Chapter 8

A homeowner removes a wooden picket fence and replaces it with a vinyl fence. Once removed, the wooden fence is considered personal property. true

The picket fence, when removed, became personal property by act of severance.

One of the ownership rights included in the bundle of legal rights is the right of disposition. true

The right of disposition is the right to sell or otherwise dispose of the property.

An item of personal property that is attached to real property and is owned by a tenant and that the tenant uses in a business

Trade Fixture

The most comprehensive freehold estate that is inheritable is fee simple.

.A tenancy at sufferance is created when a tenant holds over after the lease period has ended.

A gasoline pump at a filling station is an example of a trade fixture. true

A trade fixture is an article that is attached by a commercial tenant as a necessary part of the tenant's trade or business and is personal property.

Was the item in question designed for the normal use of the specific property?

Adaptation of the item

Control. The right to uninterrupted use and control of the property consistent with local laws (for example, zoning).

Control

Condominium documents are a set of written instruments describing the condominium and the association. The four condominium documents in the following list are required to be given to buyers of residential units sold by the developer and to buyers of resale condominium units (see Condominium Disclosures).

Declaration Articles of incorporation Bylaws Frequently asked questions and answer sheets

Exam: Which term describes the process of land buildup from water-borne rock, sand, and soil? Accretion

Exam: Title to real property does NOT convey in which type of estate? Estate for years

are associated with land abutting tidal bodies of water, such as an ocean or a sea. Littoral owners own land that abuts water that is nonflowing, including ponds and lakes. Littoral rights include ocean-front property and gulf-front property. The littoral owner's rights include ownership of the land adjacent to the water up to the average high-water mark.

Littoral rights

Land and anything permanently attached to the land.

Real property

Action that real property may become personal property

Severance

Time-share units are divided into time segments of ownership, usually 12 months. False, 52 weeks

The frequently asked questions (FAQ) and answers sheet MUST be given only to buyers of resale units sold by a prior owner. False. The FAQ must be given to buyers of residential units sold by the developer in addition to buyers of resale condominium units.

A freehold estate is an ownership interest for an indefinite period. That interest can be inherited (fee simple estate) or can be measured by the lifetime of an individual (life estate).

A fee simple estate is the largest bundle of legal rights. Fee, fee simple, and fee simple absolute are all used to describe the estate. All three terms identify an ownership interest with complete power to use, to dispose of, and to allow the property to descend to heirs. It is the highest type of real property interest recognized by law. Most title to property is held in fee.

A joint tenancy features right of survivorship. true

A joint tenancy is characterized by the right of survivorship. Right of survivorship means that when one co-owner dies, the co-owner's share goes to the surviving co-owner(s) and not to the deceased tenant's heirs.

A cooperative, cooperative association, or co-op is a multiunit building that is owned by a corporation. The corporation holds title to the land and improvements. The unit owners purchase shares of stock in the corporation. Ownership of the stock entitles the purchaser to a proprietary lease and the right to occupy the unit.

Cooperative, Condominium, and Time-Share Rescission Periods 3 business days- Resale residential cooperative apartments and condominium units 10 calendar days-Time-shares sold by developer or resale 15 calendar days-Residential cooperative apartments and condominium units sold by developer

Exam: A developer who builds and sells new condominium units must allow buyers the opportunity to cancel the purchase agreement within how many days of signing the contract? 15 days

Exam: Property held as a tenancy by the entireties becomes which type of estate in the event of divorce? Tenancy In Common

Bylaws. The bylaws describe the rules and regulations of the association. It provides for the administration of the association, including procedures for calling meetings, determining voting requirements, and so forth. Each purchaser, by accepting title to a unit, automatically becomes an association member and is bound by the association rules and regulations.

Frequently asked questions and answers sheet (FAQ). The FAQ informs prospective purchasers about restrictions on the leasing of a unit, information concerning assessments, and whether and in what amount the unit owners or the association are obligated to pay rent or land use fees for recreational facilities.

If the title will revert (return) to the original grantor (previous owner), an estate in reversion (reversion estate) is created. In Example 1, Lucille conveyed a life estate to Andrew. Because title to the property reverts to Lucille (the original grantor) upon Andrew's death, Lucille's interest in the home is an estate in reversion.

