Real Estate Course Level 1

Local Government

A city council changes the property taxes in the city. A local government alterations to zoning or

Quiz Level 1 Fee Simple Estates

Are a type of estate that is of indefinite duration, is freely transferable, and is freely inheritable.

Common Law

The side of law that arises from judgments and decisions made in courts rather than explicit legislation.

Quiz Level 1 a) because they are considered legal "people". Corporations are legal people, so they own property in severalty.

Why do corporations own property in severalty? a) because they are considered legal "people". b) because they have many board members. c) because they purchase properties in cash. d) because they have paid an incorporation tax.

Fixity

Addresses the permanence of land. This land can't be moved. How does this impact investments?

Quiz Level 1 Reversionary Interest

An interest in which upon the death of the life estate owner, full ownership reverts back to the original fee simple owner. i.e. Bob allows Grant to use his property. When Grant dies, Bob regains possession of the property.

Leasehold Estate (Add more info.)

Considered more temporary than freehold estates, as they usually last for a specific duration of time.

Georgia and Water Rights

Georgia operates under the Georgia Groundwater use Act, an act that dictates (as you probably guessed) how groundwater should be used: People can't take more than 100,000 gallons of water a day from a water source. If someone wants to use more than 100,000 gallons or 1,066,667 filled solo cups they'll need a permit. Most likely for Agriculture real estate. Encourage these types of owners to look into their appropriative rights regarding water usage.

Three Types of Co-Ownership

Here are the three types of co-ownership: 1. Tenancy in common. 2. Joint tenancy 3. Tenancy by the entirety These forms of co-ownership differ in both the way they are created and the way they are transferred. To understand how, exactly, those differences manifest, you first need to understand a group of conditions called the unities of co-ownership.

Quiz Level 1 Remainder Interest

Leo owns and occupies a property but, when Leo dies, the property will pass on to Tiana (a third party). An interest in an estate that will pass to another third party at the death of the person upon whom the life estate is based.

Residential Property

Single family, vacation properties, multi-family residences, townhouses, condominiums, apartment buildings, manufactured homes. Must be approved for the purpose of habitation.

Adoption

The customization of personal property for use with real property, such as drapes cut for a window in a room with a vaulted ceiling.

Freehold Tenant

The owner of a freehold estate is called a freehold tenant. Depending on the type of freehold estate, the freehold tenant may also have a right of disposition, or right to convey, the interest they own.

Conventional Life Estate

2 types of Life Estates: Legal Life Estate and Conventional Life Estate. Ordinary and Pur Autre Vie fall under Conventional Life Estate Any life estate created by property owners through a grant. Can come in different forms. Is a life estate in which the measuring life is that of the life tenant; it is an estate created by a deed that lasts for the duration of the tenants life. 2 different types of conventional life estates are: ordinary and Pur Autre Vie

Non-Possessory Interest or Estate

A future interest. (I will inherit and own this property in 10 years! I can't wait to change the curtains.) If you have a sandwich in your hands and are eating it, that is a possessory interest. If your dad is holding the sandwich and planning to give it to you after you laugh at his new joke, you have a non-possessory interest.

Quiz Level 1 Life Estate

A type of estate limited to the duration of a measuring life. A type of estate that allows for the remainder or reversionary interests.

Chattel

Another name for personal property. Rhyme: "since personal property is movable and chattel is personal property, cattle can be chattel."

Appurtenance

Are rights that run with real property ownership, most often transferred with the property, but possible to sell separately. Rights associated with real property that usually convey (transfer) when property ownership changes include: Right of access, Air and Water Rights, Mineral and Gas Rights, Oil Rights, Other Rights. e.g. Lessie wants to sell her house. The rights to oil under Lessie's house belong to an oil company. When Lessie sells her house the new owner must honor the preexisting rights of the oil company.

