Property Ownership

Front 1

2 Classes of property

1. Real Property

Back 1

The interest, benefits and rights in ownership. Ex: rights of possession, control, enjoyment and disposition.

Front 2

2 Classes of Property

2. Personal Property

Back 2

All the property that can be owned. (Movable items called chattels). Ex: chairs, tables, clothing, money, bonds.

Front 3

Fixtures

Back 3

Personal property that becomes real property by law because it has been so attached and permanently affixed.

Ex: radiators, heating, systems, plumbing, elevator equipment, kitchen cabinets, light fixtures.

Front 4

Legal test of a Fixture

M.A.R.I.A

Back 4

Determines whether an item is a fixture.

M-method of annexation/attachment. Can it be romoved without causing damage or can the damage be fixed.

A-adaptability of the item , did it become a fixture after attachment.

R-relationship of parties courts favor tenants and buyers over landlords and sellers

I-intention of person placing item.

A-agrrement if parties.

Front 5

Trade Fixture

Back 5

Property used in the course of business. An article owned by a tenant attached to a rented space for use of conducting their business. Chatel fixture. Ex: hydraulic lifts in auto shop, dinning booths in resturants, sheds and coops on farms. Must be removed the last day the property is rented or it becomes property of the landlords by accession. Tenants responsible for damages caused by removal

Front 6

3 Physical Characteristics of land

1. Immobility

Back 6

The geographic location of land can never be changed. It is fixed therefore I mobile.

Front 7

3 Physical Characteristics of Land

2. Indestructibility

Back 7

Land is indestructible, the geographic location will always remain no matter its condition by erosion, flood, paved.

Front 8

3Physical Characteristics of Land

3. Uniqueness

Back 8

Nonhomogenity no two parcels of property are exactly the same or in the same location.

Front 9

4Economic Characteristics of Land/Real Estate that Effects its Value z

1. Scarcity

Back 9

The total amount of land is not limitless. The supply in a given location that is suitable for a particular use is finite/limited/measurable.

Front 10

4Economic Characteristics of Land/Real Estate that Effects it's Value

2. Improvements

Back 10

Can effect the lands value and use as well as neighboring by facts and communities. Ex: waste dumps, malls, power plants

Front 11

4Economical Characteristics of Land/Real Estate that affects its Value

3. Permanence of Investment

Back 11

The capital and labor used to build an improvement represent a large fixed investment. The return on investments tends to be long term and stable.

Front 12

4Economic Characteristics of Land/Real Estate that Affects its Value

4. Area of Preference

Back 12

Situ's. Location, location, location. Preference for a specific area. Based on convenience, reputation, and history. The most important economic characteristic of land.

Front 13

Legal Property Description

Back 13

A detailed way of describing land, for documents like deeds and mortgages that will be accepted in a court of law. Based on information collected through a survey.

Front 14

Legal Property Description

1. Metes and Bounds

Back 14

To measure and linear direction. Starts at a designated place called POB point of beginning, and the POB is also where the description ends. Monuments/landmarks (iron pins, concrete post) are used to identify the POB.

Front 15

Legal Property Description

2. Rectangular (Government) Survey

Back 15

A system established by the federal government, providing for surveying and describing land by reference to principle meridians and base lines, by dividing the land into rectangles.

Front 16

Legal Property Description

3. Lot and Block

Back 16

Recorded plat. This system uses numbers referred to in a plat map filed in the records of the county where the land is located. A map of a town, a section, or a subdivision indicating the location and boundaries of individual properties.

Front 17

Sections

Back 17

Townships in sections of 36 that ate one square mile= 640 acres, with 43,560 square feet in each acre. Numbered 1-36 from right to left than from left to right. By law each section 16 was set aside for schools.

Front 18

Usage of Legal Property Description

Back 18

Measures property rights. What the owner or buyer has a right to. Prepared by a professional surveyor and sketch which shows the location and deminsion of the land. Copied with extreme care.

Front 19

Physical Descriptions of Property and Improvements

Back 19

Must be explicitly identified. Items that will be roved must be specified. Improvements can affect the value.

Front 20

Mineral (Land) Rights

Back 20

Ownership rights in a parcel of Real Estate that are limited to the surface of the earth are called surface rights. The rights to the natural resources below the earths surface. Natural resources that can be leased or sold separately from surface rights. (Oils, coal, gas).

