Governmental Rights in Land
(4 - P.E.T.E.)
1. Police Power - right to enact and enforce laws
2. Eminent Domain - right to "take" private land through condemnation; property owners compensated.
3. Taxation (property & special assessment) - taxes have priority over all other liens; prop taxes = ad velorum; special assessments = charges against prop. to benefit from public improvement & if not paid can create forclosure lien
4. Escheat (government will "cheat" you even in death) - exercised when owner dies intestate (no will)
A x B = C
C / B = A
C / A = B
How to Formulate Taxes
Tax = T Assessed Value = A Rate = R
Solve for TAXES: A x R = T
Solve for RATE: T / A = R
Solve for ASSESSED VALUE: T / R = A
Tax Rate: % (part per 100) or Mill Rate (part per 1,000)
OR's and EE's Table
Documents & Parties Involved
DEED: Grantor (seller) & Grantee (buyer)
LEASE: Lessor (landlord) & Lessee (tenant)
MORTGAGE: Mortgagee (Lender) & Mortgagor (Borrower)
Estates in Land
Definition and Two Types
Estate = amount and kind of legal interest in real prop that allows or will allow possession
a. Freehold Estate = Indefinite Duration
b. Leasehold Estate = Fixed Term
Kinds & What They Do
- Fee Simple Absolute: all rights except what gov't kept; conveyed 99% of the time.
- Fee Simple Defeasible/Qualified Fee: all rights except 1; revisionary interest (condition/gift)
- Life Estate: same as Fee Simple Defeasible, but only for a lifetime; NOT TYPICAL.
Kinds & What They Do
RIGHTS OF POSSESSION
- Estate for Years: a.k.a. Tenancy for Years; specific termination date, no notice req.; death sale or prop does not terminate.
- Periodic Estate: a.k.a. Estate from period-to-period; auto-renews, i.e. month-to-month; terminated with advanced notice according to contract.
- Estate at Will: a.k.a. Tenancy at Will; indefinite duration/no fixed term, landlord's discretion; terminated by notice, death, or sale
- Estate at Sufferance: a.k.a. Tenancy at Sufferance; holdover after tenancy expires; owner can accept rent or evict; if rent accepted, turns into periodic estate.
- Claim, right, or interest held by someone who is not legal owner; nonpossessory interest
- An imperfection, typically, that does not add value
- Can be created by prop owner & can cloud title.
- Attorney should be contacted if concerned
Definition & Types
Right to use the lands of another for specific use; runs with the land/transfers with the deed; created by express agreement, prescription, or neccessity.
- Appurtenent Easement: dom/serv tenement, transfer with the land & could grant permenant access.
- Easement in Gross: only serv property/tenement, commercial easement (utility company).
- Easement by Neccessity: grated if not other access by court to prevent landlocked property & only available to private owners.
Can be terminated 3 ways:
- Merger - dom interest holder (DIH) gets serv prop.
- Release - DIH realeases rights to serv owner (quitclaim deed)
- Abandonment - not automatic; must be proven in court.
Private Controls on Real Property
- created by prop owners to protect their interest
- grantor/owner imposes limitations (no RV's in driveway)
- binding on all owners (present & future) & run with the land
- owners subject to injunction/$ damages for violations
- must be for a lawful purpose
- strictest rules prevail if multiple rules
Definition, Function, & Classification
Secures payment of a debt; claim on the land
Classifications: Involuntary/Statutory vs. Voluntary; Specific vs. General
- Lien Waiver - releases unrecorded lien
- Recorded Satisfaction - releases recorded lien
Specific - involuntary; prop taxes, mechanic's lien (dates back to when materials delivered), attaches to specific real or personal property
Mortgage Lien - voluntary; deed of trust, securing payment for the land
General Lien - involuntary; attaches to all property, ex. judgment lien (hosp. bills, child support, court ordered...)
IRS/State Liens - involuntary; for upaid taxes
Protects a primary residence against creditors
Does NOT protect against mortgage, prop tax, or mechanic's liens
All states differ in their determined values of homestead rights
Unauthorized use of another's land
A physical object intruding onto a neighboring property
Survey will reveal encroachments