Lesson 1: Ownership Rights Flashcards
(113 cards)
1
Q
Bundle of rights
A
An ownership concept describing all those legal rights that attach to the ownership of real property.
2
Q
CUPED
A
The right to control, use, possess, encumber, exclude, and dispose (sell, lease, or will) the property.
3
Q
Property is: (two things)
A
Property is not only the thing owned, but also the rights and interests in the thing owned.
4
Q
Real Property
A
All land and appurtenances to the land, including buildings, structures, fixtures, fences, and improvements erected upon or affixed to the same, excluding growing crops (emblements).
5
Q
Chattel
A
An article of personal property.
6
Q
Title
A
The right of ownership of something, and the physical evidence
of ownership, such as a deed or bill of sale.
7
Q
Estate
A
One’s legal interest or rights in land.
8
Q
Fee Simple
A
The largest, most complete bundle of rights one can hold in land, the most complete kind of ownership.
9
Q
Estate in severalty
A
Sole ownership, owned by one person.
10
Q
Concurrent ownership
A
Ownership by two or more persons at the same
time.
11
Q
Joint tenancy
A
Two or more natural persons with the right of survivorship.
12
Q
Survivorship
A
Upon the death of a joint tenant, the entire interest vests in the surviving tenant(s), without probate.
13
Q
Four unities of Joint Tenancy
A
Four unities of Time, Title, Interest and Possession.
14
Q
Why a corporation cannot be a joint tenant?
A
Because of its perpetual existence.
15
Q
Tenancy in common
A
Shared ownership of a single property among two or more persons, interests need not be equal and there is no right of survivorship.
16
Q
Undivided interest
A
Ownership by two or more persons that gives each the right to use the entire property.
17
Q
Tenancy by the entirety
A
A form of joint ownership reserved for married persons; the right of survivorship exists and neither spouse has a disposable interest during the lifetime of the other.
18
Q
Sole ownership
Tenancy in severalty
A
When one person owns property,
19
Q
Partition
A
The dividing of common interests in real property owned jointly by two or more persons.
20
Q
Life estate
A
An estate in real or personal property that is limited in duration to the life of its owner or that of some other designated person.
21
Q
The right to dispose of a property is…
A
…the right to transfer its ownership.
22
Q
The right to encumber the property is…
A
…the right to mortgage property as collateral (security) for a debt.
23
Q
Hereditaments
A
Hereditaments are things capable of being inherited,
24
Q
Tenements
A
Tenements include buildings and other improvements that relate to the land and pass with it, and the real property rights associated with them.
25
What is Land and what does it contain?
Land starts at the center of the earth,passes through the earth to the surface, and continues into space. Land also includes that which is permanently attached to it by nature, such as trees and water.
26
Real Estate
Real Estate is land and the man-made improvements to the land.
27
Real Property
Real Property, on the other hand, is land, man-made improvements to the land, and the interests and rights coming with the ownership of real property.
28
Subsurface rights are...
... rights to substances in the ground like minerals, water, gas, and oil.
29
What kind of a property are minerals, water, gas, oil etc?
Minerals, etc., are real property.
30
Lateral Severance
The separation of subsurface rights from surface rights is called lateral severance.
Subsurface rights may be leased or sold while maintaining surface rights.
31
Contiguous
Sharing a common border; touching.
| Sext or together in sequence.
32
Improvements
Anything attached to land in a permanent way is considered a part of the land and so is real estate. Thus buildings, fences, roads landscaping, and so on are real estate and are called improvements.
33
How is ownership of personal property transferred?
If their ownership is to be transferred, it is done so with a bill of sale, not a deed.
34
Fixture
An item of personal property when permanently attached to real estate becomes a fixture.
35
The Four Tests of Intention in regard to real/personal property:
Four considerations determine whether something was intended to be attached permanently and thus is a fixture: (1) manner of attachment, (2) adaptation, (3) existence of an agreement and (4) relationships of the parties.
36
Manner of Attachment
When an item of personal property is attached to the land by being imbedded or affixed by means of cement, nails, bolts, etc., it becomes a fixture.
An item may be considered a fixture even though not securely attached if it is vital to the operation of a building.
37
Adaptation of the Object
If the article is uniquely adapted to the building it may be considered real property, whether easily removed or not.
38
Existence of an Agreement
A seller can stipulate in the contract for sale what he considers personal property and will take with him and what he considers real property and so will leave behind.
39
Relationships of the Parties
If in a landlord-tenant relationship, items are affixed to real property to conduct a business or trade, the items remain personal property, and thus the property of the tenant, even though attached.
40
Ownership by accession
Trade fixtures must be removed before the lease expires and without causing serious damage to the building. If they are not, they become the real property of the landowner. When the landowner acquires fixtures in such a way, it is ownership by accession.
41
Fructus naturales
Trees, cultivated perennial plants, and uncultivated vegetation, such as forests and wild berries, (called fructus naturales), are considered part of the land.
42
Fruits of industry
Annually cultivated crops, emblements, are personal property, even though attached to the soil. These are called the fruits of industry.
