Ownership of Real Property Flashcards
(91 cards)
1
Q
_________ is the state or condition of holding legal claim or title to something. The indefinite “something” to which claim or title is held is generally referred to as ________.
A
Ownership
Property
2
Q
3 Components of Real Estate
A
Land
Improvements
Plants, trees and crops
3
Q
The surface of the earth, the soil and anything that is permanently attached to the earth’s surface, such as trees
and water. We also include in this definition the air space above and substances below the earth’s surface, in theory, to the center of the earth itself. This includes both corporeal,
or tangible, and incorporeal, or intangible things.
A
Land
4
Q
To ________: Certain rights of ownership flow directly from the physical nature of land. The most important
of these are mineral rights, the right of lateral support, air rights, and riparian rights.
A
infinity
5
Q
Among the physical characteristics of land are its __________ or indestructibility, its __________, its __________ and its __________.
A
permanence
immobility
complexity
uniqueness
6
Q
By the __________ or the indestructibility of land we mean that it will always be there-it is durable.
A
permanence
7
Q
Refers to the fact that land is fixed in location, or rigid. Its geographical location is never changed, but remains constant.
A
Immobility
8
Q
Refers to the uniqueness of land because each parcel of land is unique to itself. Even though two pieces of land may appear the same, they can not occupy the same geographical space.
A
non-homogeneity
9
Q
The __________ of land refers to the intricate variety of qualities, substances and characteristics that make up the earth
A
complexity
10
Q
Five Categories of Real Property
HInt: RAICS
A
Residential
Agriculture
Industrial
Commercial
Special Purposes (parks, roads etc)
11
Q
Economic characteristics that influence the value of land as an investment include: ________, ____________, ______ of __________ and _____.
A
scarcity, modification, fixity of investment and situs.
12
Q
This is dependent upon human demand and the uses of the land.
A
Scarcity
13
Q
Improvements modify or affect not only the properties they’re built on, but also other surrounding properties
A
Modifications
14
Q
_______ of __________: Improvements on the land represent capital invested in the land.
A
Fixity of investment
15
Q
Every parcel of land occupies a specific location. Location has value primarily in terms of its accessibility and its desirability as an object of human demand. It is location as a determinant of the
land’s economic value.
A
Situs
16
Q
An owner’s rights to things below the surface of his property are called _______ ______.
A
Mineral Rights
17
Q
___ ______: The rights that attach to the space above the surface of an owner’s property. These rights protect the owner against unreasonable obstruction of his property from above.
A
Air Rights
18
Q
________ ______ that apply to land adjacent to running water. These rights allow an
owner to use and enjoy, within reasonable limits, the water that borders or runs through his property.
A
Riparian Rights
19
Q
_________ _________, those accessible to commercial boat traffic, are publicly owned. They cannot
become the private property of anyone. Thus, for land adjacent to navigable waterways, ownership stops
at the water’s edge.
A
Navigable waterways
20
Q
Ownership along ___-_________ __________ does not stop at the water’s edge. Here the riparian owner will often hold title to the waterway up to its midpoint, or from bank to bank if the waterway runs through the owner’s property.
A
non-navigable waterways
21
Q
______ of rivers and streams include the land between the average low water mark and the average high water mark.
A
Banks
22
Q
________ ______apply to ocean front property or property on some large lakes. The ownership usually extends to the point of high tide. These rights are similar to riparian rights for navigable waterways.
A
Littoral Rights
23
Q
___________ ______ include underground water resources such as springs, geysers, and streams. These rights are similar to mineral rights.
A
Percolating waters
24
Q
________ of _____ _____________: In states where water is scarce, ownership and use of water are often determined by this doctrine. It states that the right to use any water, with the exception of limited
domestic use, is controlled by the state rather than by the landowner adjacent to the water. To secure water rights in these states, a landowner must demonstrate that he plans a beneficial use for the water, such as crop irrigation. The landowner must obtain a permit from the state to use a specified amount of water for a specific purpose. Issuance of the permit does not grant access to the water. Access must be negotiated as an easement with the owner of the property which adjoins the water source. The water
rights may be sold by the permit holder to another.
