Real Estate Property Ownership

Front 1

Property

Back 1

can either real or personal. anything that can be owned, i.e. anything that can be excusably possessed, used, controlled, and despised of.

Front 2

Real Property (Real Estate)

Back 2

property that is basically immovable. Includes land and everything that is permanently attached to the land (land, airspace, improvements, appurtenances, minerals below the surface)

Front 3

Legal concept of land ownership

Back 3

this states that a person owns more than just the surface boundaries of the earth. They also own property to the sky and downward to the center of the earth

Front 4

Improvements

Back 4

everything artificial or constructed on the land. Like a side walk or curb…it is constructed on the land and is therefore real property. also includes buildings, fences, walls, orchards, utilities, roads. Additions to these are called fixtures.

Front 5

improved property / unimproved property

Back 5

Land with improvements is called ________ and raw land is called _______

Front 6

Fixtures

Back 6

additions to improvements

Front 7

Appurtanances

Back 7

items and rights that belong to the real property. rights that pass with the land are the right of lateral support and subjacent support, certain easements, air rights, mineral rights, the right to natural drainage, and, in many states, water rights.

Front 8

Deed

Back 8

the document used to transfer rights of ownership (or title) to real property. it will describe the surface boundaries of the property sold, but need not describe improvements, appurtenances, or fixtures.

Front 9

Title

Back 9

The rights of ownership of property

Front 10

Note

Back 10

the owner gives this to a lender when promising to repay a loan if he offers his real property as security. (this in and of itself is not security for a loan)

Front 11

Mortgage or Trust Deed

Back 11

this creates a lien and must come in addition to a note. It is a written contract making real property security for a loan, thus allowing a lender to foreclose on a property.

Front 12

Hypothecate

Back 12

pledge a thing as security for a loan without the necessity of giving it up. for example, when a borrower gives a lender a mortgage or deed of trust, they are _________ the property

Front 13

A Lien

Back 13

A lenders interest in the property. Through this, a lender holds interest in property when an owner of property has hypothecated his land by way of mortgage or trust deed. (person still owns the property and has exclusive rights of possessions)

Front 14

Public Property

Back 14

Real Property owned by the Government

Front 15

Private Property

Back 15

Real Property owned by private parties.

Front 16

Allodial system

Back 16

a system of land ownership that allows land to be owned and controlled by individuals. (as opposed to the feudal system)

Front 17

Freehold Estate

Back 17

under the Allodial system, a land owner has a _________ estate (as in they themselves own it and control it)

Front 18

Fee (or fee simple) estate

Back 18

is a freehold estate (rights of ownership) wherein the owner of the estate can pass the property to others by will (inheritance) (as opposed to life estate)

Front 19

Life Estate

Back 19

a freehold estate (rights of ownership) that does not include the right of inheritance

Front 20

Rights of ownership of the land

Back 20

right to

1) use,

2) possess,

3) enjoy, and

4) dispose of the land in any legal way and to

5) exclude everyone else without rights from interfering.

Front 21

Bundle of rights

Back 21

a landowners right to sell or lease certain rights, while still remaining owner of the land. These rights that may be held or disposed of together or separately (air rights, mineral rights, right to lease property, right to devise the property (aka pass on through will), right to encumber property (e.x. having a lien on it), right to build on it, right to let or to refuse to let others use it.)

Front 22

Encumbrance

Back 22

Anything which affects or limits the fee simple title to or value of property. (e.g. mortgage lien or easement that provide others with irrevocable rights to use the property)

Front 23

Chattel

Back 23

another name for personal property. a moveable article of property. it is moveable because it is not physically or legally tied to the land.

Front 24

Tangible personal property

Back 24

personal property that includes house plants, gardening tools, curtains, space heater. things you can touch and feel.

Front 25

Intangible Personal Property

Back 25

things that are considered personal property with rights in or claims by anyone other than the owner of the real property. e.g When real estate is leased or rented to a tenant, the tenant (the “lessee”) has a leasehold estate in the real property. Since this leasehold estate does not make the tenant the owner, it is personal property. Therefore, a lessee’s interest under any lease is personal property.) The note, promising to pay a debt, given to a lender is personal property of the lender….the mortgage or deed of trust creating a lien

Front 26

Bill of Sale

Back 26

an instrument that conveys title (the rights of ownership) to personal property. It must describe the property, state that the ownership is transferred to the buyer, and be signed by the seller)

Front 27

Security Agreement (formerly chattel Mortgage)

Back 27

A document to be used, as outlined by the Uniform Commercial Code, that is used to create a lien against articles of personal property that have been hypothecated.