43
Severance
Real property can be changed to personal property by severance.
44
Riparian right
The owners of land bordering on a stream have the right to use the water. This is called a riparian right.
45
The doctrine of prior appropriation
This doctrine says that the first owner to divert water for usage may continue to do so, even though it may be unfair to other landowners along the stream.
46
Littoral rights
Littoral rights are associated with non-flowing bodies of water. Land bordering on a lake or sea carries littoral rights.
47
What is the priority of unappropriated water?
The priority of unappropriated water is first for domestic use, then agricultural, then industrial.
48
Accession
The amount of land owned by someon can be increased by accession. Accession can result from natural t man-made causes.
49
Accretion
Accretion, then, is the gradual building of land by alluvial deposits through natural causes along water lines.
50
Reliction, or dereliction
Reliction, or dereliction, results when a sea or lake permanently recedes, exposing dry lands.
51
Avulsion
Avulsion, on the other hand, results when land is washed away by water.
52
Man-made accession
Man-made accession occurs when someone (perhaps a renter) attaches personal property to the land.
53
Percolating water
If subsurface water is not in a defined waterway, it is percolating water.
54
An appurtenance
An appurtenance is something that passes with the land, but is not necessarily a part of the land. An appurtenance may also be defined as something that belongs to the land, but not forever.
Examples of appurtenances are easements, water rights, condominium storage and parking spaces, buildings, fences, and so on.
55
Interest
An interest in the real estate is the ownership of one or more of the rights to real property.
56
An interest holder with the right of possession has...
...an estate in land.
57
An interest holder without the right of possession has...
...an encumbrance.
58
Estate
An estate is the degree, quality, nature, and extent of one's interest in land or other property.
The word estate refers to one's legal interest or rights, not to the physical land itself.
59
Allodial system
Under the allodial system, land can be held independently by individuals owing no rent, service, or acknowledgment to the state as overlord.
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Kinds of Estates
Estates are commonly classified as freehold estates and non-freehold (leasehold or less-than freehold) estates.
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What laws are freehold estates governed by?
Freehold estates are governed by real property laws.
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What laws are non-freehold estates governed by?
Non-freehold estates are governed by personal property laws.
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There are three kinds of freehold
| estates:
There are three kinds of freehold
estates--fee estates, which are of an unknown duration; life estates, which are limited to someone's life; and legal estates, which are created by statute.
64
A fee simple absolute estate
A fee simple absolute estate, often called a fee estate or a fee simple estate, is the most complete ownership in land.
The interest must be for at least one individual's lifetime-that is, for an uncertain duration-and it may be freely passed to heirs-thus it is often called an Estate of Inheritance.
65
A defeasible fee
A defeasible fee, often called a base fee or qualified fee, is a fee simple estate subject to limitations.
66
There are four defeasible fees:
There are four defeasible fees: (1) fee simple determinable, (2) fee simple subject to condition subsequent, (3) fee simple subject to condition precedent, and (4) fee simple subject to an executory limitation.
67
A fee simple determinable
A fee simple determinable, also known as fee simple subject to special limitations, exists as long as a certain use or condition continues and automatically terminates when the prescribed use or condition does so.
68
A remainderman
Also rather than reverting back to the owner or his heirs, the estate can go forward to a third party remainderman. The person holding the reversion or remainder has an executory interest.
69
What is a fee simple subject to condition subsequent and how does is differ from a fee simple determinable?
the estate would be terminated after, or subsequent to, a certain event taking place.
The difference between this Condition Subsequent and Fee Simple Determinable is the eo instanti clause.
The original grantor (or his heirs or remainderman), then, must physically retake possession through the right of re-entry.
70
Fee Simple Subject to Condition Precedent
With this type of defeasible fee, a change in ownership does not come about until something else happens. Something must precede a title change.
71
Fee Simple Subject to an Executory Limitation
This type of defeasible fee can be any of the above. Its distinguishing characteristic is that upon the happening of a specific event, the estate does not return to the grantor, but passes automatically to someone else instead.
72
Fee Tail
With a fee tail one could not convey land, but the estate would continue as long as there were any lineal descendants. Where there were none, the land would automatically revert back to the donor or his heirs.
73
Life Estates
Life estates convey an estate in real or personal property for the duration of someone's life, either the owner's or someone else's.
Life estates may arise by agreement of the parties, conventional life estates, or by law, legal life estates.
74
Who can a life estate revert back to?
The estate can revert back to the original owner (the grantor) or his/her heirs, a reversion, or it can go to a third person, a remainderman.
75
Legal life estates
Legal life estates, also called statutory estates, are created by law. They are dower and curtesy.
76
Dower and curtesy
Dower is a life interest in real estate given to a wife upon her husband's death.
Curtesy gives the husband benefits in his deceased wife's property for as long as he lives.
77
The difference between dower and curtesy
Unlike dower, however, the wife can defeat those rights in her will.
78
Homestead protection laws
These laws are designed to provide some legal protection from debts and judgements that might result in the loss of the home and to provide a home for a surviving spouse for life.