If the title will be conveyed to a third party, called a remainderman, the remainderman owns a remainder estate while the life estate exists. The deed that established the life estate also designates the remainderman. When the life estate ends, the remainderman receives a fee simple estate. If there is only one remainderman, the grantee receives a fee simple estate in severalty. Life estates can also be created by law. These life estates are called legal life estates. For example, in Florida, if a homesteaded property is titled in one spouse's name only, by operation of law, the surviving spouse receives a life estate to the homesteaded property and the children receive a remainder estate.

An owner's rights to use the physical components of surface, subsurface, and air are called surface rights, subsurface rights, and air rights

Physical components of land

The right of exclusion recognizes that an owner is considered to have the right to control entry onto the owner's land without interference and to collect damages for certain forms of trespass. true

The right of exclusion is the right to keep others from trespassing by entering or using the property without permission.

Time-Share Disclosures The Commission requires licensees who advertise, list, or sell time-share periods to provide disclosures in the listing contract, advertisements, and sale contracts.

Time-Share Resale Listing Agreement Disclosures FREC rules require that all agreements engaging the services of a broker in connection with the resale of a time-share period must contain the following disclosure, be included in conspicuous type, and be located immediately above the space in the listing agreement reserved for the signature of the owner of the time-share period:

Time-sharing evolved out of the vacation condominium concept. The property is first organized as a condominium. Each unit is divided into time intervals of ownership, usually 52 weeks. A deed or some evidence of share ownership or right of occupancy is prepared for each time interval.

Time-share ownership involves an undivided interest in a living unit according to the number of weeks purchased. For example, if one week is purchased, the buyer owns a 1/52 interest in the unit. Size, location, amenities, and time of year all affect the purchase price of the time-share unit.

To Remember: Four Unities of a Joint Tenancy P Possession Joint tenants have the same rights of undivided possession I Interest Joint tenants have equal ownership interest T Title Joint tenants acquire title on the same instrument (deed) T Time Joint tenants acquire their interests in the property at the same time

Today, a true joint tenancy cannot be created unless specific wording in the deed conveying the property provides for survivorship. Under present law, a deed conveying an estate in joint tenancy to ensure survivorship must include wording similar to "as joint tenants with right of survivorship and not as tenants in common." This continues that feature of joint tenancy that prevents disposition of the property by will or descent to heirs. As joint tenants die, their shares are divided among the surviving tenants until only one owner is left. The sole survivor then has a fee simple estate in severalty. For example, Bob, Bill, and Betty own 10 acres as joint tenants with right of survivorship. If Bob dies, Bill and Betty will remain as joint tenants, with each having a 50% share of ownership. If Bill dies later, Betty is the sole surviving joint tenant. At the time of Bill's death, Betty owns the property in severalty.

A life estate that provides for the property to return to the grantor is an estate in reversion.

A tenancy at will is a lease agreement that that has no specific end date.

A life estate is an estate that is limited in duration to the life of its owner or the life of some other designated person.

A tenancy for years is also called an estate for years.

Accretion The process of land buildup from water-borne rock, sand, and soil

Alluvion New deposits of land as a result of accretion; alluvion deposits commonly occurring at the mouth of large rivers (The landowner is entitled to all new soil deposits.)

Declaration. The declaration of condominium is an important condominium document because it is the document that creates the condominium. Creation of the condominium occurs when the declaration is recorded in the official records of the county where the property is located.

Articles of incorporation. The operation of a condominium is carried out through its association. The articles of incorporation create the corporate entity responsible for operating the condominium.

How chattel can become real property

Attachment

Place a check mark to indicate which disclosures are required to be given to buyers of new residential condominiums and/or resales. Most recent year-end financial: resale Bylaws: both; new residential condominiums or resales Governance form: resales Rules of the association: resales Estimated operating budget: new residential condominiums Articles of incorporation: both; new residential condominiums or resales Declaration: both; new residential condominiums or resales FAQ: both; new residential condominiums or resales Prospectus: new residential condominiums

Checks

Real property ownership rights are called a bundle of legal rights.

D Disposition E Enjoyment E Exclusion P Possession C Control

Disposition. The right to sell, mortgage, dedicate, give away, or otherwise dispose of all or a portion of the property.

Enjoyment. The right to enjoy and use the property without interference (the legal term is quiet enjoyment).