Commercial Property

Are used for business purposes. Generate revenue Are typically considered investment properties Include: Office buildings, retail complexes, gas stations, entertainment venues, restaurants. Larger commercial properties tend to be brokered by real estate companies that focus on this niche of real estate.

Federal Government

Controls, regulates, and maintains national parks with the help of the national park service. Decides to provide water sanitation services and relief to hurricane victims.

Bundle of Rights

Encumber: The right to Encumber is the right to put a property on the line as collateral for debt. The Right of control: The right of control is the right to alter, change or improve a property as an owner sees fit. Quiet enjoyment: The right to (Legally) use the property for your enjoyment.

Estate in Severalty = Sole Ownership

First, let's talk about estate in severalty. Remember estates from Level 1? This is another kind of estate that is defined by the kind of ownership a person has in the property. This kind of ownership is also sometimes called tenancy in severalty, sole ownership, or ownership in severalty. When an estate is held in severalty, it means that the property has only one owner, whether that is a person, corporation, or other legal entity. That person/entity can sell the property, hold it, rent it, will it to someone else upon their death, or do what they please with it, without the permission of anyone else. A Misleading Name: I know what you're thinking. The word severalty looks like several, and that's a pretty confusing term to use for exclusive home ownership. I completely agree, Yoni. I didn't choose the name. However, here's a way to help remember the term: Severalty comes from the word "severed." A property owned in severalty is severed from all owners except the one.

Fixity

Fixity or investment permanence, refers to the fact that real estate exists in a fixed location and cannot be moved. (this economic characteristic is very similar to the physical characteristic of immobility.) Fixity describes this truth about land (it can't be moved) from an economic viewpoint. Basically how the property will pay off itself over time. Economic characteristic of land. Investing in real estate tends to take a lot more money up front and takes a long time to pay off - because of fixity, investors must analyze the long term nature of owning property.

Surface Rights

Rights to access the surface area of a parcel of real property. They govern both natural elements and structures (called improvements) built on or attached to the upper most layer of land. Include: the right to build improvements on the surface that will enhance the value of the real estate. Building a bigger porch, fence, stable, swimming pool or extra room attached to the house or a barn is exercising surface rights.Reversionary Govern what happens on the surface of the land, and include natural elements and improvements.

Disclosure

Telling or disclosing about mold. Having to tell or write down things wrong with the property.

Erosion

The gradual loss of land over time. This most often happens when bodies of water wash away bordering land. the Grand Canyon was formed by the Colorado River through erosion. Forces of nature characteristic of land.

Agreement

When the parties to a contract agree that personal property will remain with the real property (make sure it's in writing!)

Legal Life Estate

2 types of Life Estate: Legal Life Estate and Conventional Life Estate. Any life estate created by a function of law. Can come in different forms. State law creates legal life estates. Pro tip: to keep legal life estates separate from conventional life estates, remember the word "legal": Legal Life Estates are mandated by legal action (state law). 3 types of legal life estates: Homestead, Dower and Curtesy, Elective share.

Close Association

A conceptual linkage to real property such as a garage door opener. Because a garage door opener is connected to a garage through a signal, it is considered real property.

Reliction

A gradual increase in land area when water gradually withdraws. i.e. lets say your property is on a lakefront in an area suffering a 10-year drought. Chances are the water level in the lake has gone down during the drought, making your property's land mass larger. Forces of nature characteristic of land.

Possessory Interest or Estate

A present interest (i.e. I own this property right now!) I'm living in it! I have the right to occupy it! Interests or estates may be classified as either a freehold estate or a leasehold estate.

Fee Simple Determinable

A type of fee simple defeasible estate which causes the title to automatically revert to the original owner if the deed requirements regarding property use are violated. The estate will come to an end automatically and immediately upon the occurrence of a designated event. The time of that occurrence is uncertain (because the occurrence depends on an action, not a date). No legal action is required of the grantor in order to assume recovery of this kind of estate. An easy way to remember this is thinking of the term "determinable".

