Section 3: Ownership Rights and Limitations in Texas

Which of these types of fee simple estate gives the original owner of the property the right to reclaim possession of the property by taking action?

Fee simple subject to a condition subsequent

Easement in gross

A right to use the land

What type of estate is a Texas homestead?

Legal life estate

The right to access non-navigable rivers, streams, and other flowing bodies of water adjacent to a property is called ______ rights.

Riparian

Fee simple

The property owner is granted all rights to the property by law.

Investigation

The property's history reveals underground storage tanks stored chemicals.

Easement by necessity

The right to access a road in order to get to one's property

Ad valorem tax

Unpaid real estate property taxes

Identify the correct meaning of condemnation.

Implies that the government is taking ownership of the property and that compensation will be given to the owner.

Which statement about lead-related health problems is true?

Lead may cause behavioral problems, learning disabilities, seizures, and, in extreme cases, death.

The right to access navigable ponds, lakes, and other stationary bodies of water is called _________ rights.

Littoral

Which phase of the environmental site assessment involves addressing any on-going or potential issues?

Management

A Texas homeowner may be forced to sell a homestead property for failure to pay their ______.

Mortgage

Superfund Amendments and Reauthorization Act or SARA

Removes clean-up responsibilities from a property owner if contamination occurred prior to their ownership and due diligence was performed

Deed restrictions imposed by a developer who wants to maintain specific standards in a subdivision under development are often called _______.

Restrictive covenants

What type of interest involves the property ownership going back to the original owner at the end of the life estate?

Reversionary interest

This phase of an environmental site assessment is only conducted when necessary. If a problem is found during the investigation phase, this phase is put into action next.

Testing

Which of the following are substances found in air fresheners, cleansers, paint, and building materials that can make indoor air quality toxic at high levels?

VOCs

Aside from paint, lead most commonly appears in _______.

Water pipers

Life Estate Pur Autre Vie

When an estate is measured by a person's life who isn't the owner of the life estate, it's a life estate pur autre vie. Owen gives Verdun Manor to Kathy for the life of Bernie. This means that Kathy has a life estate in Verdun Manor for the life of Bernie. When Bernie dies, no matter what Kathy is doing, Verdun Manor goes back to Owen.

A Texas homestead is protected against general creditors, but there are some exceptions to this rule. Can you identify these exceptions?

-Pre existing -Mechanic's lien

Reversionary interest

-Property ownership will go back to the original owner at end of the life estate. -Kathy transfers land to Owen for life, and Owen has the use of the land for the rest of his life. When Owen dies, the land will go back to Kathy.

Is a Lead Disclosure Required?

-Single-family home built in 1913 -Duplex built in 1967

Types of Government Power

-Taxation -Eminent Domain -Escheat -Police

Easements may be terminated in several ways:

-The easement owner may release the easement if it is no longer needed -A dominant and servient land could be merged into one parcel -The easement owner could abandon the easement -The necessity of an easement by necessity could be terminated (e.g., by building a new access road for the dominant tenement) -An easement with a deadline could expire

Easement Termination

-The easement owner releases the easement, as it is no longer needed. -The dominant and servient land are merged into one. -The easement owner abandons the easement. -The easement is no longer needed (e.g. a new access road is built that the dominant tenement can use). -The easement deadline expires.

In order for a homestead to be created in Texas, the homeowner must meet which of the following requirements?

-The must live in the home as their primary residence. -They must own or lease the home.

Actions Against VOCs

-Use natural scents -Choose building materials made of natural fibers -Use no- or low-VOC paint -Clean with "green" products -Store VOC items outside the home -Open a window

Navigable Waterways

-Waterways that are considered public easements. -Waterways that are public and aren't owned by a private land owner.

Non-navigable waterways

-Waterways where a private owner owns the land under the water to the center of the waterway.

What's the maximum size for a rural homestead family in Texas?

200 acres

Covenant

A deed restriction is a private agreement that impacts the use of the land. A covenant is a type of deed restriction.

Life estate

A freehold estate where ownership is limited to the duration of some person's lifetime, either the person holding the life estate—the life tenant—or some other named person. The owner can profit from the property, possess it, or lease it, but those rights end when the life estate ends. A life estate is not inheritable.

Which of the following statements correctly identifies the rule of capture?

A landowner has the right to use or sell all of the water that can be drilled and taken from beneath the land.