Exam: The gradual loss of land associated with moving water and/or wind is called Erosion

Exam: A man owns a condominium for his lifetime. Upon his death, the property will convey to his sister. What type of estate does the sister hold during the man's lifetime? Remainder Estate

Exam: Which action can result in the foreclosure of a homesteaded property? Delinquent property taxes on the homestead property

Exam: A tenant, after rightfully being in possession of a rented premises, without the consent of the owner, continues possession. This situation creates: A tenancy at sufferance

SOP All listing agreements in connection with the resale of a time-share period must contain a disclosure stating that there are no guarantees regarding price or when the time-share unit may sell.

Exam: How many days' notice must be given to terminate a month-to-month tenancy? 15 days

Exam: A proprietary lease is associated with a Cooperative

Exam: Three individuals want to develop and sell a parcel of land. Each of the individuals has a spouse and children. The three individuals want to take title to the property in such a way that an owner's family would inherit part of the property if that property owner died. How should the individuals take title to the land? Tenant in common

An item of personal property that is attached to the real property with the intention of the item becoming permanent.

Fixture

Personal property: moveable items not attached to real property; items severed from real property

Fixture: an item of personal property converted to real property by attaching it to the real property

Estates and Tenancies An estate refers to the degree, quantity, nature, and extent of interest (ownership rights) a person can have in real property. The terms estate and tenancy are to be used interchangeably. Estates are divided into the following two general groups:

Freehold estates, which are for an indefinite length (of unknown duration) Leasehold estates (also called nonfreehold estates), which are for a fixed term (known duration) (see Estates in Real Property)

If at the end of the life estate, title is conveyed back to the original grantor, the remainder interest is an estate in reversion. true

If the title will revert to the original grantor, an estate in reversion is created.

What was indicated by verbal communication or statements in the sale contract?

Intent of the parties

Time-Share Act Buyers of time-share units in Florida are protected by the Condominium Act and by the Florida Vacation Plan and Timesharing Act. Florida Statute Chapter 721 applies to time-share plans in Florida consisting of more than seven time-share periods over a span of at least three years.

Licensure Requirements and Exemptions A real estate license is required to sell time-share plans unless specifically exempted. Owner-developers who develop and sell time-share units may hire unlicensed sales personnel, provided the salespeople are salaried employees who are not paid a commission and who do not receive compensation on a transaction basis, such as bonuses based on sales quotas. Owners of time-share periods who own the time-share for their own use and occupancy are exempt from licensure.

Will removing the item result in damage to the real property?

Method of attachment

In addition to the four condominium documents previously discussed, unit owners of resale condominium units must give buyers three additional disclosures (see Condominium Disclosures).

Most recent year-end financial report Rules of the association Governance form. The governance form was developed by the Division of Florida Condominiums, Timeshares, and Mobile Homes to educate prospective purchasers on the rights and responsibilities of the condominium board and unit owners. The form was developed for use by condominium unit owners to give prospective buyers.

Freehold estates are estates of ownership. Fee simple (absolute) is the most comprehensive estate and it is inheritable. Life estate is measured by a natural life span ("for the life of").Estate in reversion occurs when property returns to the grantor.Remainder estate occurs when property goes to a third party.

Nonfreehold estates (leasehold) are estates of possession. Estate for yearsis a written lease agreement with a specific starting and ending date. Tenancy at will is either an oral agreement or one that has no specific ending date. Tenancy at sufferance occurs when the lease period has ended and the tenant is a holdover.

Moveable items not attached to real property

Personal property

Personal property. Homestead protections include $1,000 of value of personal property.

Personal property

In addition to the four condominium documents listed previously, there are two additional disclosures required to be given to prospective buyers when purchasing residential units from a developer (see Condominium Disclosures):

Prospectus. The developer is required to provide a prospectus (offering circular) to purchasers if the condominium consists of more than 20 residential units. The prospectus summarizes some of the major points detailed in the condominium documents. Estimated operating budget. The estimated operating budget provides detailed estimates of various common expenses that are to be shared by the unit owners.

A fixture is an item that was originally personal property that has been permanently attached to real estate in such a way that it is now legally part of the real property. true

True

The right of possession allows an owner to occupy the premises in privacy. true

True The right of possession is the right to occupy the property.

_____________refers to the surface of the earth and to everything attached to it by nature, such as trees and lakes. Land also includes products of nature beneath the surface, such as oil and limestone. Technically, land extends downward to the center of the earth and upward into the air to infinity.

land

_________________refers to the land and all human-made improvements permanently attached to the land. Improvements are artificial (man-made) things attached to land, such as homes, factories, fences, streets, sewers, and other additions.

real estate

Tenants in common may hold different percentages of ownership in the property. However, each tenant holds an undivided interest in the property, meaning that tenants in common own an interest in the entire property rather than just a particular part of the property.

true

The two types of water rights are riparian rights and littoral rights. true

. Riparian rights are associated with land abutting a flowing waterway, such as the banks of a river or stream. Littoral rights are associated with land abutting tidal bodies of water such as an ocean, sea, or lake.

