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Terms in this set (111)
Everything above and below the ground
Two words to describe real estate
Landlord is... Tennant is
Change of ownership
Two different types of property
land and anything attached to it
What makes things attached to land?
Nailed, Glued, screwed, or buried
Highest and Best Use
The possible use of a property that would produce the greatest net income and thereby develop the highest value.
liquid investment- not real state
an asset, such as a stock, bond, or mutual fund, that can be easily converted into other investments or cash without much time or difficulty
used or designed for the place where people live
Real estate purchased for leasing or renting to tenants in order to generate ongoing monthly/annual income in the form of rent receipts.
Special Use Property
a property that has one highest and best use because of some special design. Don't produce public service Two examples : fire dept.
What are the three types of real property
Residential, income producing, special use
The right of "disposition" allows the owner to ______________.
sell, give away or pass on property to others.
Only legal right an owner has
The right of "enjoyment" protects owners against _______________.
interference from others or nuisances from neighbors. Includes some rights over adjoining land.
Right of Enjoyment
Use the land without interference from others. This right can be held by the owner or the tenant but not both at the same time
Right of Exclusion
right to exclude others from property. Can be held by owner and tenant but not both at the same time
Right of Possession
to use or occupy. This can be an owner or tenant but not both at the same time.
Right of control
the right to decide how to use your property. The owner or tenant can hold this right but not both at the same time.
A right or privilege or restriction/ rule that goes with ownership of land ("runs with the land")
An appurtenances is
Is legally part of the land and can not be separated from the land
the rights to the natural resources below the earth's surface
Water without a tide
Water with a tide
An owner's rights in land that borders on or includes a stream, river, or lake. These rights include access to and use of the water.
Non-Navigable Riparian Rights
Property line is in the center
navigable riparian rights
Property line is at the water line
Littoral property line is where
High tide line
Personal property is also known as... and has ?
Chattel and has mobility
An item of personal property that has been converted to real property by being permanently affixed to the realty.
Fixtures are _____ in the transaction
Ron writes a contract and mentions the ceiling fan. Who's property is the ceiling fan at the day of closing. Old owner or New Owner.
Lea has created a sales contract mentioning the refrigerator. After closing the buyer finds the fridge is not in place. Does the seller have the right to take the fridge?
She did not have the right to take it.
Real property becomes personal property when it is 'severed" from the land. Uninstall, unattach
Personal property being attached to become a fixture
Homes, plumbing, drainage, sidewalks are types of?
Two questions to ask to figure out if a fixture is a fixture
Is it attached? Was it attached by the owner or tenant?
Commercial reality. Can a business partner remove fixtures when selling a building
If A tenant attaches a fixture is it included in the home?
What would cause a fixture to not be included?
It is attached by a tenant
Steven is a tenant and owns a decorative mailbox. Robin buys the house. Who does the decorative mailbox belong to? Steven or the new owner
Are manufactured homes personal or real property. (Trailers etc)
Personal - it has wheels
Are modular property's personal or real property?
Lisa buys a lot of land with a manufactured home on the property. On closing day the manufactured home is gone. Is Lisa allowed to take the old owner to court over this?
No. Manufactured homes are personal property.
Do manufactured homes comply with local and state building codes?
Local building codes purpose is for what?
To keep you safe
_____ Are home who do not meet local and state building codes while ______ Are home that do.
Do all permanent structures comply to local/state codes
If a plant is planted in the ground what does that mean?
It is real property (unless it is planted every year)
What type of property is corn
When do crops have to be moved? At time of contract, at closing, never, at Harvest
Ownership by one person.
Concurrently owned property
More than one owner at a time
Automatic transfer of one owners share to other owner of the property when that owner dies.
If there is a survivorship do wills matter?
Stacy and will have survivorship with Jen and Brandon. In stacys will she has after she dies will will inherit her share of the property. When will will inherit the property?
He wont because they asked for the right of survivorship
The legal interest that a person has in real propery owners have an "estate" in a propery
Freehold mean you _____ the house
Two different types of estates
Freehold, Nonfreehold (Lease hold)
Free hold means you_____ the property
What do life estates stipulate?