Personal Property

AKA (personalty or Chattel) is an unattached movable asset not considered real estate. Usually goes with the seller in a sale, unless otherwise specified in the sales contract. Personal property in conveyed (transferred or changes hands) by a bill of sale or bequest (a request in someones will when they die). Includes: hair brush, furniture, coffee mugs, vacuum, lawn mower, car, dog, etc. Personal property is conveyed by bill of sale and real estate is conveyed by deed (contract). If someone is attached (loves their) to a ceiling fan, fridge, dishwasher, washing machine, the seller can call it their personal property and as a license holder I would be responsible to outline in writing on a deed or contract that it is personal property and leaving with the seller. It is not a piece of real property that will be conveyed with the house.

Act of Waste

Abuse of a property by a person who holds possession through a life estate. i.e. Angela grants a life estate to her son Brad, one day, the deli gets Brad's bagel order wrong and Brad destroys Angela's cabin and jet skis with a hammer. Brad does not have the right to destroy the cabin or jet skis because they belong to Angela. This is committing an act of waste.

Rule of Capture

Also called laws of capture, states that a land owner who drills a well for gas or oil on their land is entitled to all that well produces even if the gas or oil migrates from beneath a neighbors property. The property that gets all the oil is the one with the lowest point of pressure.

Fee Simple Defeasible Section: Determinable

An estate characterized by perpetual ownership on the condition, that the property is used for a certain purpose or under specific conditions. Ownership reverts (goes back to) the original owner if these stipulations are violated, but the condition runs with the land. Also called qualified fee estate. A little more complex than absolute estates, and come in different forms! Defeasible is a term used to indicate that something is capable of being annulled or made void. Defeasible estates are any estates conveyed (transferred) by a grantor with conditions that- if violated -could make them null and void. You must follow conditions or it's null and void (you lose the property).

Fixture

An item of personal property that has been converted to real property by being permanently affixed to the realty. A ceiling fan in a box is personal property. A ceiling fan attached to to the ceiling is real property. Garage door opener becomes real property when linked to garage doors.

M Adaptability R I A

Anything specifically adapted to the home (like window shades) or anything that is integral (having all parts that are necessary to be complete) to the operation of the home (like a box air conditioning unit or a specially sized door) could be a fixture.

Industrial Property

Appropriate for manufacture of products or materials. Operating as distribution facilities. Serving as warehouses. Leases are much longer than residential or commercial use. Include: manufacturing plants, distribution facilities, warehouses, storage facilities, research facilities, data centers.

Quiz Level 1 a) undivided Interest Undivided interest grants both Brian and Steven the right of possession of the whole property, not simply a portion of it.

Brian and Steven co-own property. Brian can't tell Steven that Steven can only use a portion of the property, and vice versa. Which co-ownership concept is this an example of? a) undivided Interest b) right of survivorship c) littoral rights d) illiquidity

Modification

Building off of situs, modification or improvability, refers to the fact that the value of land can be affected by human made changes to the land. If the city decides to build a park in a particular zip code, then the houses that border that park will probably appreciate in value. This is also true if the city decides to add a train stop near a neighborhood. Put simply: human made changes (modifications) can and will affect the value of land. A new amusement park (Disney World) would raise the value of nearby property. Addresses human-made changes and improvements. What nearby modifications affect this land?

Pur Autre Vie

French for life of another, A conventional life estate Pur Autre Vie is a life estate in which the measuring life is based on someone other than the life tenant. When the measuring life ends, the estate is returned to the original owner (grantor) or passed on to some other designated person according to the provisions of the conventional life estate. e.g. Lessie owns a fee simple estate and conveys (transfers) a life estate in the property to Paula (her niece and private nurse). Paula is the life tenant for the duration of the life of Burt (Lessie's elderly uncle). Paula is the life tenant. The measuring life is Burt's. Upon Burt's death, the life estate ends and subsequent ownership is ranted to Elisa, as stated in the deed. But if Paula dies while Burt is still alive, Paula's heirs may inherit the life estate. However, if Burt dies, Paula's heirs will lose the estate.

