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Modern Real Estate Practice in North Carolina Chapter 2

bundle of legal rights

right of disposition, enjoyment, exclusion, possession and control

appurtenance

a right or privilege that goes with teh ownership of land

surface rights

rights to use the surface of the earth

subsurface rights

rights to use the space below ground level and to extract the natural resources lying below the earth's surface

air rights

rights to use the air above the land

riparian rights

granted to owners of land located along the course of a river, stream or lake giving the owner unrestricted right to use the water, provided such use does not harm owners upstream or downstream

littoral rights

rights granted to owners whose land borders oceans and large, navigable lakes that have a tide. Unrestricted use + land up to the mean high-water mark.

accretion

increase in land resulting from the deposit of soil by water

avulsion

reduction in land due to removal of soil due to flood or avalanche

reliction

new land acquired through water receeding or disappearing

lateral support

right to have adjacent property support the natural boundaries of the land

Plants (real property)

trees, perennial bushes, and grasses that do not require annual cultivation

emblements (personal property)

annual crops, such as wheat, corn, vegetables, and fruit

annexation

when personal property has become permanent improvements on the land

Total Circumstances Test

legal test applied by the courts to determine whether an item is a fixture

fixture

item that was once personal property but has been so affixed to land or a building that the law construes it to be part of the real estate

intention, relationship, method of annexation and adaptation to real estate

Four legal tests of a fixture

trade fixture

an article owned by a tenant and attached to a rented space or building for use in conducting a business

accession

process by which trade fixtures that are not removed at the end of the lease become the real property of the landlord

agricultural fixtures

although they appear to be trade fixtures, these are considered real property rather than personal property

Uniform Commericial Code (UCC)

if a homeowner purchases an item on credit and gives the creditor a security agreement, that items remains personal property and may be removed by the creditor in the event of default

estate in land

amount and kind of interest that a person has in real property

estate

the degree, quantity, nature, and extent of interest one has in real property

freehold estates

estate of indeterminable length, such as those existing for a lifetime or forever and include fee simple, defeasible fee, pur autre vie and ordinary conventional life estate with remainder or reversion

estates of inheritance

estates that continue for an indefinite period and are inheritable by the heirs of the owner

estate not of inheritance

estates that terminate on the death of the named person on whose life the estates are based

nonfreehold or leadhold, estates

include any estate that is not a freehold estate. Four types are: estate for years, from year to year, at will and at sufferance

fee simple estate

the highest type of interest in real estate recognized by law

fee simple absolute

a fee simple ownership on which there are no limitations (other than governmental restrictions)

fee simple defeasible

a fee simple ownership which may be lost (or defeated) on the occurrence or nonoccurrence of a specified event

fee simple subject to a condition subsequent

estat that dictates some action or activity that the new owner must NOT perform. Condition that some situation in the future does not happen

fee simple determinable

estate requires that a specified activity or land use continue "so long as" or "during the period". Based on time

future interests

the right of re-entry and the possibility of reversion

life estate

freehold estate in land that is limited in duration to the life of the owner or to the life or lives of some other designated person or persons (partial estate)

conventional life estate

created by grant from the owner of the fee simple estate

life tenant

owner of the life estate

pur autre vie

an estate known as an estate for the life of another. It is owned for the lifetime of some named third party, called the measuring life

remainder interest

grantor names someone other than the grantor to receive title to the property when the life estate terminates

remainderman

the person(s) named as remainder interest

remainder interest

a nonpossessory estate - a future interest and can be sold

reversionary interest

grantor does not name a remainderman, then ownership returns to the grantor when the life estate terminates

severalty

when title to real estate is vested in (presently owned by) one person or a single entity, such as a corporation, or limited liability company (sole owner)

tenancy in common

a parcel of real estate owned by two or more people with an undivided interest and that each owner can sell, convey, mortgage or transfer that interest through the right of partitition. Does not pass to another tenant in death

Termination of co-ownership by partition suit

when a division among co-owners cannot be agreed on voluntarily, the division can be ordered by a court in a suit for partition

joint tenancy

property owned by two or more people whre the ownership shares are always equal with undivided possession. Tenants must purchase the property together at the same time. Includes the option for right of survivorship

tenancy by entirety

special form of tenancy in which the owners must be husband and wife. Each spouse has an equal, undivided interest and on the death of one, full title automatically passes to the surviving spouse

common interest community ownership

form of ownership which contains elements of both ownership in severalty and concurrent ownership

Planned Unit Development (PUD)

method of real estate development where the major feature is flexible zoning where buildings may be clustered together

time-share

any right to occupy a unit of real property during five or more separated time periods (usually consisting of one or two weeks) over a period of at least five years

townhouse

group of two or three story units that are horizontally attached to each other. Each unit is individually owned Owner also owns the land on which that unit is built

condominium

where the owner holda fee simple title to the unit and also a specified share of indivisible parts of the building and land know as the common elements or common areas

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