7. Estates and Interests Flashcards
(41 cards)
Land
= surface of the earth, area below surface, above surface and structures attached to surface, air above surface
Real Property
= land, it’s attachments and all of the rights
Real estate
= physical land and everything permanently attached to it - man made and natural
Personal Property
= Chattel
- items not attached to property and movable (vehicle, furniture, boat etc )
- tangible = can be touched
- intangible= can not be touched(rights, savings account)
- can be transferred via bill of sale or by bequest (will)
Real Estate classifications
- Agriculture: land /land improvements used for agricultural production. Everything on the land used for production is agricultural property: house animal, feed animals, barns, etc. except: owners private residence, owners garage, owners shed
- Commercial:office space, industrial property, apartment complexes etc.
- Industrial: storage facility, warehouse, purchased by investor
- Residential: single family, multi family, condo, co-op, mobile home
- Special purpose:school building, gold course, religious facility, sports club, publically owned
Bundle of legal rights
= real property rights transferred with sale
- if owner has all rights he is said to have a fee simple title / ownership without limitations/restrictions
1. Right of possession: right to possess, occupy or own property and use land in any way legally
2. Right of quiet enjoyment: use land without interference from other people, you can do anything on the property you enjoy doing
3. Right of Disposition: right to sell, gift rent (jeopardized by lien)
4. Right of exclusion: right top decide who enters (expect: easements rights , legal search, rental right)
5.Right of control: right to physical alter or change property
Fee simple
- Fee simple= if owner has all rights he is said to have a fee simple title / ownership without limitations/restrictions
Right of possession
= right to possess, occupy or own property and use land in any way legally
Right of quiet enjoyment
=use land without interference from other people, you can do anything on the property you enjoy doing
Right of Disposition
= right to sell, gift rent (jeopardized by lien)
Right of exclusion
= right top decide who enters (expect: easements rights , legal search, rental right)
Right of control
= right to physical alter or change property
Interferences with Real Property Rights
- Trespassing: physical invasion of land by another person
- Encroachments: physical invasion of land by an object (tree growing over)
- Nuisance: interferes with quiet enjoyment from outside caused- loud music, odor. continuing unreasonable use of land by neighbor
Appurtenances
= rights that go with real property
- can be sold separately and can be limited by past transactions
1. Air rights
2. Mineral rights
3. Water rights
Water rights
- Littoral Water Rights: water has ebb and flow ( ocean, large lake) , owner owns land up to mean high water mark
- Riparian Water Rights: water os flowing (river, stream), non navigable stream: owner owns land under the water to the middle; navigable stream: owner owns to edge of water
- Appropriate Water Rights: government granted water rights independent of land ownership, can not interfere with land
- Percolating Water Rights: groundwater, don’t own but are granted to install well to gather water for personal use
Mineral Rights
- landowner owns all solid minerals in and under surface, considered real property until extracted from earth
- liquid minerals follow rule of capture- first person to capture has ownership BUT property owner has Supportive rights: Lateral support= support from adjacent land and subjacent support =support from underlying earth
Attachments
= things attached to the land, natural or man made (=improvements)
- buildings, roads, fences etc
- Trees, fruit
Fixtures
= personal property permanently attached to property
- personal property that becomes real property through:
1. Annexation: item becomes physically attached to real property (custom bookshelf)
2. Close Association: items becomes attached to property bc of association (keys)
3. Adoption: item will not work any where else, custom drapes
4. Agreement: negotiated and transferred in sale
Severance: fixtures can be detached and revert back to personal property
Trade Fixtures
= equipment or personal property a tenant installs for business purposes (pizza oven)
Interest
= person with a property right or claim against property has an interest in property
- can be financial interest (mortgage), right to use land (easement) or possessor interest: ESTATE (=entitles to possession now or in future)
Freehold Estates
= possessory interest of uncertain duration (#Leasehold Estate)
- Types:
1. Fee Simple Estate/ Fee title /Fee absolut
2. Qualified Fee Estate/ Fee Simple Determinable/defeasible
3. Qualified Fee Estate/Fee on Condition
4. Life Estate
Fee Simple Estate (Freehold Estate)
= Fee title /Fee absolut= highest form of ownership, no conditions on the title, can transfer, sell, lease
Qualified Fee Estate (Freehold Estate)
= Fee Simple Determinable/defeasible
= grantor puts condition in deed. When condition is not met it goes back to grantor, creates encumbrance on title because it runs with the land
Fee on Condition (Freehold Estate)
= condition in deed gives grantor right for reentry but must go through court, or condition where grantor retains title until certain time if certain condition (if heir marries before 25)
