Nevada - National Study Guide - Property Ownership / Land Use

Front 1

limited liability company

Back 1

not a corporation, partnership, or limited partnership. Neither, members or managers are liable for company debts, obligations or liabilities. Regarding licensure, a limited liability company must designate one of its managers to act for it. The designated manager must (as with the corporation) be a licensed broker as shown in the records of the commission.

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more than one owner

Back 2

there are two forms of ownership by more than one owner. With either form, each owner has the right to full access & use of the property.

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tenancy in common

Back 3

ownership by two or more without rights of survivorship. With tenancy in common, each tenant in common may have a different percentage of ownership in the property. If an owner dies, his interest is disposed of according to his will to his DEVISEES or TO HIS HEIRS under the statues of decent & distribution, not the other owner as with joint tenancy. If the deed conveying the property conveys to two or more with nothing else being stated, we know the ownership is tenancy in common because the creation of joint tenancy must be specifically stated in the deed of conveyance, that all agree to take ownership as joint tenants.

Front 4

tenancy in common with a separate agreement for use is a time share

Back 4

individual owners will use the property for a specific amount of time for specificed number of years

Front 5

joint tenancy

Back 5

ownership of REAL PROPERTY by tow or more person, each of whom has an undivided, equal, ownership interest WITH the right of survivorship. If one dies, the remaining joint owners equally share the portion previously held by the joint tenant died. To establish joint tenancy the deed must specially state the intent to take ownership as JOINT TENANTS. As joint tenants dies, THE LAST REMAINING SURVIVOR WILL TAKE OWNERSHIP IN SEVERALTY & becomes the sole owner.

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Tenancy by the Entirety

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ownership by a husband & wife with rights of survivorship

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in trust

Back 7

ownership by a third person for the benefits of another. The trustor covey's property to a trust, the trustee holds & manages the trust fro the benefit of the beneficiary. The TRUSTEE is a FIDUCIARY TO THE BENEFICIARY & must act in the beneficiary's best interest. If the trustor coveys REAL PROPERTY to a trust is is a DEED IN TRUST. Don't confuse this term with a DEED OF TRUST.

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partnership

Back 8

an association of two or more people who operate a business an co-owners & share in the business profits & losses

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limited partnership

Back 9

one party (the general partner) organizes, operates & is responsible for the entire syndicate. The other members of the partnership are passive investors with no voice in the organization & direction of the organization (limited partners). Each limited partner stands to lose only as must as he/she invested. The general partner is totally responsible for any excess losses incurred by the investment.

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general partnership

Back 10

all partners participate in the operation of the business & may be held personally liable for business losses & obligations.

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community property

Back 11

all property acquired by a HUSBAND & WIFE after marriage is community property UNLESS it is acquired by gift, will, or inheritance. Upon the death of one's spouse, the surviving spouse retains one half of the community property. The decedent's half will PASS BY DEVISED or if the DECEDENT IS INTESTATE, their one half of the community property & all separate property will pass by the Statues of Decent & Distribution. When community property is sold or mortgaged, both spouses must sign the documents. Both signatures are required to convey homestead rights as well. The interest a window has in her DECEASED HUSBAND's ESTATE WOULD BE DOWER RIGHTS. Courtesy rights would be the husband's rights.

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ownership

Back 12

of the land can by by one owner or the land may be divided into

1. surface;

2. subsurface; and

3. air rights

with a different owner owning each

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homestead

Back 13

is a LIFE ESTATE in a family home

The homestead is protected from forced sale by general creditors. The homestead may be selected from separate property of either spouse or from their community property. The homestead may be sold for liens against the property including:

1. mortgages;

2. taxes;

3. merchanic/materialman liens;

4. equity liens;

5. refinance of purchase money lien; or

6. failure to pay HOA mandatory assessments.

Homestead rights may end upon death of the owners, sale of the property, or abandonment by the owners. Homestead rights do not terminate on the death of the spouse & extend to minor children until they reach the age of 18. Both husband & wife must sign to sell the property.

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freehold estates

Back 14

estates of indeterminable length, existing for a lifetime or forever. These incude

....

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fee simple estate

Back 15

absolute ownership with all the rights associated with ownership of REAL PROPERTY. Best kind of ownership but still subject to certain limitations. Highest types of ownership interest recognized by law.