What happens if you don't pay your taxes?

A lien is placed on the property.

Voluntary

Created by the property owner or with the property owner's consent

Involuntary

Created without the property owner's consent

What makes urea formaldehyde foam insulation a health hazard?

It contains formaldehyde

What must sellers provide prospective buyers of homes built prior to 1978, in addition to the appropriate disclosure form?

EPA lead safety pamphlet

Without this easement—usually involving access to a road—the owner requiring the right of passage would be landlocked.

Easement by necessity

Eloise is interested in buying a bungalow on the outskirts of the city. Her agent is reviewing the property details and informs her that there are several easements on the property. In particular, the gas company has a right of way because the natural gas line for the neighborhood runs through the back of the lot. What type of easement would this be?

Easement in gross

The state takes part of your land for a street that will lead to a new park and pays you for it. Is this an example of a police power or eminent domain?

Eminent domain

Which government power allows it to convey title to a property involuntarily, while paying the property owner?

Eminent domain

Which written statement will be used to consider ways to minimize a project's negative impact on the environment?

Environmental impact statement

Mechanic's

Failure to pay for work performed on the property

Joe gave land to a school, but still wanted to have some control over its use, so a deed was prepared that gave the school title as long as the land is used for educational purposes. What type of interest does the school have?

Fee simple determinable

The Nicholsons just bought a mid-century modern home that will require lead paint abatement. Tom and Genna, their three-year-old daughter Grace, and Genna's mom Pat are waiting to move into the split level until the abatement is complete. Who would be at the most risk of adverse lead effects if they moved in before the abatement was finished?

Grace

Comprehensive Environmental Response, Compensation and Liability Act or CERCLA

Identifies sites that have hazardous substances and require clean-up by the responsible party

Examples of Covenant

-Goat -Satellite -Fence -Truck

Finding UFFI (urea-formaldehyde foam insulation

-Insulation

Let's discuss three types of encumbrances:

-Liens -Restrictions -Easements

Lien Types

-Mortgage -Voluntary -Ad valorem tax -Mechanic's -Involuntary

Reservation

-Identifies an interest that the seller is going to retain -Used to show that the current owner is going to keep an interest in the property

Exception

-Informs the buyer that there is a deficiency in the seller's title -Used to show that a previous owner holds a mineral interest

Which form is used when a seller wants to reserve mineral rights?

Addendum for Reservation of Oil, Gas and Other Minerals

Your buyers love the 1891 Victorian they have under contract, but they want to get both the water and the paint tested as soon as possible. What are they testing for in both water and paint?

Lead

Which Type of Fee Simple Estate?

Dan gives his land to the church, as long as it's used for religious purposes. This makes it a fee simple determinable estate. The church now has the full bundle of rights that any property owner has. However, if the church decides to use the property for non-religious purposes, Dan can reclaim the property. The deed is automatically returned to Dan.

Your client ends up purchasing a home that was built before 1978. In which five of these items might they find the presence of lead?

-Paint -Pipes -Soil -Drinking water -Dust

Covenants and Deed Restrictions

-Covenants and deed restrictions may be included in the property deed itself. -Covenants and other deed restrictions are often placed on the land by the owner when the property is sold. -Deed restrictions are also known as restrictive covenants.

In what items are you likely to find VOCs?

-Air fresheners -Cleaner -Paint -Building materials

Legal Life Estate

-An involuntary life estate is created automatically by law when certain events occur. -A homestead estate exists for a family as long as the family lives in the house.

Identify which four statements are true about groundwater in Texas.

-Aquifers and underground springs are sources of groundwater. -A land owner has the right to use or sell all of the water that can be drilled or captured from beneath their land. -A legal action can be taken if someone interferes with the owner's groundwater rights. -Groundwater conservation districts help manage groundwater over-pumping.

Actions Against UFFI

-Buy a home monitoring kit to test formaldehyde levels -Hire an inspector to check formaldehyde levels -Increase ventilation and bring more outside air into the home -Replace all foam insulation used prior to 1985

Remainder interest

-Chuck has the right to own and possess Leroy's property after Leroy's cousin, named in a life estate, dies. -Bob gives a life estate to Candy, who has two children. The children are named as fee simple owners should Candy die.

There are two ways to specify ownership of minerals in Texas in the sales contract. Can you identify them?

