Flashcards in Vocabulary Deck (141)
Bundle of Rights
Legal rights of the real estate title holder. Includes the:
and the right of disposition
right of exclusion,
right of enjoyment
right of possession,
right of control,
Generally immovable. Goes with the real estate.
Generally movable. Goes with the person. Personal property can be hypothecated, alienated and become real property (a fixture).
Often merely refers to tangible movable personal property.
Personal property that is now real property- for example, a pool covering or a painting that has been nailed to the wall. The acronym MARIA is a test for whether or not something is a fixture (Method Adaptability Relationship Intention Agreement).
Linked to a business. They are personal property- for example, a hairdresser’s chair or a dentist chair. Although the chair is attached to the ground, it is not real property- it is personal because when the hairdresser sells her property, the chair will be going with her as part of her business. The chair is personal because it belongs with the person, not the land.
Water rights over a moving body of water- for example, a river or a stream.
Land which abuts a body of static water- for example, a lake, sea or ocean.
An increase in actual land due to natural causes- for example, from the gradual action of the ocean or river waters.
Land is washed away by water- for example, a dam breaks and the rushing water washes away a strip of land.
Gradual recession of water, leaving land permanently uncovered.
Appurtenances include easements, stock in a mutual water company, covenants, and minerals (still in the ground). They are considered real property and “run with the land.”
Estate where ownership is held for an undefined length of time.
Fee Simple Estate
Also known as an "Estate of Inheritance" or "Fee Simple Absolute", this is a type of freehold estate. A Fee Simple Estate can be sold or inherited, and is not free of encumbrances (taxes). Fee Simple Absolute is the most interest that one can hold in land.
Fee Simple Defeasible
Puts conditions on the use of a property- for example, if the deed had a condition that no alcohol would be sold on the property and that was violated, the owner could lose title.
An interest in real property that lasts the length of someone’s life. It is a type of freehold estate because it is indefinite in duration. When the life tenant's life ends, title reverts to the original owner (reversion) or a remainderman.
Life Estate Pur Autrie Vie
An interest in real property that lasts the length of someone's life (who is not the life tenant). It is a type of freehold estate because it is indefinite in duration. When the "measuring life" ends, title reverts to the original owner (reversion) or a remainderman.
Less Than Freehold Estate
Estate where ownership is held for a defined length of time.
Estate for Years
Estate or tenancy lasting a fixed period of time- for example, a summer rental lasting from April 5 to September 19.
Estate where tenancy is renewed periodically- for example, week to week, month to month or year to year.
Estate at Will
Estate that can be ended at any time by the landlord or the tenant.
Estate at Sufferance
Estate where a tenant continues to occupy a property after a lease or rental agreement has ended- for example, a deadbeat tenant.
A contract between a lessor and a lessee which gives possession but not ownership, to the lessee. Also known as a "Leasehold Estate". The tenant doesn't need to sign a lease to become a lessee, acting as a lessee is enough. This is NOT real property, a lease is considered personal property. Think of them as a piece of paper- a lease is a piece of paper, and you can move a piece of paper, so leases are personal property.
Lease where the amount of rent paid by the lessee is a percentage of the gross income of the lessee’s business- for example, a commercial parking lot.
Also known as a Triple Net Lease, this is a lease in which the tenant pays for taxes, insurance and maintenance in addition to other fees like rent and utilities.
Lease in which the tenant pays a fixed amount to the landlord- for example, a standard residential lease.
A lease in which an existing tenant sub-lets (or leases again) the property to a third party. The lessee becomes the lessor.
Seller leases the recently-sold building from the new owner. The Vendor becomes the Lessee. This allows the seller to deduct all future rent payments as business expenditures.
Tenant Improvement Allowance
The amount a landlord is willing to spend so the tenant can retrofit or renovate a commercial space.