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life estate

Back 16

the three parties to life estate are

1. GRANTOR the fee simple owner who gives the life estate to the grantee;

2. GRANTEE (life tenant); &

3. REMAINDERMAN who receives the reversionary or remainder interest when the life estate ends;

4. conventional - life estate is a freehold estate limited in dureation to the life of the grantee. The life tenant (grantee) enjoys just as a fee simple. They pay taxes, maintenenace, & insurance & enjoy that ownership as long as they live;

5. a pur autre vie - LIFE ESTATE is based on the life of a third party rather than the life of te grantee & therefore ends on the death of that party rather than on the death of the grantee. Unlike other freehold estates, A LIFE ESTATE IS NOT INHERITABLE. It passes to future owners according to the provisions of the life estate & always ends on the death of the party whose life it is vested in. When the life tenant (or third party) dies, the estate ends & ownership passes to another individual or returns to the previous owner, regardless, the final owner, when the life estate comes to an end, is known as the REMAINDER MAN. While the life tenant enjoys all the benefits of ownership he/she can not waste the land or infringe on the remainder man's rights.

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defeasible fee estate

Back 17

the holder of the estate has fee simple title that may end when an event does or does not occur. When the deed conveyed the property fromt he grantor to the grantee, a condition was speified int he deed that would cause the estate to terminate & return to the original grantor or his heirs or devisees. There are two type of defeasible fee estates.

1. determinable fee - terminates when the event occurs; the property automatically reverts ownership back to the original grantor or his heirs or DEVISEES.

2. fee simple subject to condition subsequent The only difference between the two is that when the condition is violated, it is necessary for the original fee simple owner or his heirs go to court to exercise his right to regain ownership.

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leasehold estate

Back 18

conveys rights of possession but not rights of ownership. A lease conveys possession for an amount of time for consideration (usually rent). There is always a lessor & a lessee (landlord/tenant). Leaseholds are the other broad classification of estates in land. It is an interest in the property of another. Those who lease property for owners or help tenants secure property to lease must have a REAL ESTATE license.

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rule against perpetuities

Back 19

is designed to put a time limit on the vesting of estate. It general stops someone from willing away parts of an estate to future generation of unborn heirs.

EXAMPLE Let's say the time limit is 15 years & you leave part of your estate to an unborn child. 15 years pass from your death & that child has not been born yet. That part of the estate will be declared void & the courts will decide how that part of the estate will vest.

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valid legal descriptions

Back 20

legal descriptions should only be prepared by a surveyor or a title attorney

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metes & bounds

Back 21

terminal points & angels; or

angels or compass points

the description generally starts with a BENCHMARK - permanent reference mark &

MUST RETURN TOT HE POINT OF BEGINNING (POB).

In a metes & bounds description, the surveyor sets out to describe the perimeter of the property in terms of feet, distance, direction, degrees, & compass points. The survey fails to close if not returning to the point of beginning, therefore it would not comletely encircle a parcel of real estate.

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Lot, block & subdivision

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recorded plat

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retangular survey system or U.S. government survey

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longitudes & latitudes,

meridians & baselines

township tiers, & township squares

36 sections in a township

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monuments

Back 24

physical markers, either man-made or naturally occurring, that mark the corners of the property. natural monuments take precedent over linear measurements

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complete legal descriptions can be obtained from

Back 25

1. title companies;

2. recorded deeds;

3. recorded deeds of trust;

4. recorded mortgage

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survey

Back 26

the physical limits to where the property rights extend

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datum

Back 27

a marker used in the survey of elevations

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government right in land

Back 28

individual ownership rights are subject to certain powers, or rights are subject to certain powers, or rights, held by federal, state, & local governments intended to promote the general welfare of the community

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taxation

Back 29

a property owner must pay ad valorem taxes on an annual basis for all real estate.

AD VALOREM means "according to value".