Front 21

Air Rights

Back 21

The rights to use the space above the earth. May be sold or leased independently, to construct tall buildings. The developer must also purchase small portions of the lands surface for the buildings foundation support.

Front 22

Water Rights

Back 22

Common law or stutory rights held by owners of land adjacent to rivers, lakes, or oceans and are restrictions on the rights of land ownership.

Front 23

Water Right

1. Riparian Rights

Back 23

Common law rights granted to owners of land along the course of a river, stream, or similar flowing body of water. Has unrestricktef right to use the water, as long as use does not interrupt or alter the flow or contaminate the water.

Front 24

Water Rights

2. Littoral Rights

Back 24

Which belongs to owners of land that borders a commercially navigable, lake, sea, and ocean. Owners enjoy unrestricted use but own the land adjacent to the water only up to the average high water mark. All land below that point is owned by the government.

Front 25

Water Rights

3. Doctrine of Prior Appropriation

Back 25

In states where water is scarce, ownership and use of water are determined by government. The right to use any water is controlled by the state rather than by the landowner. A landowner must demonstrate a state if urgency that the owners plans are for beneficial use such ad crop irrigation.

Front 26

Non-Navigable waterways

Back 26

Owners own the land under the water to the exact center of the water way.

Front 27

Navigable Waters

Back 27

Waters are owned only up to the waters edge.

Front 28

Accretion

Back 28

Increase in land resulting from the deposit of soil. Owner is intitled to all land created through this process.

Front 29

Erosion

Back 29

An owner may lose land. The gradual wearing away of the land by natural forces. (Wind, rain, flowing water), slowly over years.

Front 30

Avulsion

Back 30

The sudden removal of soil by an act of nature (earthquake, mudslide). Quick loss.

Front 31

Encumbrance

Back 31

Anything such as a mortgage, tax, or judgement lien, easement or restriction on the use of the land, or an outstanding dower right that may deminish the value or use of the property.

Front 32

Lien

Back 32

A claim against the property that provides security for a debt or an obligation of the owner, if not paid, a court order for forced sale of the property to cover cost.

Front 33

Types of liens (VISE)

1. Voluntary Lien

Back 33

Created intentionally by the property owners action (taking out a mortgage loan).

Front 34

Types of Liens (VISE)

2. Involuntary Lien

Back 34

Not a matter of choice, it is created by law either statutory or equitable.

Front 35

Types of Liens (VISE)

3. Statutory Lien

Back 35

Created by statute, it exsist without any action by the owner (tax lien).

Front 36

Types of Liens (VISE)

4. Equitable Lien

Back 36

Common law, a court ordered judgement that requires a debtor to pay the balance on a delinquent charge. Involuntary

Front 37

Priority of Liens

Back 37

Real estate taxes and special assessments are paid first. Than other claims are paid in the order in which they were recorded in the public records

Front 38

Easement

Back 38

The right to use the land of another for a particular purpose. Including the airspace above or across the land.

Front 39

Easement Appurtenant

Back 39

Attached to the ownership of real estate, and allows the owner of that property the use of a neighbors land. Two adjacent parcels of land owned by two different parties. Part of the dominant tenament. Transfers with the title.

Front 40

Dominant Tenament

Back 40

Benefits from the easement, has the appurtenant right to use an easement over another persons property. transfers with the property forever.

Front 41

Servient Tenament

Back 41

The parcel over which the easement runs. An encumbrance on the property.

Front 42

Easement in Gross

Back 42

An individual or company interest in or right to use someone's land. Ex: a right granted by an owner to a friend to use a portion for the rest of the friends life.

Front 43

Creating an Easement

Back 43

Written agreement between two parties to establish the right. Or by means of necessity and by prescription.

Front 44

Easement by Necessity

Back 44

Allowd by law (court order) that owners must have a right to ingress and egress over a grantors land for the full enjoyment of a parcel of real estate. They cannot be locked in.

Front 45

Easement by prescription

Back 45

If a claimant has made use of anothers land for a certain period of time ( 10to 21yrs) continuously, nonexclusive and without the owners permission. The use must be visible, open, and notorious and the owner must have been able to learn of it.

Front 46

Terminating an Easement

Back 46

The need no longer exist or the owner of either becomes the owner of both properties.

The release of the right of easement to the owner of the servient.

The abandonment of the easement.

The nonuse of a prescription or easement.

May not automatically. Legal steps may be required.

Front 47

Licenses (Easement)

Back 47

The revocable permission for a temporary use of land. A personal right or privlage to enter the land of another for a specific purpose. that can not be sold.