Littoral Rights

Govern lakefront or oceanfront property and usually allow the property owner to use the water bordering their property. Littoral use prohibits the property owner from artificially changing the water's location. Easy way to know the difference: Littoral right (lakes and Oceans), Riparian Rights (rivers and streams). The water is always considered navigable, so ownership is always only to the water's edge or high tide.

Riparian Rights

Govern the use of flowing water, such as rivers and streams that pass through or border a property. In accordance with riparian rights, a property owner does not own the water, but they may use the water and share those same rights and uses with other property owners who's land also interacts with the water. Littoral =Lake, oceans Riparian = River, streams

Fee Simple Estate

Grants the most unlimited, most absolute interest in real property. This means that there are no conditions on the title. (it is also known as a fee interest or simple fee estate.) A fee simple estate is: of indefinite duration, freely transferable, and freely inheritable. When a grantor conveys (transfers) a fee simple estate, the grantor conveys (to the grantee) full ownership of a property for the grantee's lifetime. An estate in fee simple is the highest of fullest type of interest in real estate recognized by law. The holder is entitled to the full bundle of rights connected to the property. There are no limits or conditions on the title of a fee simple estate and the grantee (owner) has the right to use, occupy, and or dispose of the property as they wish.

Reversionary Interest example

Hal is the owner of a fee simple estate. He grants a life estate to Sandra (Sandra's life being the measuring life) and does not designate a remainder interest in the property to a third party. So, even though Valerie (Hal's friends) thought she would be receiving the property when Sandra dies, property ownership will revert back to Hal or Hal's heirs instead. For the duration of Sandra's life, Hal's reversionary interest in the property is a future possessory interest because it relates to the property's future as a possession. Enrique grants an estate to Victor. When Victor dies, the estate will go back to Enrique. The estate could be several types of estates, but is definitely a reversionary estate.

Corporations Are People Too

Holding an estate in severalty isn't just for people — it's for corporations too! Even though a corporation may have several different owners (or shareholders), the law views corporations as single, legal entities. Property held by a corporation is ownership in severalty, however weird that may seem.

Doctrine of Prior Appropriation

If the state owns the land: Appropriative rights are water rights (granted by the government) that allow a party to take water from a body of water for a specified and approved use. Water rights vary by state, and states are empowered to pass laws governing the water rights and access in their state. Some states, especially where water is scarce have adopted these rights. This doctrine grants a state the power to control and regulate all water resources within its borders, and property owners must apply for a permit to use a water source.

Immobility

Land = Immobile You can't move land its immobile. When you buy land you must go to the land, when you buy personal property (phone) you take it with you.

Indestructibility

Land = indestructible Land may: go under water, become a crater, have improvements added to it (like houses). But whatever happens, the land will still be there. It's indestructible, remember? And that's something you can't say for personal property. Physical characteristic of land.

Real Property

Land plus permanent improvement. It is considered real estate. Once something becomes real property, it generally goes with the property when its sold and is conveyed by deed. Includes: a home, an industrial warehouse, a 10-acre soybean field, a condo, Trump Tower.

Non-homogeneity

Land=Non-homogeneous Meaning pieces or parcels of land is different and not the same as another piece or parcel of land. Every piece of land is unique and also differ in their position on earth. Physical characteristic of land.

Remainder Interest example

Lessie has a fee simple estate. She grants a life estate to Margarita (for the duration of her life) and designates a remainder interest to Manuel. When Lessie dies, property ownership passes to Manuel (or his heirs) as the heirs are the remainderman. For the duration of Lessie's life, Manuel's remainder interest is a future possessory interest.

