Intro to interest in real estate/Forms of ownership

Lease hold estate

(1) there is possession of the land, but there is no ownership, and (2) the estate has a definite duration.

Four Common Unities

-unity of title -unity of time -unity of interest, and -interest of possession.

In Texas, fee simple estate in land may be held by one owner or by two or more co-owners under one of the following three forms of ownership:

1.Severalty 2.Joint Ownership 3.Tenancy in Common 4.Joint Tenancy 5.Community Property 6.Trust Properties

In what year did the Texas Supreme Court invalidate the state's right to retain all mineral rights to land?

1901

Which Constitutional amendment established the U.S. land ownership concept?

5th amendment

How long does a Chapter 13 debtor have to reinvest the proceeds of his or her home sale in a new homestead or lose their homestead tax exempt status, and therefore return the proceeds to the bankruptcy estate?

6 months

Encumbrances

A claim against, a limitation on, or a liability against real property

Which kind of easement not only allows access to another person's property but also allows the removal of material resources contained in the property?

A profit

Tenancy by the Entirety

A tenancy by the entirety is a particular version of joint tenancy between legally married spouses.

Which of these are forms of tenancy? -Community property -Joint tenancy -Tenants in common

All of these

provided for a similar investment structure in real estate as mutual funds provide for investing in stocks.

Class C do not have pass-through taxation

Community Property

Community property is a special arrangement that exists between married spouses and is only recognized in a handful of states, including Texas.

The largest and most complete bundle of rights of ownership is:

Fee simple absolute

Fee Simple Absolute

It is the largest and most complete bundle of rights one can hold in land: if you own property solely in your name, you own all the rights to that property.

Right of Survivorship

Joint tenancy also establishes the right of survivorship for joint tenants should one of the joint tenants die.

Joint Tenancy

Joint tenancy is a legal arrangement where two or more individuals have undivided ownership of a property.

Riparian Rights

Owning land that borders on a river or stream carries with it the right to use and enjoy the water in common with other landowners whose lands border the same watercourse.

Joint Ownership

Properties can be owned by more than one party. This is known as either joint ownership or a concurrent estate.

Trusts

Real estate property can be held by a third party in an arrangement

The purpose for creating the homestead exemption is:

So that creditors cannot seize a family's home

Tenancy in Common

Tenancy in common is significantly different from joint tenancy or tenancy by the entirety.

Partnership

The business operates under the owners' names or a DBA, the owners are responsible for all acts of the business, and profits and debts pass through the business directly to the owners.

Public beach policy for the state of Texas includes a declaration that:

The public shall have the free and unrestricted right of ingress and egress to and from the state-owned beaches bordering on the seaward shore of the Gulf of Mexico.

Joint tenancy is ended when which of the following unities is ended?

Unity of time

Limited Liability Company

When a group of persons (or a single person) wish to engage in a business but do not want to be held liable for the debts of the business, they can create a fictional individual. This fictional, or legal, person is the corporation or company

One Person (Severalty)

When a single person owns a property alone it can be known as ownership in severalty.

The party holding another property's "stick" has

a claim to a right or that interest in that property

A testamentary trust is created through what?

a will

Affirmative Easement

allow the holder of the easement the right to use another person's property.

Easement in Gross

allows rights to access a servient estate without the easement being attached to, or benefiting, a particular piece of land.

The Right of Enjoyment

also grants the right to collect the commercial profits that are generated by the property, such as rent or admission fees. This right can be constrained without being removed. In other words, a party may be able to use the property but only in specific contexts.

Living Trust

also known as an inter vivos trust, is created during a person's lifetime to manage a person's assets and/or property while living and then seamlessly after the person dies

Federal Tax Lien Priority

are assessed for things like non-payment of federal income tax

Judgment Liens

are established as a result of a lawsuit judgment. The court-ordered lien is placed to guarantee the payment of the damages to an injured party.

per the 10th amendment of the constitution the powers not specifically delegated to the federal government

are reserved to the states or the people

Littoral Rights

concerned with the use and enjoyment of the shore.

Mortgages are a common type of __________ lien.

consensual

Liens can be separated into three general categories

consensual liens, statutory liens, and judgment liens.

An __________ is an easement that is established without the permission of a landowner or the existence of a situation that requires an easement.

easement by prescription

The Right of Exclusion

has the recognized authority to determine who can and cannot cross into a piece of real estate. The right to exclude parties from accessing a property is part of what makes private property private.