Can be terminated or canceled by the owner. Orally or informally.

Ends with the death of either party or with the sale of the land (does not run with the land) .

Front 48

Encroachment

Back 48

When a building , fence or driveway, tree ect... Illegally extends beyond the boundaries of the land of its owner or legal lines onto another's parcel of land/real estate.

Disclosed by an inspection or survey. The neighbor may be liable to either recover damages or secure removal of the portion.

Front 49

Ownership

1. Condominium

Back 49

The owner of each unit holds a fee simple title to the unit. Owners also own specified shares of common elements ( land, movies, courtyards, elevators, pools, tennis courts, golf course, ect....) As tenants in common. Pays expenses to HOA for maintenance of grounds.

Front 50

Ownership

2. Cooperative

Back 50

Holds title to the land and building. The purchaser becomes a shareholder in stock and receives a proprietary lease for the life of the corporation. Its only asset is the building.

Front 51

Ownership

3. Time Share Ownership

Back 51

Permits multiple purchasers to buy small interest in Real Estate (resort properties). Receives the right to occupy the facilities for a certain period, with a real property interests for a particular period of the year, but only for a certain number of years. Owners have no deed, they can trade around.

Front 52

1. Estate in Land

Back 52

The degree, quantity, nature and extent of an owners interest in real estate. Must allow possession; the holding and enjoyment of the property. Measured according to time (length of time of possession).

Front 53

2. Freehold Estate

Back 53

An ownership interest that last for an indefinite (indeterminable) length of time, such as for a lifetime or forever.

Can be a Fee Simple Estate and can also be a Life Estate.

Front 54

3. Fee Simple Estate / Fee Simple Obsolute

Back 54

The highest interest in Real Estate. The holder is entitled to all rights by law.

Continues for an indefinite period to run forever, may be passed along to owners heirs, coowners, or person specified in WILL or persons designated by state law of intestate succession.

Front 55

4. Life Estate

Back 55

Held only for the lifetime of a person and ends when that individual dies.

Front 56

5. Fee Simple Defeasible

Back 56

A qualified fee estate is subject to occurrence or nonoccurrence of some special event.

Fee Simple Determinable

Fee Simple Subject to a Condition.

Front 57

6. Fee Simple Determinable

Back 57

A fee simple defeasible state that may be inherited (based on an occurrence or event). So long ad or while during.

Former owner retains possibility of reverter (transfered back to them) if limitation is violated.

Front 58

7. Fee Simple Subject to a Condition Subsequent

Back 58

An estate carrying the limitation that, if it is no longer used for the purpose conveyed, it reverts to the original grantor by the right of reentry

Front 59

8. Life Estate

Back 59

A freehold estate limited in duration to either the life of the holder or the life of some other designated Peron(s) Not inheritable. Holder is called the life tenant whose entitled to the rights of ownership and benefits from possession.

Ownership may be sold, mortgaged, or leased but is always subject to the finite limitation of the life estate.

Front 60

9. Pur Autre Vie

Back 60

Based on the lifetime of a person other than the life tenant. For the life of another. Inheritance of the property right by the life tenants heirs, only until the death of the identified person(s).

Often created for people who are physically or mentally incapacitated.

Ex: granted for a surviving brother by his disabled sibling(owner) for the life of the surviving Siblings children.

Front 61

10. Remainder

Back 61

The creator of the life estate may name a person as the one whom the property will pass when the life estate ends.

Front 62

10. Reversionary Interest

Back 62

The creator of the life estate may choose not to name a remainder man, in this case the ownership returns to the original owner upon the end of the life estate.

Front 63

Legal Life Estate

Back 63

Not created by a property owner, but rather is established by state law, automatically when certain events occur.

Front 64

Legal life Estate

Dower

Back 64

The llegal right or interest that a wife acquires in the property her husband held during their marriage. Provides a nonowning spouse with means of support after he death of the owning spouse.

The nonowning spouse has a lifetime right to a one half or one third interest, even if the nonowning spouse wills the estate to others.

Front 65

Legal Life Estate

Courtesy

Back 65

A life estate, usually a fractional interest given to the surviving husband in real estate owned by his deceased wife.

Provides a nonowning spouse with means of support after the death of the owning spouse.

The non owning spous has a lifetime right to one half or one third interest in the real estate even if the owning spouse wills the estate to others.