Ownership in Severalty Example: Leti's Bachelorette Pad

Let's look at an example! Before Leti Homeowner married James, she bought a sweet bachelorette pad downtown. Young, single, and carefree (but not SO carefree that she wasn't saving for a down payment), Leti purchased a cute one-bedroom condo in a converted warehouse building. Leti supplied the down payment, Leti took out the loan, and it was only Leti's name on the title. She owned that apartment in severalty, and she decorated it exactly how she wanted. Did it look like a Home Goods threw up in there? Yes. Was she the happiest 28-year-old homeowner on the block? Also yes.

More on Estates

Life Estates, Fee Simple determinable estates, and fee simple on condition subsequent estates could all be considered remainder estates. Estates may also be labeled as contingent remainder estates. These estates designate a remainder-man, but also come with a condition (sound like those defeasible estates we learned about earlier?) The same goes for reversionary estates, or estates in which ownership will revert back to the original owner. It's all the same information, concepts, and types of estates. They're just grouped a little differently.

M A R Intent A

Means someone who installs something (lets say a $2,000 TV set on the wall) will want to take it with them when they leave. e.g. Paintings, custom shelves, basketball nets, guitars hung up on the wall etc.

Special Purpose Property

Often publicly owned. Require substantial reinvestment to convert to another purpose or use. Do not come up for sale as frequently as other types of property. Includes: churches, synagogues, schools, recreational facilities, cemeteries, fire stations, police stations, government-held land.

Subsurface Rights or Mineral Rights

Ownership rights to all that is found beneath the surface of the tract of land owned, extending downward to the center of the earth. The importance of this right lies largely in the fact that it may secure ownership of mineral deposits located under the surface of a property. For this reason, subsurface rights are also commonly referred to as mineral rights. i.e. Kevin moves into a home, discovers buried treasure, but Lessie has the rights to the treasure. This is called subsurface rights. Note: If Kevin owns the surface rights to a property and Lessie owns the subsurface rights. Lessie has the right to enter Kevin's home and extract the treasure without damaging the surface. Deal with whats beneath the surface, and can also be sold separately. Subsurface right holders have priority over surface right holders, so long as the surface isn't being disturbed.

Dower and Curtesy

Part of Legal Life Estate. NOT recognized in Georgia! The right of a spouse to inherit property held in their spouse's name after that spouse dies; dower is the word used for women, curtesy for men. Property is transferred if one spouse obtains a release from another spouse. A wife's future interest in an estate (because of dower) is called inchoate dower. If a wife's partner dies and the wife takes ownership of the estate, this is called consummate dower. Dower and curtesy are uncommon, as most dower and curtesy laws have been replaced by community property laws or elective share. Georgia does not recognize dower or curtesy. As a license holder you won't be handling any transactions subject to these laws. Might still show up on the exam.

Emblements

Plants that are cultivated and harvested are considered personal property and referred to as emblements.

Agricultural Property

Properties dedicated to the commercial cultivation of food, feed, and fiber. Commercial ventures that provide us with fruits, vegetables, live stock, plants, wood products, and other resources that are an essential part of our daily lives. Includes: Ranches, Orchards, Nurseries, greenhouses, pastures, feed lots.

Percolating Water Rights

Refer to the use and ownership of underground water. Real property owners have a right to access that water by installing wells for their own use. If a homeowner wishes to build a well, they will have to perform a perc test, which will determine if the land absorbs water quickly or slowly. The water table, or depth at which percolating water sits, is also an important part of percolating rights.

Method of Attachment A R I A

Refers to how the fixture is installed. The seller of a house (during the sale of a house) strips the chandelier from the ceiling to sell it on Ebay. When the buyer moves in there's a hole in the ceiling. The buyer was not aware of this it was not in writing in the deed (contract)!