Which of these IS NOT a form of common interest ownership? Co-op Timeshare Condo Hotel room

hotel room

Covenants

is a contractual agreement and is usually written into the document that grants the title.

Fee Simple Defeasible

is a conveyance of property with conditions placed on it.

Liens

is a legal claim made on another person's property for the purpose of securing or repaying a debt

Consensual Liens

is a lien that is voluntarily agreed to, most often as a result of a loan or other credit extension

License

is a privilege given to someone to use a piece of real estate.

Profits

is a specific kind of easement that not only allows access to another person's property but also allows the removal of material resources contained in the property.

Right-of-Way Grant

is a temporary easement that allows a utility access to a public property in order to install or maintain a piece of equipment like a water pipeline.

easement appurtenant

is an easement that attaches to a specific piece of land and benefits the easement owner.

Reversionary Interest

is an interest in property in which a party's right to occupy land is subjected to a certain condition(s) and if unfulfilled or violated, all interests in the property revert to the original owner.

Easement by Necessity

is created solely by the necessity of the situation. The easement goes away, however, if and when the situation requiring the easement goes away.

Testamentary Trust

is created through instructions in a deceased's will and goes into effect upon an individual's death

Lien Priority

is established by local law

Statutory Liens

is one that has some basis in federal or state laws. This kind of lien does not require the consent of the party having the lien imposed upon them.

Express Easement

is one that is explicitly laid down in a contract, deed, or will.

Easement by Prescription

is one where an easement is established without the permission of a landowner or without necessity.

The Right of Control

is the official recognition that the holder of this right is allowed to determine how the property is used.

Easements

is the right of one party to use the property of another party

The Right of Disposition

is the right to rent, transfer, sell, or (in some cases) abandon a property. they can give up some, or all, of their control over a property

Groundwater

is the water held underground, below the earth's surface, in the soil or in pores and crevices in rock and below the saturation point.

Conservation Land Trusts

land trust is created by a private, nonprofit organization that generally has the stated goal of land conservation.

Fee Simple

means complete ownership, including the right to transfer it at will or upon death.

The Right of Possession

means that a party is officially allowed to occupy and exercise direct control over a piece of real property.

Right of ownership

means that a party is recognized as being allowed to hold the bundle of rights and organize the distribution of rights that the bundle contains.

Sole Proprietorship

means that an individual is engaged in business as themselves. The business must be done under the individual's name, that individual has full responsibility for acts committed by the business, and all profit from the business is attributed directly to the individual (and taxed accordingly)

Encroachments

occurs when a property owner builds something, intentionally or unintentionally, that sits, at least partially, on a neighboring property owner's land

Easement by Implication

occurs when there is a subdivision of a property and one of the smaller sections requires an easement

Negative Easement

on the other hand, allow the holder of the easement to prevent affected property owners from doing something with the property

Escheat

or revert, to the state.

Real Estate Investment Trusts (REITs)

provided for a similar investment structure in real estate as mutual funds provide for investing in stocks.

Remainder Interest

refers to someone with a future interest in an asset. It may be a future interest in the estate created by a trust, a contingent interest when a life tenant surrenders a claim to the estate, or a vested interest that becomes effective at a specified future date

Which type of common property ownership is for the exclusive use of a property for a specified number of days each year?

resort timesharing

Which of these IS NOT a source of "water rights" issues? -Surface water -Swimming pools -Navigable waters -Subsurface water

swimming pools

Line of Vegetation

the extreme seaward boundary of natural vegetation which spreads continuously inland.

police power is the ability of the state to?

to regulate the citizens behavior and enforce order within their jurisdiction, for the betterment of the health, safety, morals, and general welfare of their inhabitants

Who Is Subject to a Covenant

usually applies to the current owners, and thus expires when the property is transferred to a new owner.

Bundle of Rights

we are looking at the property rights held by individuals when they own or rent real estate.

Private Land Trust

where a trustee is appointed to maintain ownership of a piece of real property for the benefit of another party: the beneficiary of the trust.

Rule of Capture

which means that a landowner has the right to pump as much groundwater (the general rule of capture covers groundwater, oil, gas, and game animals) as they choose without holding them liable for damage to others through their usage

"First in Time, First in Right"

which simply means that older loans must be paid off before younger loans.