A
Doctrine of Prior Appropriation
25
Land and ____________ are the two things that make up real property, one an element of nature and the
other an element of man. By ____________, we mean any permanent, man-made attachments or additions to the land. This include factories, houses, offices, libraries, schools, driveways, fences, sidewalks, etc. All are products of human labor and are immovable. ____________ and other
immovables can be owned by someone other than the owner of the land.
Improvements
26
A _______ is defined as an item of personal property which has been permanently attached to real property such that it is considered a part of the real property. Therefore, personal property can become real property. A faucet, for example, is personal property from the moment the owner buys it until the time it is installed in his house. Once installed, however, it becomes what we call a _______.
fixture
27
_________ _______ _______: If the buyer and seller agree on the status of any object, no other factors need be taken into account. This factor commonly used supersedes all other considerations as to what does or does not constitute a fixture. However, to be binding, the agreement must be written into the contract of sale.
Agreement between Parties
28
______ Of __________: The more permanently an item is attached to the property, the more likely it will be considered a fixture. For example, attachment by cement suggests permanence. Objects whose removal would cause structural damage to the property or leave it incomplete, such as water pipes, must necessarily be considered fixtures.
Method of Attachment
29
_________ Of The _____ Doing The _________: Did the owner intend to make the object a permanent addition to his property, or did he regard its installation as only temporary?
Intention of the party doing the attaching
30
____________ Of The ________ ______: The final determinant of fixture status is by their nature have been designed to suit one property will usually be considered fixtures.
Adaptability of the attached object
31
_________: An item of real property may become personal property. For example, a
tree is considered real property until it is cut down by the owner, at which time it becomes personal property.
Severance
32
__________: Personal property may become real property. If for example, the owner buys a plant at a nursery it is personal property until such time as it is planted on the property.
Annexation
33
_____ ________ are defined as things attached to real property for the purpose of carrying on a business. Unlike ordinary fixtures, _____ ________ are considered personal rather than real property, regardless of any permanence implied by method of attachment. Examples would be barber chairs, dentist chairs, bowling lanes, etc.
Trade fixtures
34
______, _____ and _____: Real property also consists of things growing on the land. Trees, grass and other kinds of vegetation that are found on a piece of property are considered to be in one of two classes.
Plants, Trees and Crops
35
_______ _________: fruits of nature, are naturally growing things on the land that do not need annual cultivation. These are considered real property.
Fructus Naturales
36
_______ ____________: fruits of industry, or __________, are essentially farm crops, things that are grown and harvested every year. These are considered to be personal property. However, if land is sold during the growing season, and before harvest time, the unharvested crops may be considered as real property. (* In Louisiana, the crop will be considered either a movable or immovable.)
Fructus Industriales
emblements
37
The area of land granted by the king or lord was known as a fee, fief, or feud, hence the name Feudal System.
Feudal System
38
_______ ______: System of land ownership which recognized the right of individuals to own land absolutely, without obligation to political superiors. This system every parcel, or allodium, has a title which legally confers ownership. Whoever holds title to the land, owns the land itself, and this is the system we use today.
Allodial System
39
The rights of the real property owner can be represented as a bound together collection of sticks known
as the "______ of ______". Each stick in the bundle represents a specific right - the right to build, sell, lease, mine for minerals, plant and harvest crops, etc. These rights are both separable and divisible. That is, they can be separated or divided among several owners.
Bundle of Rights
40
4 Common Bundle of Rights
HInt: PCQED
Rights of Possession
Rights of Control
Rights of Quiet Enjoyment
Rights of Disposition
41
______ of __________: allow an owner to occupy the property he owns.
Rights of Possession
42
______ of _______: allow the owner to control the way in which his property is used.
Rights of Control
43
______ of _____ _________: insure that an owner will be able to use and enjoy his property without the interference of other parties. _________ related to this term meaning to keep others from entering or using the property.
Rights of Quiet Enjoyment
Exclusion
44
______ of ___________: allow the owner to dispose of his property as he chooses, that is, sell, will, or give away the property.