The appraisal district in which the property is located sets the value of all property int he district. This charge is to raise funds to meet public needs of the government. When an improvement is necessary - highway widening a SPECIAL ASSESSMENT TAX may be levied against all those that benefit from the improvement. When either of these taxes is not paid, they become the primary lien on the property

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highest priority lien

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when taxes are unpaid, they become an automatic lien & move to first position regardless of the recorded liens. There property is then sold to satisfy the liens

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taxes

Back 31

create an encumbrance - financial cloud on title

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tax abatement

Back 32

eliminates or reduces taxes to new companies moving into an area

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police power

Back 33

the right of the government to place reasonable restrictions on privately held land

EXAMPLES of police power exercised are zonign ordinances, building codes, environmental laws

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eminent domain

Back 34

the right of government to take private property for public use, with just compensation paid tothe owner. If the owner & condemning entity cannot agree as to FAIR MARKET VALUE then a CONDEMNATION SUIT is filed & the courts decide on fair value.

INVERSE CONDEMNATION occurs when the improvement may not take the property but causes the subject property to suffer a loss in value of 25% or more then the condemning entity must pay the owner for that loss.

Front 35

land

Back 35

everything from the center of the earth upward. It includes

1. subsurface;

2. surface;

3. air above the earth.

It does not include anything made by man

Front 36

real estate

Back 36

land PLUS improvements MADE BY Man including

1. buildings;

2. highways;

3. utilities.

Front 37

real property

Back 37

land PLUS improvements MADE BY Man

PLUS the legal rights to the land.

This includes

1. right to sale;

2. exchange;

3. mortgage;

4. give it away;

5. leave it in your will to another;

6. and etc.,.

Front 38

et al means?

Back 38

and the rest

latin abbreviation used in traditional legal language to refer to others in a contract. Its main benefit is to name just one or two people out of a group so a person doesn't have to write them all out every time.

Front 39

bundle of rights

Back 39

description of all the rights held by a property owner of real property. However, no owner even enjoys the full bundle of rights. There are always restrictions placed on these rights by governments that have jurisdiction over the property

Front 40

possession

Back 40

to occupy the property and/or use as your own

Front 41

control (not absolute)

Back 41

subject to the rights of

1. taxation;

2. police power;

3. eminent domain, etc.,

all property is subject to taxation, the right of the government to "take" the property at a fair price for he betterment of the general population (eminent domain), & the right to control the use of the property for legal purposes

Front 42

enjoyment (quiet)

Back 42

that no one has a superior claim on the property

Front 43

disposition

Back 43

sell it, lease it, vacate it, mortgage it, cultivate it, gift it, etc.,.

Front 44

exclusion (make it private)

Back 44

the right to privacy, to stop others form entering your property without your permission

Front 45

allodial system of title

Back 45

used in the United States to descript real property ownership. The owner has complete & absolute control of the real estate. The government has no claim to any ownership rights of privately owned real estate & the owner has no obligations to the government

Front 46

land characteristics

Back 46

ownership of land can be laterally severed into

1. subsurface rights;

2. surface rights; and

3. air rights

the owner of the surface rights does not always control the subsurface or air rights to the property. The two broad categories of land are

1. physical characteristics. those features that all land possesses, &;

2. economic characteristics. those feature that contribute to the value of any given parcel of land.

Front 47

physical

Back 47

land is

1. immobile (geographic location is FIXED - can never change);

2. indestructible; &

3. unique; or

4. non-homogeneous (all parcels differ geographically & each has its own location), no two parcels are identical.

Front 48

Define immobile

Back 48

geographic location is FIXED - can never be changed

Front 49

Define non-homogeneous

Back 49

all parcels DIFFER geographically & each has its own location. No two parcels are identical.

Front 50

economic

Back 50

1. scarcity (although there is a substantial amount of unused land, supply in a given location can be limited) such as a downtown area

2. improvements (placement of an improvement affects value & use - a property with a view may be worth more than a property with no view

3. permanence of investment (improvements represent a large fixed investment) - a property with a large custom home will be more valuable than a property with a mobile home.

See Situs as the most important (LOCATION, location, location)

Front 51

Define scarcity

Back 51

although there is a substantial amount of unused land, supply in a given location can be limited. such as a downtown area

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Define improvements

Back 52

placement of an improvement affects value & use - a property with a view may be worth more than a property with no view

Front 53

Define permanence of investment

Back 53

improvements represent a large fixed investment - a property with a large custom home will be more valuable than a property with a mobile home.

