Business Law chapter 26

Limit on property owner rights

-eminent domain: referred to as condemnation power of government to take land for public use.. can take land whenever public use requires it... also helps economic development -inverse condemnation: occurs when a government simply takes private property from landowner without paying any compensation, thereby forcing the landowner to sue the government for compensation -restrictive covenant: a private restriction of land.. restriction gets passed down

transfer of ownership

-real estate and sales contracts: requires certain formalities. parties enter into a detailed contract setting forth their agreement. -closing date and escrow: closing: fixes a date for performance that is four to twelve weeks after contract is signed... escrow account: deposits toward the purchase price normally are held in a special account=escrow -marketable title: the question of title to a particular parcel of property is especially important to the buyer. a grantor (seller) is obligated to transfer marketable title, or good title to the grantee (buyer) -implied warranty of habitability: the seller of a new house warrants that it will be fit for human habitation even if the deed or contract of sale does not include such warranty -duty to disclose known defects: duty to disclose any known defect that materially affects the vale of the property. buyer can rescind contract and sue for remedies

airspace rights

airspace only limited by encumbrances. limits include plains over the house and gov to produce artificial rain.

Recording statutes

allows deeds to be recorded in the public record -generally by county -recording feef -public notice -prevents fraudulent transfers -witness and notary requirements

deeds

deed: possession and title to land are passed from person to person by means of a deed, the instrument, the instrument used to transfer real property -essential elements: Names of Grantor and Grantee - Words of conveyance - Legal description of the land - Grantor's signature - deeds delivery -warranty deed: makes the greatest number of warranties and thus provides the extensive protection against defects of title -special warranty deed: warrants only that the grantor or seller held good title during his or her ownership of the property -quitclaim deed: offers the least protection against defects in the title.. grants whatever interest the grantor had to the grantee -grant deed: the grantor simply states "i grant the property to you".. carry implied warranty

adverse possession

is a means of obtaining title to land without delivery of a deed and without the consent of -or payment to- the true owner... involuntary transfer -to be held adversely: -actual and exclusive possession -open, visible, and notorious -continuous an peaceable for statutory line.. not interrupted by owner -hostile and adverse.. possessor cannot be living on the property with the owner's permission

Life estate

is an estate that lasts for the life of some specialized individual. -conveyance: or transfer of real property creates a life property -waste: the life tenant has the right to use the land, provided that he or she commits no waste (injury of the land) -leases: the life tenant an create liens, easements, and leases.

Leasehold estates

is created when a real property owner or lessor (landlord) agrees to convey the right to possess and use the property to a lessee for a certain period of time -fixed term tenancy: also called tenancy for years, is created by an express contract stating that the property is leased for a specified period of time, such as a month, a year, or a period of years -periodic tenancy: the lease does not specify how long it is to last but does specify that rent is to be paid at certain intervals -tenancy at will: ether party can terminate the tenancy without notice -tenancy at sufferance: the mere possession of land without right. is not a true tenancy because it is created when a tenant wrongfully retains possession of property

land and structures

land includes the soil on the surface of earth and the natural of artificial structures that are attached to it. land further includes waters contained on or under its surface and much of the airspace above.

subsurface rights

owner of surface can sell subsurface rights to another person. these can include mineral, oils, natural gas. subowner has right to call profit and take minerals of property

concurrent ownership

persons who share ownership rights simultaneously in particular property -tenancy in common: refers to a form of co-ownership in which each of two or more person owns an undivided interest in the property -joint tenancy: each of two or more persons owns an undivided interest in the property, but deceased joint tenants interest passes to the surviving joint tenant or tenants. -tenancy by entirety: joint ownership by husband and wife. different from joint because you need consent to transfer ownership. -community property: a limited amount of states allow property to be owned by a married couple. if held by community property then each spouse technically owns an undivided one-half interest in the property

plant life and vegetation

plant life is considered real property. sale of property includes plants. sold as estates in land.

nonpossessory interests

some interests in land do not include any rights to possess the property, easements, profits, licenses -Easement property appurtenant: arises when the owner of one piece of land has a right to go onto an adjacent piece of land owned by another -easement profit in gross: the right to use or take things from another's land is given to one who does not own an adjacent tract of land -creating easement: -implication: when the circumstances surrounding the division of a parcel of property imply its creation -necessity: does not require division of property for its existence -prescription: when one person exercises an easement, such as a right of way, on another person's land without the landowner's consent

fee simple absolute

the owner has the greatest aggregation of rights, privileges, and power possible. most complete form of ownership. exclusive possession and use of property. potentially infinite duration. can give property away by deed or will.

Zoning and law exceptions

variance: when a property owner wants to use his or her land in a manner not permitted by zoning rules, she or he can request a variance, which allows an exception to the rules.. the property owner requesting the variance must demonstrate that the requested variance: -is necessary for reasonable development -is the least intrusive solution to the problem -will not alter the essential character of the neighborhood

land use and zoning

zoning laws: the rules and regulations that collectively manage the development and use of the land in best interests of the community -land uses: residential: building for human habitation commercial: business use industrial: light and heavy manufacturing conservation: local soil and water conservation -zoning restrictions: garage be built certain feet away.. try to maintain certain visual aesthetics