Rights of Disposition
45
________ _______: A person owning some or all of the rights contained in the Bundle of Rights. This is an ownership interest in real property extending for an
indeterminable length of time. A freeholder owns the property indefinitely, until he dies, sells, or wills it to someone else.
Freehold Estates
46
___-________ _______: An interest in real property that does NOT last indefinitely is called a ___-________ or leasehold estate. Leaseholds are limited to a specific period of time. They are interests of a tenant rather than an owner.
Non-Freehold Estates
non-freehold
47
___ ______ ______the most complete form of ownership recognized by law. The word "fee" derives from feudal times when a king bestowed gifts of land as fees, fiefs, or feuds. This type confers ownership in an absolute sense. There are no restrictions or conditions placed upon its inheritance. A fee simple owner may own land and all its rights together, or just a few of the rights by themselves. Fee simple ownership lasts forever and may be passed from heir to heir. It is also
called fee simple absolute.
Fee Simple Estate
48
A fee simple estate may have special conditions or limitations attached to the ownership. This is called a ___ ______ __________ ______.
Fee simple defeasable estate.
49
The _________ or ____________ ___ ______is ownership with conditions. For example, an owner may confer ownership on the condition that no alcohol is sold on the premises, or for as long as the owner
does not marry. This type uses the wording “so long as” or “during”. If the restriction is violated, ownership reverts to the former owner.
Qualified or Determinable fee estate
50
A fee simple estate may be qualified by a _________ __________. which is formally called ______ ___ ______ on _________ __________. This means that there are conditions on ownership for the new other-that is, the new owner is prevented from performing some action or activity. If the conditions are not met, the grantor has the right to reclaim or revert, ownership upon violation of the conditions. However, reversion is not automatic and he must go to court to assert his right.
condition subsequent
Estate Fee Simple on Condition Subsequent
51
Both Qualified or Determinable fee estate and condition Subsequent (Estate Fee Simple on Condition Subsequent) are considered ______ _________.
future interests
52
The conditions, as incorporated in the deed, may apply to one or more succeeding owners. This type of estate is held as long as the conditions are met. If the conditions are violated ownership reverts to the original owner. Provisions for reversion are contained in a ________ ______. Once the property reverts to the original owner it becomes a fee simple estate again.
reverter clause
53
A second type of freehold estate is the ____ ______. The owner of a life estate holds title as long as he or some other specified person is alive. When the ____ ______ owner dies, title passes to a designated third party or reverts back to the original owner or his heirs.
Life Estates
54
Another type of life estate is called
____ _____ ___, which means "for the life of another". This means that the life estate owner retains title until the death of a third party.
Pour Autre Vie
55
Upon creation of a life estate, the owner designates who will own the property upon the death of the life estate owner. That person is called the ____________. The interest he acquires is called a future of
_________ ________. The ____________ acquires a fee simple interest with no limitations. If no ____________ is named, title reverts to the original owner or his heirs. This is called a ____ ______ in
_________.
remainderman
remainder interest
remainderman
remainderman
life estate in reversion
56
There are 2 types of life estates
Conventional life states
Legal life estates
57
____________ ____ _______: created by the deed or will of the owner.
conventional life estates
58
_____ ____ _______: created by state law. There are three types: Dower Curtesy Homestead
Legal Life Estates
59
_____: the interest a widow holds in her deceased husband's estate.
Dower
60
_______: the widower's interest in the estate of his deceased wife
Curtesy
61
_________: exemption of the family's primary residence from forced sale for the satisfaction of personal debts.
Homestead
62
_________ in __________: A person owning property by himself. The word derives from the verb "to sever" and NOT from the word "several".
(* In Louisiana, we call this type of ownership sole ownership.)
Ownership in Severalty
63
__-_________: This ownership is by two or more people. The rights of ownership are shared. There are five main types. (* In Louisiana co-ownership is known as “ownership in indivision”.)
Co-Ownership
64
_______ in ______: This is the simplest type of co-ownership. Each tenant, or owner, holds title to a specific share of the property. There are as many titles to the property as there are tenants. Each tenant may sell, will or dispose of his share as he chooses.