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situs

Back 54

referred to as area preference, people's choice & preferences for a given area. Location, location, as areas change, people's desire to be in a given location can change.

**This is the most important economic characteristic of land.

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chattel

Back 55

referred to as a PERSONAL PROPERTY. It's basically MOVABLE.

EXAMPLES: furniture, appliances & ECT.

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bill of sale

Back 56

used to TRANSFER PERSONAL PROPERTY

Front 57

fixture

Back 57

PERSONAL PROPERTY, which has been converted to REAL PROPERTY by method of

1. attachment;

2. character & adaptation; or

3. contractual intent of the parties.

EXAMPLES: blinds, ceiling fans, curtain rods.

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appurtenances

Back 58

to land is anything used with the land for the benefit of its owners

EXAMPLES: roadways, easements, & condominium parking areas

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emblements

Back 59

cultivated crops are call emblements. They are considered part of the land until time that they are harvested & then they become PERSONAL PROPERTY

Front 60

trade fixtures

Back 60

articles installed by a tenant & removable by the tenant before the lease term expires. If not removed, they become the REAL PROPERTY of the building owner by 'accession'.

EXAMPLE: store shelves, bowling alleys, restaurant equipment

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encumbrances

Back 61

any claim, lien, charge, or liability attached to & binding on REAL PROPERTY, is an encumbrance. Encumbrances limit or affect the use &/or title but do not prevent alienation (transfer of ownership). There are TWO general classifications of encumbrances

1. liens that affect the title, such as

a. judgement;

b. mortgages;

c. mechanics' lien; &

d. other liens which are charges on property used to secure a debt or obligations; &

2. encumbrances that affect the physical condition of the property, such as

a. restrictions;

b. encroachment;

c. easements.

Front 62

What are the TWO general classifications of encumbrances

Back 62

1. liens that affect the title, such as

a. judgement;

b. mortgages;

c. mechanics' lien; &

d. other liens which are charges on property used to secure a debt or obligations; &

2. encumbrances that affect the physical condition of the property, such as

a. restrictions;

b. encroachment;

c. easements.

Front 63

easement

Back 63

non-possessory interest in land.

An easement is classified as an interest in real estate but is NOT an estate in land. The party that owns the property still has full ownership; the party that uses the easement only has the right to pass over or use the other party's land. Easements are classified as either

1. appurtenant; or

2. in gross

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easement appurtenant

Back 64

annexed to the ownership of another's parcel of land & RUNS WITH THE LAND.

When land is transferred from one owner to another, the new owner takes ownership subject to the easement. There must be two adjacent tracts of land owned by different parties. The tract that benefits from the easement is the DOMINANT ESTATE (tenement). The tract on which the easement exists & is burdened by it is the SERVIANT ESTATE or TENEMENT. The party that benefits from the use of the easement (DOMINANT ESTATE) must maintain the easement.

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easement by necessity

Back 65

created when owner sells a property that has no access to a street or public right-of-way except over the seller's remaining parcel of land. All owners have right to INGRESS to & EGRESS from their land & cannot be LANDLOCKED. It would be necessary for the seller to provide an easement whereby the buyer can INGRESS & EGRESS from the land.

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easement by prescription

Back 66

aka prescriptive easement

when someone has used another's land for a certain time. The use must be open (NOT SECRETIVE), visible, notorious, & without the owner's approval but where the owner readily could learn of it

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license

Back 67

personal privilege to enter land & can be given ORALLY or INFORMALLY. Usually a license is given rather than a personal easement in gross. A license is permission & can be given & can be cancelled by the property owner.

EXAMPLE: Permission to park in a neighbor's driveway.

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easement in gross

Back 68

personal in nature & DOES NOT PASS WITH THE LAND. Common examples are power line easements, billboard site easements, & the like. Commercial easements in gross may be assigned or conveyed & may be inherited. however, personal easements in gross usually are not assignable & terminate on the death of the easement owner.

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How may an easement be created?

Back 69

by express grant (written document) or in a deed, necessity, express reservations, implied grant, implied reservations (implied is created when actions & conduct demonstrate intent), prescription, condemnation, by the sale of land with reference to a plat, or by ESTOPPEL (the owner of the SERVIENT TENEMENT orally promises passage then subsequently changes his mind & refuses access, thereby damaging the owner of the DOMINANT TENEMENT).

