Chapter 35

Ownership in Fee Simple: Fee simple Absolute

An ownership interest in land in which the owner has the greatest aggregation of rights, privileges, and power possible Owner: Has rights of EXCLUSIVE possession and use of the property - Subject to zoning, noise, and environmental laws - Nuisance: Use of a property in a way that interferes with others' right to use or enjoy their own property - Can give the property away or transfer it Upon death, the property passes to his/her heirs - Ownership interest is potentially infinite in duration and is assigned forever to a person and his/her heirs without limitation or condition

Real Property: Fixtures

Certain personal property which become so closely associated with the real property to which ti is attached that the law views it as real property Attached to the real property in a permanent way: - By means of cement, plaster, bolts, nails, roots, or screws - Can be physically attached to the land, to another fixture, or even without any physical attachment to land (statute) - Ultimately, if owner wants something to be a fixture, it is considered a fixture Included in a sale of land if the sales contract does not provide otherwise Practical advice: Make sure fixtures are listed to avoid a dispute

Leasehold Estate

Created when a really property owner or lessor (landlord) agrees to convey the right to possess and use the property to a lessee (tenant) for a certain period of time Real property owner maintains the right to enter the premises to ensure that the tenant is not committing waste Key: Right to possess the land is temporary

Landlord-tenant relationship

Established by a lease contract Possession: Landlord must give tenant possession of the property - Neither tenant nor anyone else can disturb tenet's enjoyment of the property - Essence of the landlord-tenant relationship Use and maintenance of the premises: Tenant can generally use the leased property in any way that is legal and does not injure landlord's property - Tenant is responsible for damages, but not wear and tear - In some states, landlord must maintain premises Implied warrant of habitability: Landlord must ensure leased premises are habitable: safe and suitable for people to live - Landlord must repair substantial physical defects Rent: Tenant's payment to the landlord for tenant's occupancy of the leased property - Tenant may be able to withhold rent as remedy but must comply with applicable state law

Real property: Airspace rights

Flights over privately owned land normally do not violate property rights unless the flights are low and frequent that they directly interfere with the owner's enjoyment and use of the land

Jason is the owner of a large tract of land. Jason sells the property to Bertha using a quitclaim deed. Bertha later learns that Michael has a right to extract minerals from the property. In this case, Bertha:

Has no claim against Jason

Real property: Subsurface Rights

In many states, land ownership may be separated so that different people may own the surface vs. the subsurface of a piece of land Subsurface rights can be valuable (minerals, oil, natural gas) Each owner can pass title to what she/ he owns without consent of the other owner Conflicts can arise however: Statutory law or common law may make one party's interest subservient (Secondary) to the other party's interest

Real Estate Sales Contracts

Includes purchase price, type of deed the buyer will receive, condition of the premises, and any items that will be included Purchaser muist usually obtain a mortgage loan: Loan that is used to purchase property and is secured by that property Implied Warranty of habitability: Guaranty by the seller of a new house that the house is fit for human habitation - House is in reasonable working order and is of reasonably sound condition - Also a guaranty by a landlord that rented residential premises are habitable Seller has a duty to disclose any known defect that materially affects the value of the property - Failure to do so gives buyer right to rescind

Nonpossessory interest

Interest in land involving the right to use the land but NOT the right to possess it or take from it Easement: A nonpossessory right, established by express or implied agreement, to make limited use of another's property without removing anything from the property Ex: Right to walk or drive across another's property - Excel Energy can walk across your lawn to access a power box License: The revocable right to enter onto another person's land without obtaining any permanent interest in the land - Personal privilege that arises from the consent of the owner of the land and can be revoked by the owner Ex: Hunters who access land to hunt Ex: Concert goers who enter an arena attend a concert

Ownership of land is a legal construct

It is an abstract concept Legal system therefore recognizes certain rights and duties that constitute ownership interests in real property

In mid-July, the Jeffersons sell their home to the Trainers. The Jeffersons know that their oil furnace doesn't work. The:

Jeffersons have a duty to disclose the problem.