M A Relationship of the parties I A

Refers to landlord-tenant relationships. When a tenant installs things in a home, they are allowed to take them when they leave. Like a trade fixture. E.G. Lenny rents a commercial property to house his bakery. He installs shelves in the unit to hold his 47 types of flour. When Lenny's lease is up, he can take his shelves with him.

Situs

Refers to the economic significance of a property's location. The popular phrase "location, location, location", is referring to people's preferences of living in certain areas. Like schools, offices, etc. i.e. A buyer wants to move from a rural area to a home in a nearby city because the city has a strong local economy with plenty of job opportunities. This buyer is influenced by Situs. People prefer land for its location, both for natural (beach) and human-made reasons (good schools). Economic characteristic of land. Addresses the significance of a property's location. What might make this property's location especially valuable?

Part of Legal life Estate: Elective Share (NOT recognized in Georgia!)

State laws that let a spouse make a claim to their deceased spouse's property, despite what is in the will. The surviving spouse has to make a claim to the property and often gets a percentage of the value. If no claims are made, the estate passes per the will or other applicable law. Surviving spouses are eligible to get a percentage of their dead spouses property, even if they were not included in the will, if the surviving spouse makes a claim on time (if they don't, the estate goes to legal heirs). Georgia does not recognize elective share laws. Most states do recognize these laws, so you'll have to know them, regardless. What if you get an out-of-stater looking to buy? (or what if you get a question about it on the exam?)

Homestead Laws

State laws that protect a homeowner from the loss of their principle residence from the claims of most creditors and require both spouses to execute any instruments of conveyance. In other words, they keep a person's primary residence from being forcibly sold to pay debts or the debts of a deceased spouse. Primary residences with associated debts are exempt from being required to be sold to pay for those debts if: the family lives in the homestead. The property is abandoned. The estate can be conveyed if both spouses agree on conveyance. The debt exception lasts for the duration of the life of the head of the house (and then passes to the children etc.) The exemption may be automatic or owners may need to ask for it, depending on the situation. In Georgia, the homestead protection can be applied to various property types: Real property (such as condo, home, co-op), personal property, and burial plots. The homestead exemption is automatic in Georgia (meaning less paperwork). Note: Not all debts are exempt under homestead laws, such as tax, seller financing, home improvement, and mortgage debts.

Severance

The act of converting real property into personal property. Severance is the opposite of annexation or affixation.

Fee Simple Estate (diagram)

The complete ownership of a property; may be either absolute or defeasible (determinable or condition subsequent).

M A R I Agreement between the parties

The contract trumps all, so whatever has been agreed upon by the parties to the transaction (in writing) is what happens.

Correlative Rights

The doctrine of law which allows riparian owners in certain states to use only a reasonable share of the water during periods of drought. Correlative rights correlate to the amount of water available. Fun fact: I n some states like Colorado, there is even a limit to how much rainwater a property owner can capture and store.

Scarcity

The economic characteristic that informs the economic principle of supply and demand. The supply of land will never increase, but the demand for land will increase as the population grows. And this is because land is scarce. The supply of land is finite. There are no coastal property factories. Economic characteristic of land Addresses supply and demand. How scarce is the land?

Remainder Interest

The interest in an estate that will pass to another party (other than the grantor) at the death of the person upon whom the life estate is based (the recipient of the future remainder interest is referred to as the remainder-man. i.e. Lessie owns a fee simple estate. She grants a life estate to her grandma, Rose. When Rose dies, Lessie designates that the property goes to her husband Joe. Note: In Georgia, estates are sometimes labeled remainder estates.

Reversionary Interest

The interest in an estate wherein, upon death of the life estate owner, full ownership reverts back to the original owner (grantor). This may also be referred to as right of reverter. i.e. Lessie is a young woman who owns a fee simple estate. She grants a life estate to her grandma. when her grandma dies, the property goes back to Lessie (the original owner/grantor).