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How may easement be terminated?

Back 70

They may be terminated when the purpose for which they were created ceases, by merger, by release (DOMINANT TENANMENT releases SERVIENT TENEMENT), or by abandonment (discontinued use coupled with the intent to never use again).

Front 71

restrictions

Back 71

limits the use of the property such as deed restrictions or restrictive covenants. Deed restrictions & restrictive covenants have basically the same meaning.

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encroachment

Back 72

fixture or structure which invades a portion of a property belonging to another. To determine an encroachment, a survey should be done

Front 73

open beach law

Back 73

the public is to have perpetual right (granted through prescription, dedication or presumption) to use public beaches. Even though fee simple title to a lot belongs to an individual

Front 74

riparian rights

Back 74

permits owner of land adjacent to a non-navigable stream, ownership of the land under the stream or river to the exact center of the waterway. you also have the unrestricted right to the water for limited domestic purposes. Owners of land adjacent to navigable streams or rivers own only up to the mean vegetation line & the remainder belongs to the public

Front 75

littoral rights

Back 75

permits the owner of land on lakes & bays ownership to the mean vegetation line. you have the unrestricted right to enjoy the available water for domestic purposes but own the land adjacent to the water only up to the mean vegetation line. All land below this point is owned by the government or other public authority

Front 76

appropriation water rights

Back 76

water use is decided by the State rather than the adjacent owner. The owner of land adjacent to a water source enjoys use of the water for LIMITED DOMESTIC purposes. If he/she wishes to use the water for another purposes such as irrigating their rice field, they must apply for & get the appropriate permit from the State. Priority of water rights is established by the date the permit was recorded. If the property was patented (granted) into private ownership after December 19, 1914, this rule applies.

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underground water rights

Back 77

owners have a right of correlative use of the water under their land. They may retrieve only the water for which they have a beneficial use for on their own property.

Front 78

liens

Back 78

a charge or claim which one person has upon the property of another as security for a debt or obligation. A lien is created by agreement of the parties, like a mortgage, or by operation of law, like a tax lien, A lien may be GENERAL or SPECIFIC. A lien may be VOLUNTARY or INVOLUNTARY. A voluntary lien is created when someone takes out a mortgage loan. An involuntary lien is created by law or statute. Liens are appurtenant & stay with the property & can bind successive buyers if not cleared at closing. Title insurance will not protect against unrecorded liens as part of the standard coverage.

Front 79

involuntary liens

Back 79

while a VOLUNTARY LIEN is created by an action on the part of the lienee such as taking out a mortgage loan to finance the purchase or a home improvement loan; An involuntary lien takes no action on the part of the lienee & is created by statue, an operation of law, or the decision of courts of equity. An involuntary lien can either be statutory or equitable. STATUTORY LIENS are created by state law such as the right of the assessing entity (local municipalities, counties, & school districts) to charge tax to property owners to pay for the costs of operating the governments & public schools.

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equitable liens

Back 80

equitable liens arise out of fairness or what is equitable & is based on common law.

-A VENDOR LIEN (seller's claim) would be entitled to a seller who transfers ownership to a buyer by deed & then the buyer does not pay for the property as agreed. The seller would be entitled to place a lien on the property for damages suffered.

-A VENDEE (buyer's claim) lien would be entitled to a buyer who pays the purchase price for the property then the seller fails to transfer legal title to the buyer. Both liens arise based on equity or fairness (custom) & not by specific statue of state law.

Front 81

what is a vendor lien

Back 81

seller's claim

would be entitled to a seller who transfers ownership to a buyer by deed & then the buyer does not pay for the property as agreed. The seller would be entitled to place a lien on the property for damages suffered.

Front 82

what is a vendee lien

Back 82

buyer's claim

would be entitled to a buyer who pays the purchase price for the property then the seller fails to transfer legal title to the buyer. Both vendor (seller's) & vendee (buyer's) liens arise based on equity or fairness (custom) & not by specific statue of state law.