Property

Legally protected rights and interests in anything with an ascertainable value that is subject to ownership Two types of property: 1. Personal Property: Property that is moveable (cars, computers, cloths, and artwork, etc.) 2. Real Property (real estate): Property that is immovable, including: - Land and the buildings, plants, and tree that are on it - Subsurface and airspace rights - Personal property that has become permanently attached

Teagen owns a small cottage in which her elderly aunt, Katie, lives. Teagen wants to ensure that Katie can live in the cottage for the remainder of her life, but when Katie dies, title to the property will return to Teagen. Teagen can accomplish this objective by granting Katie a:

Life estate

Lifes Estate

Ownership interest in land that lasts only for the duration of the life of some specified individual Created by a conveyance or transfer of really property which states: "to Arnold for his life" Conveyance: The transfer of title to real property from one person to another by deed or other document Life tenant has the right to use the land until he/she dies; the ownership interest does not pass to the person's heirs Life tenant CANNOT commit any waste (injury to the land) because he/she has a duty to maintain the value of the property during his/her tendency Ex: Hugh Hefner and the Playboy Mansion

Jack and Jill have a tenancy in common in an apartment building. After ten years of ownership, Jill dies unexpectedly. On Jill's death, Jill's interest in the property will:

Pass to Jill's heirs

Will or inheritance

Property that is transferred upon an owner's death is passed either by will or by state inheritance laws If owner dies with a will the land passes in accordance with terms of the will If owner dies without a will the land passes according to state inheritance statues which specify how and to whom property passes

Ownership in real property can be transferred (conveyed) by:

Sale (as specified in a real estate sales contract and in deeds) Will or inheritance Eminent domain

Real property: Land

Soil on the surface of the earth Natural or artificial structures attached to it All the waters contained on or under the surface Much of the airspace above it

Deed: Recording Statutes

Statutes that allow deeds, mortgages, and other real property transactions to be recorded so as to provide notice to future purchasers or creditors of an existing claim on the property Deeds are recorded in county in which the property is located Provides a library for buyers to review to see whether there have been earlier transactions creating interests or rights in specific parcels of real property

Eminent Domain

The power of a government to take land from private citizens for public use as long as the government provides such citizens with just compensation Also refereed to as the condemnation power of the government to take land for public use Ex: New or expanded highways

Assignment of lease

Transfer of tenant's entire interest in the leased property to a third party - Landlords consent is typically required - Assignment typically does not release the original tenant from the obligation to pay rent should the assignee default Sublease: Transfer of all or part of the leased premises by tenant to a third party for a period of time shorter than the lease term - Landlord's consent is typically required - Sublease typically does not release the original tenant from the obligation to pay rent should the sublessee default

Deeds

Written instrument (document) which conveys real property from one person to another person - Unline a contract, a deed does not have to be supported by legally sufficient consideration To be valid, a deed must include the following: Name of the buyer (grantee) and the seller (grantor) Words indicating an intent to convey the property Ex: "I hereby bargain, sell, grant, or give" A legally sufficient description of the land Signature of grantor (and usually that of grantor's spouse) Delivery of the deed

Marcus and Remy are owners of a condominium complex in a joint tenancy. Remy wants to leave the joint tenancy and sell his property right to Yolanda. When Remy sells his property right to Yolanda,

Yolanda's ownership becomes a tenancy in common with Marcus

Amy and Reese are selling their home to Mitch and Kris. They sign a deed that affords the strongest covenants and provides the most protection to Mitch and Kris. This is called:

a warranty deed

Abigail is the owner of a tract of land, but Umberto owns the mineral and excavation rights to that land. Umberto commences excavation to access the valuable minerals. While digging, he causes the surface of the land to collapse. Umberto is:

absolutely liable for any collapse.

Sam lives in a subdivision that has deed restrictions preventing drilling for oil and gas. This type of limitation is known as:

an encumbrance.

Mary owns land in fee simple. Mary would like to lease the property to Jack, who wants to farm the land. Because Mary holds the property in fee simple, she:

can lease, sell, or give the land away as she wishes.

Steve leases an apartment from Ashley. According to the lease, Ashley is required to keep all plumbing in working order. After Steve has lived in the apartment for four months, the toilet breaks. Ashley refuses to fix it, making it virtually impossible for Steve to continue to live there. The result of Ashley's inaction is that:

she has constructively evicted Steve.

Brad owns a hair salon that he is selling. In the salon are various items, including lobby furniture, barber chairs, wall mirrors firmly attached to the walls in front of each barber chair, razors, scissors, and handheld mirrors. When he sells the hair salon, the following are most likely to be considered fixtures:

the barber chairs and wall mirrors.

Steven and Andrea are married and live in San Diego, California. Shortly after the marriage, they purchase a home together. Two years later, Andrea inherits ranchland from her deceased father. In terms of ownership:

the home is considered to be community property, but the ranchland is not

Sara agrees to sell Butch a parcel of land. The land has a home, fifty acres of crops, and ninety acres of grassland. When Sara sells the parcel to Butch:

the sale includes the crops, unless the contract says otherwise