Homeowners (including single persons) in Florida may homestead their permanent (principal) residence. The Florida Constitution grants certain protections and benefits to the homestead:

Protection of the family Protection of the homestead Tax exemption Size of homestead Personal property

______________________includes all real estate plus the legal bundle of rights inherent in the ownership of real estate (the bundle of rights is explained in detail under "Basic Property Rights" later in this unit). The terms real property and real estate are often used interchangeably (see the definition of real property that follows). However, some references reserve the term real property to include the concept of a bundle of rights associated with ownership. Real property, therefore, includes not only the real estate (land plus improvements) but also the legal interests, rights, and privileges associated with the ownership of real estate.

Real property

Residential tenants are typically required to leave any item that the tenant has attached to the walls or the floors, whereas commercial tenants may be able to remove items that are attached to the walls and floors if the article was a necessary part of the tenants trade or business.

Relationship of the parties

A joint tenant who wants to sell her share of a property may do so. However, the person who buys that share cannot be a joint tenant with the other original owners, but instead will be a tenant in common without the right to receive any property on the death of one of the original joint tenants. The tenant in common's share can be disposed of by will, descent, or other arrangement. For example, John, Jim, Jill, and Jane own an office building as joint tenants with right of survivorship. Jim sells his ownership interest (25%) to Sally. Sally is a tenant in common, while John, Jill, and Jane remain joint tenants. If John should die, his interest will be divided between Jill and Jane. If Sally should die, her interest will go to her heirs or according to her will.

Tenancy by the Entireties A tenancy by the entireties is basically a joint tenancy between a married couple. Any type of property (residential, commercial, industrial, and so forth) purchased by a married couple together, will be held as a tenancy by the entireties. The deed or other instrument of conveyance does not have to state expressly that a tenancy by the entireties exists. If the parties are truly married to each other, the estate is implied. While not mandatory, the deed should reflect a tenancy by the entireties to serve notice to others that such an estate exists, such as John P. Smith and Sally R. Smith, a married couple.

Developers of condominium projects of more than 20 new residential units must give prospective purchasers a copy of the prospectus. True; Developers of more than 20 new residential condominium units must prepare a prospectus. A copy of the prospectus must be given to prospective purchasers. The prospectus summarizes the major points detailed in the condominium documents.

The purchaser of a resale time share period has a 10-calendar-day right to cancel the purchase agreement. True: Purchasers of a time share period have a 10-calendar-day right to cancel time share periods sold by a developer, as well as resales.

Intent of the parties: As in most points of law, intent of the party placing an article on or in real property is of primary importance. Statements made by an owner to witnesses may indicate the intent to make an item a fixture. For example, including a washer and dryer in a sale contract as part of the real property would remove any doubt about the owner's intention. If a dispute arises between a buyer and a seller or an owner and a tenant, the courts may be required to determine the original intent of the parties.

To Remember: Legal Test for Fixtures I Intent of the parties R Relationship or agreement of the parties M Method or degree of attachment A Adaptation of the item

A homesteaded property is protected from forced sale for unpaid homeowners association fees. false

Homestead protection does not prevent foreclosure for nonpayment of homeowners association fees.

Relationship or agreement of the parties In this test, the courts seek to determine the exact nature of the relationship of the parties. Is it buyer and seller or landlord and tenant? Ordinarily, residential tenants are required to leave any item they have attached to the landlord's real property. However, if a building is leased as a retail store and the tenant has attached display racks to the walls, the courts would generally rule that the display racks are trade fixtures that may be removed by the tenant. A trade fixture is an item installed by a commercial tenant and used in the tenant's trade or business. Trade fixtures are legally considered personal property that are removable by the tenant, and the tenant would typically be responsible for necessary repairs associated with removal. For example, hydraulic car lifts installed by an auto repair shop are trade fixtures

Method or degree of attachment The manner in which an article is attached to real property generally indicates whether it is a fixture or personal property. Normally, if removing the item would result in damage to real property, the article is classified as a fixture. A set of built-in storage cabinets in the utility room would usually be considered a fixture if removing it would damage the wall.