Tenancy in Common
65
_____ _______ is characterized by __________, ________, ____, and _____, or PITT. All
members must acquire their interest at the same time, each tenant holds an equal
share, and it has the right of survivorship. That is, when an owner dies, his share is divided equally among the remaining tenants. They can not will his share. However, he can sell his share, but
the new owner would be a tenant in common, NOT a joint tenant. The other tenants would continue to be joint tenants with each other. . Because of the right of survivorship, joint tenancy has been called a “Poor Man’s Will”, although it can not be considered an actual will.
Joint Tenancy
Possession, interest, time and title
66
___________ of _____ _________ and _________ in ______: Dissolving a joint tenancy or a tenancy in common can present problems in terms of dividing up the property. Since all tenants have an undivided interest in the property as a whole, no one of them can claim any special part as his. The owners may agree voluntarily to some plan of division. Otherwise, a legal division must be effected. This is done through legal action known as a ________ ____. One or more owners must file suit to have the tenancy dissolved. The court first seeks a _________ in ____, in which the property is divided up according to each owner's percentage share. If no division of the property is practical, or if the owners can not agree to a division, then the court will then seek a _________ in __________. That is, the court will order the property to be sold and the proceeds distributed to the owners according to their percentage share.
Dissolution of Joint tenancies and tenancies in common
partition suit
partition in kind
partition in licitation
67
_______ by the ________: In most states a husband and wife own property together either as joint tenants or as tenants in common. In some states, however, either of two special forms of husband and
wife co-ownership may be recognized, _______ by the ________ and _________ ________. _______ by the ________ is based on the common law principle that the husband and wife constitute a single legal entity. The entire estate is said to be owned by both spouses as a single person. In order for property to be
transferred, both spouses must sign. A deed or other instrument signed by only one spouse is not valid. Neither spouse may acquire or dispose of property without the other's consent. _______ by the ________ and joint tenancy have many similarities. The four unities (possession, interest, time and title) apply to both, and both have the right of survivorship. However, they differ in how they may be dissolved. A _______ by the ________ lasts as long as the marriage lasts. It can only be dissolved by divorce or death. Only legally married persons may form a tenancy by the entirety.
Tenancy by the Entirety
Community Property
68
Unlike tenancy by the entirety, _________ ________ emphasizes NOT the unity
of spouses, but their equality as married partners. All property, both real and personal, that is acquired by the marriage is owned by both spouses as equal partners, each having a half interest.
Any property acquired outside the marriage is called ________ ________. Property which is inherited, received as a gift, or acquired before or after the marriage, is considered separate property and is owned by only one spouse.
Unlike tenancy by the entirety, either spouse may buy real property without the other's consent, however,
neither may sell or transfer property without the other's agreement.
Community property
separate property
69
. __-__________: Members own shares of stock rather than real property. It is really a corporation owning real estate for the sole purpose of providing housing for its members. The stock each member holds entitles him to exclusive use of one of the housing units. Exclusive use of these units is secured by a ___________ _____, which confers rights that are more than an ordinary renter's, but less than a full owner's.
Co-operatives
proprietary lease
70
____________: A form of ownership that involves several owners holding fee simple title to individual units in a property and proportional shares in the whole property's common elements, that is, the land, walls, structural supports, stairwells, swimming pools, etc. This owner owns property in severalty, as sole owner of his unit, AND as a co-owner of the common elements. He has full fee simple ownership rights in his unit, and may sell, mortgage, or will it. He does NOT have the right to separate it from the rest of the complex. As to the common elements, the owner acquires an interest in proportion to the value of his individual unit and is considered a tenant in common with the other owners
Condominiums
71
The condominium declaration establishes certain _________, __________, and ___________ (CCR's), which are enforced by the Condominium Association for the purpose of maintaining peace, tranquility and attractiveness of the community as a whole. Condominium laws are called "horizontal property acts". * In Louisiana, only by checking the condo declaration can you tell if the land beneath the condo is tenancy in common or sole ownership.
covenants, conditions, and restrictions
72
_________ _________: A method by which multiple purchasers can buy interest in real estate. Each purchaser has the right to use the property for a fixed period of time. The owner has fee simple ownership for a specific period of time.