79
Non-freehold estates
Non-freehold estates, also called less-than-freehold estates and leasehold estates, like freehold estates, are estates in possession. Possession, however, is not by the owner, but by a tenant.
80
What kind of property do leasehold fit under?
Leaseholds are estates in personal property, also called chattel real.
81
Lease
Such an instrument is a written or unwritten agreement transferring the right of use and possession of real estate for a period of time.
82
There are four categories of leasehold estates:
(1) estates for years (2) periodic estates (3) estates at will and (4) tenancy at
sufferance.
83
An estate for years
An estate for years, also called a tenancy for years, is one for a fixed period of time, whether for a day or for 99 years.
84
Periodic Estate
This type of tenancy exists when the rental period is for a specific period of time, such as a week or a month, but there is no definite termination date.
85
Estate at will
Estate may be terminated by either party at any time.
86
A tenancy at sufference
A tenancy at sufferance arises when a tenant stays beyond his legal tenancy without the landlord's consent.
87
A holdover tenant
A tenancy at sufferance arises when a tenant stays beyond his legal tenancy without the landlord's consent. That is, the tenant wrongfully holds the property against the landlord's wishes. Such - tenant is a holdover tenant.
88
An unlawful detainee
An unlawful detainee is one who had the right to possession, but whose right to such possession no longer exists.
89
Common law
Common law comes from usage and custom over long periods of time. It is law derived from court judgments-case law.
90
Statutory law
Statutory or codified law, on the other hand, is created by legislation.
91
Types of ownership
There are essentially two categories of ownership: sole ownership, ownership by one person and concurrent ownership, ownership by two or more people.
92
Tenancy in severalty, or sole ownership
An estate or tenancy in severalty, or sole ownership, is when title to property is held by one person, whether a legal or natural person.
93
A partnership
A partnership as "an association of two or more persons who carry on a business for profit as co- owners.
94
Kinds of partnerships:
There are two kinds of partnership-general and limited. General partnerships consist of only general partners. Limited partnerships consist of both general and limited partners.
95
General partnership
In general partnerships, each partner is personally responsible for the obligations of the partnership.
If one partner makes a commitment for the partnership, all partners ar responsible for that commitment.
If the partnership is sued, each partner is fully responsible.
96
Limited partnership
Limited partnerships are made up of at least one general partner and oneormorelimitedpartners.
Although limited partners usually provide most of the investment capital, they have little to say about the day-to-day management of the entity, are not bound by the obligations of the partnership, and cannot bind nor speak for the partnership.
The financial liability of limited partners is usually confined to the amount invested.
97
A joint venture
A joint venture is a joining together of two or more people or entities to carry out a single business endeavor.
A joint venturer cannot bind other joint venturers in a contract.
98
Syndications are...
...two or more people investing together in a project too big for any one of them to do alone.
99
Concurrent Ownership kinds:
There are three kinds of co-ownership: tenancy in common, joint tenancy, and tenancy by the entirety.
100
Tenants in Common
A tenancy in common is the co-ownership of an estate in land wherein each person owns an undivided interest in the whole property.
each owner's interest is a part of the estate, not a physical portion of the property.
101
Title form with Tenants in Common
Each owner has a separate legal title to his undivided interest.
102
Partition
If owners cannot agree on how the property is to be run or on a plan for dividing and selling it, a court can order a partition.
103
If a partition with tenants in common is impossible...
If a partition is impossible, such as with a house, the court will order the property sold and the money from the sale divided among the owners.
104
Joint Tenancy
With joint tenancy all the owners are equally entitled to the benefits of owning the property. Rights and interests are undivided and equal.
Joint tenancy carries the right of survivorship.
105
Four unities of joint tenancy:
Time--each interest must be acquired at the same time.
Title--all interests must be created on the same instrument of conveyance.
Interest--each interest in the property must be undivided and the same.
Possession--each person in ownership must have the right to an undivided possession and use.
106
Title form with Joint Tenants
Joint tenants hold single title together.
107
Tenancy by the Entirety
It contains the right of survivorship, and neither spouse may individually sell, encumber or sever his/her interest in the property except by death, divorce or annulment.
108
Community Property
Both spouses contribute jointly and equally to their marriage and so should share equally in any property acquired during marriage.
109
Trust
An arrangement in which one person (grantee, also called the trustor) uses the money of other people (grantors or beneficiaries) for the benefit of the other people.
110
Real Estate Investment Trust
Real estate investment trusts (REITS) pool money of several investors to buy real estate.
111
Intervivo
Title to property is transferred by an owner (trustor) to a manager trustee) for the benefit of another (beneficiary).
An intervivos or "living trust happens while the trustor is still alive. With this form of trust one can transfer property to a trustee to be managed, with the income to be paid to a child, spouse or relative
112
A testamentary trust
Title to property is transferred by an owner (trustor) to a manager trustee) for the benefit of another (beneficiary).
A testamentary trust takes effect after the death of the trustor.
113
Land Trust
With this form of trust, the owner (trustor) is also the beneficiary.
The owner places the property in the hands of a trustee who then manages the property according to the owner's specifications.