Supporting Rights

The legal concept of responsibility adjacent landowners share. Lateral support is provided by adjacent properties. Subjacent support comes from the underlying earth. The landowner could be liable for damages done to a property if excavating for minerals or oil. Are a property owner's right to not have their land slide around because of what a neighbor is getting up to. Lateral support comes from adjacent properties and subjacent support is from below.

Fee Simple Absolute

The maximum possible estate or right of ownership of real property, has no restrictions and is given freely to heirs, the most common type of residential real estate). Also called a fee title estate.

Fee Simple Condition Subsequent

The other type of defeasible fee estate. The same as determinable estate in that it comes with certain requirements (or conditions). The difference between them is that the grantor must appear in court and prove that the condition has been violated. Must also happen within a certain time frame. This change of ownership is not automatic, as it is with a fee simple determinable estate. Once the court is satisfied with an established condition violation, the grantor can exercise their right of reentry. which is the right to retake possession of the property.

Life Estate

The other type of freehold estate. A life estate is so named because it is limited to the duration of a measuring life (this may be the life of the tenant or the recipient of the life estate). The life tenant enjoys the full bundle of rights of ownership, but they do so only for the duration of the measuring life. Life estates can be created by private parties or by law (under specific circumstances). Life estates create a future interest for the person next in line to receive title of the property. These future interests can be remainder interests or reversionary interests.

Annexation

The process of converting personal property into real property is called annexation or affixation. The best practice is to list all fixtures in writing. In the sales contract. Achieve no miscommunication between the buyer and seller.

Accretion

The process that results in the gradual increase in land area through deposits of soil by natural forces. i.e. Soil is deposited over time on the shore banks and deltas of a river. (The soil that gets deposited is also referred to as alluvion). If the Wet River floods and soil is lost at the mouth of the river, the soil still exists, right? It will have to end up somewhere, resulting in accretion.

Illiquidity

The relative difficulty of converting an asset to cash without loss of value. It takes time to convert property into cash, and to rush the process, you would likely have to drop the price (and lose value). Land does not convert to cash very quickly relative to many other asset types. Economic characteristic of land. Addresses the difficulty of converting an asset into cash without losing value. How fast could this land be sold? At what price?

Air Rights

The right to use air space above the surface of land. Air space is the area above ground that is owned along with the property. It could include space above a piece of land, or the space owned inside a condominium unit. These rights may be sold or leased independently of the tract itself. Planes and air travel also affect air rights. If a telephone company built a reception tower that reached the moon, it would get in the way of some commercial or military flights. Have to do with the area above the property, and can be sold separately.

Avulsion

The sudden loss of land by flood or when a stream or river changes course. Because it's a sudden change, no title is lost. Avulsion is caused by water. This is not to be confused with Alluvion, which is the soil that gets deposited in accretion. Your property sits near a river, river over flows and washes away your soil or land with it. Forces of nature characteristic of land.

Co-Ownership: Owning Property With a Pal

The word "co-ownership" might be more familiar to you than the word "severalty," but the actual process of buying property as a co-owner is more complicated than buying alone. Who gets what? Who owns what part? What happens if you want to sell? All of that depends on the kind of co-ownership you have. There are three kinds of co-ownership, and we're going to learn about each and every one. But First, Some Co-Ownership Concepts You Need to Know: Before you can understand the differences between co-ownership types, you need to understand these two concepts: . Undivided interest: a type of interest that gives each co-owner the right of possession of the whole property, not simply a portion of it. . Right of survivorship: the statutory principle of survivorship tenancy, which means that when one co owner dies, their ownership interest reverts to the surviving co-owner(s) . Without the right of survivorship, a co-owner's interest goes to their heirs if they die, instead of the remaining co-owner(s). What Kind of Co-Ownership Should a Person Choose?: Co-owners will need to decide how they want to take title — in other words, what kind of co-ownership they want to have. You'll be learning about the kinds of co-ownership available, but it's not your job to help them decide. In fact, you could get in trouble for practicing law without a license. If buyers ask you how they should take title, encourage them to speak to their lawyer about the advantages and disadvantages of each type of co-ownership.