Timeshare ownership
73
A _____ is an ownership arrangement in which property is held by one party for the benefit of another. There are three parties involved. The trustor conveys title to the property to the trustee, who will own the property for one or more people, the beneficiary. The trustee is bound to act always in the beneficiary's interest in administering the _____.
Trust
74
PUD’s: _______ ____ ____________ combine different land uses such as housing,
recreation, and businesses in one development. They require special zoning ordinances. Owners do not have direct ownership interest in the common areas.
Planned Unit Developments
75
MUD’s: _____ ___ ___________ are highrise developments which combine offices, stores, theaters, and apartments in a single building. They may also offer laundry facilities, restaurants,
groceries, hair salons, etc.
Mixed Use Development
76
____ ______________: Title to the business is held by one person.
Sole Proprietorship
77
_______ __ ___________: An association of two or more persons joined together for business purposes as co-owners. There are two basic types of partnerships. If the articles of partnership are recorded, the partnership will own any property it purchases; if not, the individual partners are the owners.
Tenancy in Partnership
78
_______ ___________: Each partner is responsible for the partnership's debts up to the limits of his own private resources, and is held individually liable for any business losses and obligations.
General Partnership
79
_______ ___________: This type of partnership includes one or more general partners as well as its silent, or limited partners. The partner will put up most of the investment capital, but do not
have much to say in the management of the business. They incur less personal financial risk than general partners, but do not have the organizational control that the general partners have. (* In Louisiana, the term for limited partnership is “partnership in commendam”.)
Limited Partnership
80
A ____________ is considered a legal entity in the eyes of the law. Management is controlled by the board of directors. Individuals invest by purchasing
stock. Stock is considered personal property, therefore, the stockholders do not have a direct ownership interest in any real estate own. It is managed by the board of directors. It is a legal entity, it can own real property in severalty. One of the main disadvantages of corporate ownership of income property is that the profits are subject to double taxation. They must pay a corporate tax, and the profits that are distributed to the
shareholders are taxed again as dividends or individual income.
Corporation
81
_____ _______: is a form of partnership in which two or more people or firms carry out a single business project. It exists only for the duration of the project. Most states have adopted the _______ ___________ ___ (UPA) which allows real estate to be held in the name of the partnership.
Joint Venture
Uniform Partnership Act
82
Real property consists of:
a. land
b. land and improvements
c. land, improvements, and plants
d. land, improvements, plants, and air
b. land and improvements
83
Real property can be categorized as:
a. residential, commercial, agricultural, industrial, and special purpose
b. residential, business, agricultural, industrial and commercial
c. residential, agricultural, mixed use, industrial, and commercial
d. residential, commercial, agricultural, and industrial
a. residential, commercial, agricultural, industrial, and special purpose
84
Ownership along non-navigable waterways is:
a. to the water’s edge
b. to the high water line
c. to the midpoint
d. to the low water line
c. to the midpoint
85
Ownership along navigable waterways is:
a. to the water’s edge
b. to the high water line
c. to the midpoint
d. to the low water line
a. to the water’s edge
86
Personal property that has become real property is known as:
a. attachment b. fixture
c. littoral d. fixity
b. fixture
87
A non-freehold estate is:
a. ownership for an indeterminable length of time
b. full, complete ownership
c. not real ownership
d. a leasehold
d. a leasehold
88
A determinable fee estate is ownership with:
a. a set length of time b. a lease
c. conditions d. life estate
c. conditions
89
Tenancy by the entirety is most similar to:
a. joint tenancy
b. tenancy in common
c. community property
d. ownership in severalty
a. joint tenancy
90
Which estate is ALWAYS inheritable?
a. life estate b. leasehold
c. freehold d. fee simple
d. fee simple
91
Ownership of a condominium unit is best described as:
a. Ownership of the unit to the boundaries and joint ownership of the common areas.
b. Fee simple title in the unit and a specified undivided interest in the common areas.
c. Joint ownership of the unit and the common areas.
d. Tenancy in common in the unit and common ownership of the other areas.
b. Fee simple title in the unit and a specified undivided interest in the common areas.