SOP The bundle of legal rights consists of the following: right of disposition, right of enjoyment, right of exclusion, right of possession, and the right of control.

SOP A freehold estate is an ownership interest for an indefinite period. Fee simple is the most comprehensive freehold estate, and it is inheritable. A life estate is also a freehold estate, but it is measured by an individual's natural life span.

SOP A tenancy at will is a lease agreement that has a beginning date but no fixed termination date.

SOP A tenancy at sufferance occurs when a tenant retains possession of the property beyond the ending date of a legal tenancy without the consent of the landlord (tenant holds over).

SOP A leasehold estate, or nonfreehold estate, is a tenant interest in real property measured in calendar time. The three types of leasehold estates are estate for years, tenancy at will, and tenancy at sufferance.

SOP An estate for years is a tenancy with a specific starting and ending date.

SOP Real property includes all real estate plus the bundle of rights.

SOP Physical components of land are surface rights, subsurface rights, and air rights.

SOP Land refers to the surface of the earth and everything attached to it by nature.

SOP Real estate refers to the land and improvements.

SOP Any tangible asset that is not real property is personal property (or chattel).

SOP The four tests regarding fixtures are (1) intent of the parties, (2) relationship or agreement of the parties, (3) method or degree of attachment, and (4) adaptation of the item.

SOP Tenants in common have an undivided interest in the entire property. This interest can be left in a will or passed to heirs if there is no will.

SOP The four unities of a joint tenancy are (1) possession, (2) interest, (3) title, and (4) time. Joint tenancies are characterized by right of survivorship (when one co-owner dies, the deceased's share goes to the surviving co-owner).

SOP To create a tenancy by the entireties, the co-owners must be married to each other at the time they take title. The share of a deceased spouse automatically transfers to the surviving spouse by right of survivorship.

SOP The primary Florida residence of a homeowner qualifies for certain benefits and protections. These benefits include protection of the family, protection of the homestead, and a tax exemption from the assessed value.

SOP Sole ownership and concurrent ownership are ways that people hold freehold estates. An estate in severalty is created when title to property is in one person's name (sole owner). Ownership by two or more persons at the same time is concurrent ownershi

SOP The three types of concurrent ownership are (1) tenancy in common, (2) joint tenancy, and (3) tenancy by the entireties.

SOP Developers of more than 20 residential condo units must give purchasers a copy of the prospectus.

SOP There is a three-business-day cooling off period to cancel a condominium contract for sale from a property owner. There is a 15-calendar-day notice to cancel a condominium contract for sale from a developer.

Tax exemption. Florida statute allows a tax exemption from assessed property value. The current homestead tax exemption is up to $50,000 for qualifying homesteads and is deducted from the assessed value when calculating taxable value (also see Unit 18).

Size of homestead. The size of homestead property is restricted to 160 acres of contiguous land and improvements outside a municipality (city) or up to ½ acre of contiguous land and improvements if the property is located within the city.

The form of time-share ownership is normally divided into two types of legal formats:

-Interval ownership:Interval ownership is a "deeded interest" time-share format that provides for fee simple ownership of each unit in specific time increments and allows the buyer to purchase a fractional interest in a unit. The owner has the right to sell, rent, will, or give away the fractional interest in the unit. -Right to use: The time-share purchaser receives the right to use the unit for a specified number of years, usually 20 to 40 years. At the end of the specified years, the usage rights revert to the developer-seller. The developer can increase or add fees and assessments, and sell the time-share to a third party. At the end of the specified years, the usage rights revert back to the developer-seller. Owners may lose their right to use if the developer goes bankrupt.

The broker may rely on information provided in writing by the managing entity of the time-share plan when making the required disclosures. The contract for purchase must also include the:

-form of time-share ownership being purchased and a legally sufficient description of the time-share period being purchased; -name and address of the managing entity of the time-share plan; -terms and conditions of the purchase and closing, including the obligations of the seller or the purchaser regarding closing costs and title insurance; and -existence of any mandatory exchange program membership included in the time-share plan.

A condominium consists of condominium units and common elements. Condominiums may look like apartment buildings, attached town houses, or freestanding houses; what makes the structures condominiums is how the developer organized the association. The Condominium Act provides that an association, usually a not-for-profit corporation, is responsible for operating the condominium. The condominium association is run by a board of directors, initially appointed by the developer, and subsequently turned over to elected directors.