Defeasible Estates

There are 2 kinds of defeasible estates: 1) Determinable 2) Condition Subsequent (on separate note card) Their qualification as one or the other is determined by the language around the condition attached to the property. A fee simple determinable is a type of fee simple defeasible estate which causes the title to automatically revert to the original owner if the deed requirements regarding property use are violated. The estate will come to an end automatically and immediately upon the occurrence of a designated event. The time of that occurrence is uncertain (because the occurrence depends on an action, not a date). No legal action is required of the grantor in order to assume recovery of this kind of estate. Pro tip: An easy way to remember this key term is by focusing on the word "determinable." It's determined that ___ will regain the property if ____ happens.

Fructus Naturales

Trees, persistent decorative plants (perennial landscape plants), and uncultivated plants are referred to fructus naturales and are considered to be real property because of their permanence.

Trade Fixture

Type of personal property that is owned by and needed for a tenant's business. It is not subject to the same rules of transfer as fixtures in general. Shelves that a store owner attaches to the wall when leasing a storefront in a strip mall are trade fixtures that the store owner will take with him when his lease is up.

Water Rights

Water rights can be a bit more complex than air rights. When thinking about water rights, license holders should ask themselves 3 questions: 1) who controls the water? The state or the property owner?, 2) Is the water moving?, 3) Is the water navigable? Includes: the doctrine of prior appropriation, Riparian rights, Littoral rights and Percolating Rights. Are broken down into Riparian Rights (for flowing bodies of water) rivers and streams. Littoral Rights (for still bodies of water) lakes and oceans. These rights are determined by states and even municipalities.

Quiz Level 1 Supporting Rights

What rights hold owners liable for damages caused by activities such as land collapsing from the excavation of a neighboring property? These rights address the legal concept of the responsibility adjacent landowners share.

Curtesy Life (Determinable condition subsequent)

What type of estate does not require legal action for the estate to revert to the original owner if property conditions are violated?

Freehold Estate

When a land or real estate interest is described as a freehold estate, it means that the individual with the interest has some degree of ownership for an undetermined and therefore unlimited period of time. There are 2 types of freehold estates: Fee simple Estate and Life Estate.

Encumbrance

a non - possessory interest in a property that burdens the title. This means an encumbrance is against the land or the use of the land; it is not a personal vendetta against the owner of the land (this is real estate, not a soap opera). Personal vendetta: is when someone holds something against you. A restriction or limitation on a property that might be annoying or limiting to an owner.

Ordinary Conventional Life Estate

is a life estate in which the measuring life is that of the life tenant. It is an estate created by a deed that lasts for the duration of the tenants life. Often referred to as a conventional life estate and is NOT always called an ordinary conventional life estate. E.G. Timmy has a fee simple estate and conveys the estate to Jody for Jody's lifetime. Jody is the life tenant and his life is the measuring life. Upon Jody's death, the life estate terminates. Ownership of the property is passed on to Breck, as dictated in the estates deed.

Fee Simple Defeasible Condition Subsequent

is the other type of defeasible fee estate. The same as determinable estate in that it comes with specific requirements (or conditions). The difference is that, for ownership to change, the grantor of the estate must prove (in court) that the defeasible fee estate condition has been violated. This must happen within a certain time frame. This change of ownership is not automatic, as is the case with fee simple determinable estate. Once the court is satisfied with an established condition violation, the grantor can exercise their right of reentry, which is the right to retake possession of the property.

Accession

is the right to all that one's own property produces, including that which is added, either naturally or by human action, to the property already owned. This often comes into play when dealing with crops. Can also mean increasing, adding, or coming to possess a right. The owner has the right to whatever is produced by what they already own. e.g. Strawberries sprout in your backyard. you did not plant them, but you still have the right to pick and eat them.