The highest interest in real estate recognized by the law; the holder is entitled to all rights to the property. Permanent
What are two things a grantor can limit
Time and use
What restrictions are in a fee simple absolute estate
No additional restrictions from last owner
The owner of the life estate during the measuring ownership
The person, usually the holder of a life estate, against whose life the duration of the life estate is determined
The person whom the property reverts back to after the measuring life is over
The person who will become the owner of the property when the measuring life dies if the grantor decides that they do not want it to revert back
Fee Simple Determinable
What you can do. Very limiting
Fee Simple Determinable
An estate which has been created to exist only until the occurrence or nonoccurrence of a particular event. Returns automatically.
Fee Simple Defeasible
What (Cant) be done. Less restricting
Sole ownership has how many owners?
Concurrent owners has how many owners?
More than 1
Survivorship is the automatic transfer of one owners share to others of the property when the other owners die
Right of Survivorship
Upon the death of a joint tenant or tenant by the entirety the interest does not pass to the tenant's heirs but to the other join tenant(s).
When can you add a survivorship?
At time of sell. (You are able to sell the house to yourself and update survivorship at that time)
Does a survivorship override a will?
Tenancy by the Entirety
form of joint tenancy ownership for husband and wife
In a tenancy by entirety can one spouse sell without the others knowledge?
No. It takes 1 to buy and 2 to sell.
Joint Tenancy with Right of Survivorship
an ownership interest where two or more persons own an undivided interest in property
Can you sell your share without notifying others in joint tenancy
Yes- you are able to sell your share
What is the only type of ownership that needs all parties to agree to sell
Tenancy by entirety
If you buy a share from a person in a joint tenancy what is your status in the property
Tennant in common (new purchaser will not share survivorship with others in property) . Joint tenancy can only happen when 2+ people buy at the same time
Tenancy in Common
Shared ownership of a single property among two or more persons; interest need not be equal and no right of survivorship exists. Share will go to heirs
Can two people remain tenancy in entirety if divorce?
No- they can be tenants in common or joint tenancy (typically tenancy in common)
Donna buys a house in severity. Donna gets married 10 years later. Donna gets divorced. What happens to the property between Donna and her husband?
We do not know. It will be up to a lawyer and divorce Attorny.
an area that is shared with all other tenants except for air space.
Owners hold fee simple title to the airspace of their unit and their share of the common elements/ areas (land, clubhouses, parking, etc)
What does the 1986 act of north condominium act of 1986 mean
Buys have a 7 day right of recession if condo is Brand NEW never been occupied and is within the 7 day window.
Ownership that usually takes the form of shares of stock in a corporation owning the entire building and a proprietary lease giving the stockholder/tenant the right to occupy a unit for which he pays a proportionate share of the maintenance and operating expenses.
A unit that is owned by multiple people for a certain amount of time in a year.
A restriction on a property
Liens, deed restrictions, lis pendens, easements, encroachments are
A ______ Lien is a lien on the property and a general debt (lien) is attached to a _______
If a house is sold to Cindy without being settled does Cindy have to pay the Lien
Yes the lien stays with the property and not the person.
something pledged as security for repayment of a loan, to be forfeited in the event of a default.
Lien represents what?
Right to foreclose
Process by which the holder of a mortgage sells the property of a homeowner who has not made interest and/or principal payments on time as stipulated in the mortgage contract
A debt by a property owner for work done on their real estate or materials provided and used on their real estate.
Does a mechanical lien have the ability to foreclose on your house?
How long does a company have to file a mechanical lien
120 days after last day of work or materials dropped off.
How long does a company have to foreclose on the house
What is the specific order of lien priority
Real property taxes, mortgage, mechanical
Grants right to use land of another (no ownership involved)
an easement that runs with the land itself; continues indefinitely, transfers with title
Easements in Gross
Right to use land for a certain amount of time.
Appurtenant easements are always going to involve two ___________ and ____________ each other
Easement in gross involves one ______ and one ______
Person and property
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