Front 66

Legal Life Estate

Homestead

Back 66

A legal life estate occupied as the family home. The home or at least some part of it is protected from most creditors during the occupants lifetime. The family home is exempt from certain judgments for debts. Not from real estate taxes tho.

Front 67

Ownership in Severalty

Back 67

Occurs when property is owned by one individual, corporation or entity. A sole owner is severed or cut off from other owners. The owner has sole rights to thwbproperty and sole discretion to sell, will, lease, or transfer part or all of the ownership rights.

Front 68

Co-Ownership

Tenancy in Common (TIC)

Back 68

Owned by two or more people. Each tenant holds an individual interest in the property. Unity of possession (each owner is entitled to possession and use of the entire property). Anyone can sell, convey, mortgage or transfer their individual interests without the consent of the other co-owners. No individual tenant can transfer the entire property.

A share by a couple can only be transfered with the agreement of both.

When one co-owner dies his/her interest passes according to the decendents WILL, or if no will than to their heirs or than by the decendents trust.

Hint 68

2owners: 1/2 and 1/2

3owners: 1/3 and 1/3 and 1/3

Ect.....

Front 69

Co-Ownership

Joint Tenancy

Back 69

Property owned by two or more people whether married or unmarried upon the death of a joint tenant, the deceaseds interest transfers directly to the surviving joint tenants via Right of Survivorship. If all dies accept one than the survivor takes title in Severalty and the joint tenancy is terminated, OR to the other remaining tenants.

Front 70

Creating a joint Tenancy

Back 70

Created only by the intentional act of conveying a deed or giving the property by WILL or living trust. The 4 unities necessary to create joint tenancy may be remembered as PITT.

Front 71

PITT

Back 71

P - Possession, All tenants hold right of possession.

I - Interest, All tenants hold equal ownership interest.

T - Time, All tenants acquire their interest at the same time.

T - Title, All tenants acquire interest by the same document.

Front 72

Co- Ownership / Ownership

Tenancy By the Entirety

Back 72

A special form of co-ownership that allows a spouse to inherit the other spouses ownership interest upon death. They have the right of survivorship. They can convey title only by a deed signed by both parties. 2 people as a couple are rwfered to as one. Each spouse has an equal undivided interest.

Front 73

Ownership

Community Property

Back 73

Consists of real and personal property acquired by either spouse during the marriage. Conveyance or encumbrance requires signature of both spouses. They can WILL their half to whomever they desire. But upon death of one spouse the surviving spouse automatically owns the other half or the heirs if no WILL.

Front 74

Ownership

Community Property Rights

Separate Property

Back 74

Real or personal property that was owned solely by either spouse before marriage. Purchased with separate funds; Mortgaged or conveyed by the owning spouse without the signature of the nonowning spouse. Acquired by gift or inheritance by one spouse during marriage.

Front 75

Leasehold Estates

Back 75

Less than freehold estate. A tenants right to possess real estate for the term of the lease. considered personal property.

Front 76

Leasehold estate

Estate (Tenancy) for Years

Back 76

Continues for a definite period (years, months, weeks, or days). Always has a specific starting and ending date. No notice is required to terminate because the lease agreement states a specific expiration date.

Hint 76

Also called an Estate for Term.

Front 77

Leasehold Estate

Estate from Period to Period. (Periodic Tenancy)

Back 77

When the landlord and tenant enter into an agreement for an indefinite time (term). Lease has no specific expiration (Month to month, week to week or year to year). Proper notice of termination is automatic renewal given

Front 78

Leasehold Estate

Estate (renancy) at WILL

Back 78

Gives the tenant right to possess property with the landlords consent for an unspecified or uncertain term (indefinant term). Continues until it is terminated by either landlord or tenant, with proper notice. No period of occupancy is specified. Automatically terminated by death of either.

Front 79

Leasehold Estate

Estate (tenancy) at Sufferance

Back 79

Arises when a tenant who lawfully took possession, continues in possession without the landlords consent, after the right of possession expires (holds forever).

Front 80

Common interest

Ownership Properties

Back 80

Use of premises. Use restrictions particularly common in leases for stores or commercial spaces.when premises are to be used only as what is stated in the lease. (Office space, store space, shops, living quarters, and nothing else).

Front 81

Bundle of Legal Rights

Ownership Rights

Back 81

-Right of Possession

-Right to control the property within law

-Right of enjoyment

-Right of Exclusion (to keep others from entering)

-Right of dispositions (to sell, will, transfer, encumber, or dispose of any way u want)