Front 28

Pledge

Back 28

When personal property is given up for a loan (like at a pawn shop) and is to be returned upon payment of the loan.

Front 29

Governmental Limitations (or the 4 rights of government on private land)

Back 29

1. Right to tax,

2. eminent domain,

3. escheat

4 .police power. Zoning codes are examples of police power (the right to legislate for the public health, safety and welfare). PETE

Front 30

Police Power

Back 30

the right of the government to enact legislation for health, safety, and general welfare of public. Also involves subdivision regulation, zoning, and building codes.

Front 31

Eminent Domain

Back 31

The right of the Government to acquire ownership of privately help estate for public use, regardless of owners wishes. The act of taking the property is handled by Condemnation Proceedings. People need to be properly compensated.

Front 32

Taxation

Back 32

Government has the right to support itself through taxes

Front 33

Escheat

Back 33

The right of the Government to acquire property when the owner dies intestate (without a will) and has no heirs eligible to inherit the property.

Front 34

Actual Severance

Back 34

Real property that is converted into personal property by way of physically severing it from the land.

Front 35

Constructive Severance

Back 35

real property that is converted into personal property by intent only . . like selling trees for lumber while they are still growing, or selling air rights, or mineral rights.

Front 36

Attachment

Back 36

when personal property becomes real property

Front 37

Fixture

Back 37

when personal property is attached to a building so that in the legal sense it becomes real property / an article of personal property that has become part of the real estate by virtue of its attachment to the real estate (cabinets, custom drapes, shelves, hot water heaters, stoves) . . . house keys are also a ________.

Front 38

MARIA

Back 38

Tests to determine whether or not an article of personal property has become a fixture

* - Method of Attachment - also known as method of annexation (cement, nails, bolts??? would removal cause damage to property?
* - Adaptation - are the items essential to the purpose for which the building was intended? where they custom built for the building?
* - Relationship Between Parties - there are all sorts of rules, but for Land lord / tenant, Domestic fixtures, agriculture fixtures, and trade fixtures stay with the tenant. If not picked removed from property in reasonable time, then they become the owners.
* - Intent of Annexor - what was the intention of the person who attached the fixtures (the annex or) . . . like a light bulb screwd into a ceiling fan . . .that becomes a fixture, or wall to wall carpeting, since it was cut for a certain room.
* - Agreement - this is the agreement between parties involved. Basically just getting an agreement in writing before land lord and tenant enter into a lease, as there may be provisions stated for who owns what fixtures.

Front 39

Domestic Fixtures

Back 39

items installed by the tenant to make the dwelling more comfortable and attractive during the lease period

Front 40

Agriculture fixtures

Back 40

fixtures installed by the tenant that allows him to farm or graze the land that has been leased

Front 41

Trade Fixtures

Back 41

Items such as machinery, equipment, countertops, shelves, installed by tenant for use in the business conducted on the leased premises. By law, it is personal property and not an appurtenance to real property

Front 42

Emblements

Back 42

crops that are grown on land and require annual planting and cultivation. These crops would be considered personal property , therefore not real property, and therefore not a fixture. This word can also mean the right of the tenant farmer to go on the land and harvest the crop. =

Front 43

Appurtanant

Back 43

Rights ____________ to the land include: lateral support, sub adjacent support, natural drainage, air rights, easements, water and mineral rights.

Front 44

Lateral Support

Back 44

Appurtenance that guarantees support from the side. In effect, an owner has legal protection against acts of neighbors that would cause damage to his property

Front 45

Subadjacent Support

Back 45

appurtenance that guarantees protection of not having ones property disturbed by losing support from below the surface.

