18 months to find new house |
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LANDLORD
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An association between two individuals arising from an agreement by which one individual occupies the other's real property with permission, subject to a rental fee.
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LEASE: INTEREST
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property interest arising from the association of a lease with a property
Ex: leased fee estate or leasehold estate |
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LESSOR'S INTEREST
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Present Value of future income from a lease;
Plus, present value (of leased asset's value) at the end of the lease term |
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PARTY WALL
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Created by Agreement, Deed or Implied Grant
Located on or at boundary line between two adjoining properties Equal duty to repair and maintain |
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PARTNERSHIP
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Two or more persons who carry on business as co-owners
a) Can hold title to real property in name of Partnership ie: Tenancy in Partnership b) Flow-through tax responsibility to individuals c) Partnership can maintain RE brokerage as long as all Partners are Brokers |
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PERPITUITY
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Used to valuate RE with Capitalization Rate:
Value = Net Inc / Cap Rate. Use of Cap Rate assumes current income continues in perpetuity; and rents rise with inflation |
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POSSESSORY RIGHTS
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Right to occupy and/or exercise control over
Ex: Possessory interest is distinguished from an interest in title, which may not include right to immediately occupy the property as, for example, a long-term lease would. |
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PROBATE
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Judicial confirmation of decedent's Will, collection of assets, payment of debts and taxes, passing of estate and addressing of possible claims.
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REMAINDERMAN
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Entitled to take estate in remainder
Note: This is a Future Estate, not to be confused with Reversionary Estate, which is a present interest |
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RUNNING WITH THE LAND
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AKA: Appurtenance
Rights or covenants that bind or benefit successive owners. Versus: Easement in Gross, which is personal, and is related to an individual |
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RIGHT OF WAY
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R/W: Right acquired through Usage or Contract to pass over portion of another's property
Private or Public |
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RIGHT, TITLE AND INTEREST
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Used to describe ALL that a grantor or assignor is capable of transferring
Used in Quit-Claim Deeds |
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SERVIENT ESTATE
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Land on which an easement exists in favor of adjacent property (or the Dominant Estate)
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SEPARATE PROPERTY
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Held individually; not in community and not jointly
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SEVERALTY
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Sole ownership of real property
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UNDIVIDED INTEREST
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Each Co-Owner possesses
whole property; fractional share, not specific piece of it Equal = Join Tenancy Unequal = Tenancy in Common (possible) |
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TENANT
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Occupant, one who possesses property
Note: Renter, Life Tenant, Tenant for Years, Lessee Occupancy, though exclusive, is always subordinate to Rights of Owner |