-Exception -Reservation

Easements

An easement is a right acquired by one party to use the land of another party for a special purpose. Easements are often part of a written agreement between the parties.

Subject to a condition

An estate that doesn't end automatically when the stated event occurs. If the event's violated, the original owner has to reclaim ownership.

Fee simple determinable

An estate will end automatically when a stated event or condition occurs, and the property will go back to the original owner.

Alluvion

Cheryl marvels at this new deposit of land near the river, which is the result of accretion.

Some groups of people are more vulnerable to lead poisoning and its effects than others. Of those listed, who is most vulnerable?

Children

The phases of an environmental assessment include investigation, testing, ______ , and management.

Cleanup

When the government actually takes someone's property, it's called

Condemnation

Which of the following properties requires a lead disclosure?

Duplex built in 1959

Which of the following is true about volatile organic compounds?

Paint, air fresheners, and cleaners are primary sources

Management

Periodic monitoring is done to detect any future problems.

Government agencies usually become involved during which phase of an environmental assessment?

Phase III: Clean up

A condominium unit is on fire and the fire department must destroy the unit next door to put out the fire. Doing so will save the rest of the building. Is this an example of a police power or eminent domain?

Police Power

Which government power is used to do what's right for the public good where the owner may or may not be compensated?

Police power

In Texas, water rights depend on whether the water is groundwater or surface water. If you have groundwater on your property, who owns it?

Property owner

Deirdre lost her job, and the bank foreclosed on her condo. Which of the following of her outstanding debts will the bank pay first?

Property taxes

Mortgage

Secures a lender's interest in the property

Ownership of minerals is unique because minerals can be detached from surface ownership. This leads to what type of ownership?

Separated ownership

Testing

Soil samples are taken and sent to a lab.

How can volatile organic compounds be reduced in the home?

Stick to natural scents and fibers.

A Story of Two Families

The Rudolphs and the McKinleys are neighbors and have been for years. The neighbors' properties are situated back to back, separated by utility lines. The Rudolphs live on the side of the property that has access to the main street, Easement Street, while the McKinleys live on the side of the property that has access to the river, aptly named Encumbrance River. There is a path that allows the Rudolphs access across the McKinley property to the river. This path is an example of an easement appurtenant, which is the permanent right to use another's land for the benefit of a neighbor. The utility lines spanning the lot line between the McKinleys and the Rudolphs are an easement in gross, which is a right to use the land. The McKinleys use the Rudolphs' driveway to get to Easement Street. The use of the driveway is an easement by necessity, which usually involves access to a road. Without such an easement, the McKinleys would have no way to get to the main road and into town. Although good neighbors and friends, the Rudolphs and the McKinleys documented their easement agreements in writing, just so that everyone knows the "rules."

Clean-up

The developer hires a private company to remove contamination.

Easement appurtenant

The permanent right to use another's land for the benefit of a neighbor

Easement by prescription

The permanent right to use another's property

Fee simple defeasible

The property holder owns the property subject to a condition. If breached, the property will go back to the original owner.

Identify which description best fits that of a rural homestead in Texas.

The property is located in the country and is limited to 200 acres for a family.

Identify which description best fits that of an urban homestead in Texas.

The property is located within the limits of a municipality and does not exceed 10 acres in size.

What is the power of escheat?

The property returns to the state when an individual dies without a will and without heirs.

Riparian Water Rights

The small creek flowing along the edge or your back yard is the prime setting for friendly competition to see who can catch the most fish.

Reliction

The water has receded near Trevor's beachfront cottage, uncovering new land.

Erosion

The water has worn away the land near Alycea's seaside cottage.

Littoral Water Rights

There's no better way to spend a morning than sitting on the edge of your pier throwing a ball into the lake for your dog to fetch.

Accretion

This process has carried rock, sand, and soil, and has caused land build-up on Kimberly's land.

In Texas, are minerals considered part of the real estate?

Yes

Negotiating Mineral Rights

You're working with a client who's selling property and there are valuable minerals on the land. You should let your client know that in some cases mineral rights can be detached from the sale of the property. In the sales contract, your client includes a/an reservation to let the buyer know they will retain an interest in the minerals. Therefore the Addendum for Reservation of Oil, Gas and Other Minerals would need to be completed. Keep in mind that it may be wise to counsel your client to obtain legal advice when separating rights from their property.