Front 46

Natural Drainage

Back 46

appurtenance that provides that a property owner has the right to natural drainage ( so a persons neighbor can not dam the flow of water, change the natural flow of water, etc)

Front 47

Air Rights

Back 47

the owner of the land owns the rights to the air above their land. horizontal divisions of this are used to build condominiums and the person who buys the condo essentially owns a cube of air space enclosed by walls

Front 48

Mineral Rights

Back 48

a right to sub surface minerals under a persons land.

Front 49

Easement

Back 49

An irrevocable right to use another persons land for a particular purpose. Examples of this are: a right of way to cross a neighbors property, a party wall connecting adjoining dwellings, passages for light, air, and heat from or across anthers land. They are appurtenant and stay with the land.

Front 50

Water Rights

Back 50

water is considered owned by general public, so anyone can use it for navigational or recreational uses. but a private person may obtain the right to use the water in such a way as to reduce the water flow. (riparian right)

Front 51

Riparian Right

Back 51

In a state operating under this doctrine, the person owning the land over which the water flows or bordering on a waterway, such as a river or stream, has the right to use/take that water. The owner does not have the right to overuse or divert the water, however. The owner automatically gets the rights because of the location of his land, therefore, the rights are not listed in the deed that gives owner to title of property. Automatic, reasonable use, not recorded

Front 52

Prior Appropriation

Back 52

in a state operating under this doctrine, a riparian owner does not automatically have the right to use the water. Instead the state grants (appropriates) rights to use water to riparian and non riparian owners. Application process, specified amount, recorded

Front 53

Common Interest Subdivisions

Back 53

in a ________ ________ _________, owners own interest in or portions of the property in common. These include planned unit developments (PUD), townhouses, cooperatives, and condominiums. All have common recreation areas and reduced individual maintenance requirements

Front 54

Planned Unit Development (PUD)

Back 54

in a _______ _______ ________, each lot is sold separately. In addition, open space property and property used in common by property owners (e.g., club houses or pool) is owned by a homeowners association (HOA). Many have cluster zoning.

Front 55

Home Owners Association (HOA)

Back 55

In a planned unit development (PUD), All homeowners must me members of this, which effectively makes them part owners of open space property and property in common.

Front 56

Townhouses (rowhouses)

Back 56

dwellings constructed side by side with abutting walls (shared walls). Each owner owns the lot under the unit and the unit, just as if it were detached. with the party wall, each owner owns the portion of the wall on his unit , and has a party wall easement for support in the other unit.

Front 57

Cooperative

Back 57

In this arrangement, a building containing a number of living units is owned by either a trust or a corporation. Either way, the purchaser has personal property interest in the entity owning the building and not real property or fee interest in any of the units. Each owner (really a tenant) is granted a Proprietary Lease to occupy the unit, and gets a pro rata share of the property tax bill, maintenance, etc. (If title were held by a trust, a person wanting to occupy one of the living units would purchase a certificate of beneficial interest in the trust. If title were held by a corporation (as is the case with most cooperatives), a person would purchase shares of stock in the corporation that owns the building. More desirable units require the purchase of more shares of stock than the less desirable ones.

Front 58

Propriety Lease

Back 58

In a Cooperative, the interest is personal property, but the owner will get the exclusive right to occupy one of the units by way of a long term lease, also known as a ____________

Front 59

Condominiums

Back 59

may be residential, industrial, commercial, or resort properties. They may be any building type (detached, semi detached, multistory). What makes the property a __________ is the facet that the units are sold separately, but the land is owned by all unit owners in common. the owner of a __________ unit has a free-hold, fee simple interest in the unit (just not the land) Unit owners are responsible only for those liens (e.g., for construction, mortgage indebtedness and property taxes) involving their own units and the fee to cover a proportionate share of the expenses of the property held in common. Each unit owner will receive a separate tax bill that covers the value of his unit and his proportionate share of the commonly held property.Liens against the individual units or unit owners are not liens against the entire property The purchaser of the unit would receive fee title to the air space within the walls, and an un-devided fractional/percentage interest in the land.

Front 60

Common Elements

Back 60

All portions of a condominium other than the units (land, yard, parking, janitors quarters. they may be general or limited. They are owned by the owners of the units of a condominium in the form of percentage or fractional interest

Front 61

Limited common elements

Back 61

common elements received for the exclusive use of one or more units. (party walls, patios, reserved parking spaces)