Front 83

general liens

Back 83

attached to all property not exempt from forced sale (homestead is exempt)

Usually effects ALL of the debtor's property, both real & personal , to include judgments, estate & inheritance taxes, debts of a deceased person, IRS taxes, & federal judgment liens

Front 84

specific lien

Back 84

attached to one or more listed properties. In other words, specific liens usually are secured by a particular parcel of real estate & affect only that property. These include mechanic's liens, mortgages, taxes, special assessments, vendors' liens, vendees' liens, surety bail bond liens & attachments.

Front 85

mechanic's lien (also called "mechanics & material man)

Back 85

a claim for the purpose of priority payment for work and/or materials furnished in erecting or repairing a building (M&M Lien). A type of specific, involuntary, statutory lien. The lien is filed against the land & improvements. A mechanic's lien is granted by statue; no such lien existed under common law.

Front 86

tax lien

Back 86

a statutory lien imposed against real property for nonpayment of taxes. A tax lien remains on the property, until paid, even if the real estaet is conveyed to another

Front 87

tenancy in severalty

Back 87

if the ownership of a property is held by one entity, the estate is said to be a tenancy in severalty or ownership in severalty. The rights of all others have been SEVERED AWAY. The sole owner could be a person, partnership, corporation or any other business form but still, one owner.

Front 88

more than one owner

Back 88

there are two forms of ownership by more than one owner. With either form, each owner has the right to full access & use of the property.

Front 89

tenancy in common

Back 89

ownership by two or more WITHOUT rights of survivorship. With tenancy in common, each tenant in common may have a different percentage of ownership in the property., If an owner dies, his interest is disposed of according to his will to his devisees or to his heirs under the statutes of decent & distribution, not the other owner as with joint tenancy. If the deed conveying the property conveys to two or more with nothing else being stated, we know the ownership is tenancy in common because the creation of joint tenancy must be specifically stated in the deed of conveyance, that all agree to take ownership as joint tenants.

Front 90

tenancy in common with a separate agreement for use is a time share

Back 90

individual owners will use the property for a specified amount of time for a specified number of years.

Front 91

joint tenancy

Back 91

ownership of real property by two or more persons, each of whom has an undivided, EQUAL, ownership interest WITH the right of survivorship. If one dies, the remaining joint owners equally share the portion previously held by the joint tenant who died. To establish joint tenancy the deed must specifically state the intent to take ownership as joint tenants. As joint tenants die, the last remaining survivor will take ownership in severalty & becomes the sole owner

Front 92

tenancy by the entirely

Back 92

ownership by a husband & wife with rights of survivorship

Front 93

in trust

Back 93

ownership by a third person for the benefit of another. The trustor covey's property to a trust, the trustee holds & manages the trust for the benefits of the beneficiary & must act in the beneficiary's best interest. If the trustor coveys real property to a trust it is a DEED IN TRUST. Don't confuse this term with a DEED OF TRUST.

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partnership

Back 94

an association of two or more people who operate a business as co-owners & share in the business profits & losses

Front 95

limited partnership

Back 95

one party (the general partner) organizes, operates & is responsible for the entire syndicate. The other members of the partnership are passive investors with no voice in the organization & direction of the organization (limited partners). Each limited partners stands to lose only as much as he/she invested. The general partner is totally responsible for any excess losses incurred by the investment.

Front 96

general partnerships

Back 96

all partners participate in the operation of the business & may be held personally liable for business losses & obligations.

Front 97

limited liability company

Back 97

not a corporation, partnership, or limited partnership. Neither, members or managers are liable for company debts,obligations,or liabilities. Regarding licensure, a limited liability company must designate one of its managers to act for it. The designated manager must (as with the corporation) be a licensed broker as shown in the records of the commission.

Front 98

community property

Back 98

all property acquired by a HUSBAND & WIFE after marriage is community property unless it is acquired by gift, will or inheritance. Upon the death of one's spouse, the surviving spouse retains one half of the community property. The decedent's half will pass by devised or if the decedent is intestate, their one half of the community property & all separate property will pass by the Statues of Decent & Distribution. When community property is sold or mortgaged, both spouses must sign the documents. Both signatures are required to convey homestead rights as well. The interest a widow has in her deceased husband's estate would be dower rights. Courtesy rights would be the husband's rights.