A condo purchaser owns an individual unit in fee simple. The deed to the unit may be held by one or more persons in any type of estate or tenancy recognized by state law. The unit owner also owns an undivided fractional (proportionate) share of the common elements. Common elements are those portions of the condominium property that are not included in the units but are legally attached to each unit and are transferred with the unit when it is sold. A deed to a unit conveys the unit to the purchaser together with its proportionate ownership interest in the common elements. Property taxes are levied on individual units.

Trade fixture: Item of personal property attached to real property that is owned by a tenant and is used in a business; legally removable by tenant.

A fixture is an item that was originally personal property that has been permanently attached to real estate in such a way that it is now legally part of the real property. A bathtub, for example, was personal property in its container in a warehouse, but once permanently attached in a home, it became real property. Some items, such as drapes, ceiling fans, and chandeliers, are more difficult to classify. In those cases where contracting parties have not had the foresight to include such items in a real estate sale contract, the courts generally use the following set of legal tests to decide whether an item is a fixture.

Nonfreehold estates have a known duration and do not involve an ownership interest. Nonfreehold or less-than-freehold estates grant the right of quiet enjoyment (the right to use and possess but not own) real property. Nonfreehold estates are also called leasehold estates.

A leasehold estate (tenancy) is an interest in real property that a tenant possesses. Leasehold estates are measured in calendar time. Under a lease, the tenant possesses a leasehold estate and the landlord (property owner) possesses a reversion estate. At the end of the leasehold estate, the right of quiet enjoyment (use and possession) of the property reverts to the property owner. There are three types of leasehold estates: estate for years, tenancy at will, and tenancy at sufferance (see Estates in Real Property).

Florida statute calls this a tenancy without specific term. Tenancies at will may be written or oral agreements. All the duties and obligations of a landlord-tenant relationship exist in a tenancy at will, and notice of termination is required by either party. Notice for termination of tenancies at will is set in statute and is based on the time interval between rent payments: Week to week—7 days' notice Month to month—15 days' notice

A tenancy at sufferance occurs when a tenant stays in possession of the property beyond the ending date of a legal tenancy without the consent of the landlord. The tenant has no estate or title but only "naked" possession and is not entitled to notice to terminate. The payment and acceptance of rent alone must not be construed to be a renewal of the lease. However, if the tenant's holding over is continued with the written consent of the lessor, then the tenancy becomes a tenancy at will under Florida law.

An estate for years (or tenancy for years) is a tenancy with a specific starting and ending date. It exists for a designated period, which may be any length of time from less than a year to a period of many years (such as a 99-year lease). An estate for years is a leasehold estate created by a written lease agreement. An estate for years establishes an interest in real property for the tenant (right of quiet enjoyment and exclusion) but does not convey actual title (or ownership) or the right of disposition (also see "Basic Property Rights" earlier in this unit).

A tenancy at will is a lease agreement that has a beginning date but no fixed termination date, such as a week-to-week or a month-to-month agreement. For example, assume Harry does not intend to use his lake cabin for a while, so Harry allows his friend Bill to live in the cabin for $100 per week. A tenancy at will has been created because Bill has been given permission to use the cabin and a rental rate has been agreed upon, but no ending date was established.

Adaptation of the item: This test seeks to determine whether an item was designed for, or necessary to, the normal use of a specific property. If the item is adapted or custom built to fit the property, it will likely be considered a fixture even though it is movable. For example, hurricane shutters are considered fixtures because they are custom made to fit specific windows in a structure even though they are not on the windows at all times. The shutters are placed on the windows when a storm is approaching and removed when the danger has passed. Another example of a fixture is draperies that have been custom made using the same decorative pattern as the wallpaper. Legal tests should not be necessary if all personal property to be sold with the real estate is listed in the sale contract. To avoid conflicts and misunderstandings between buyers and sellers, listing and sale contracts should clearly specify which items are considered part of the real property in a transaction and list any personal property that is to be included in the sale.

Adaptation

Subsurface rights: These consist of an owner's rights to underground minerals, petroleum, natural gas, and so forth, often called mineral rights.

Air rights involve that space above a tract, extending up to a height established by law (e.g., building rights, easements, aerial navigation). Most real property transactions include all three physical components in the exchange of ownership rights. However, it is entirely possible for the seller to retain one or even two of the components if the buyer and the seller agree. For example, the MetLife Building in New York City was built by purchasing the air rights over Grand Central Terminal. The surface and subsurface components of that parcel continue to perform the same function as before construction of the MetLife Building. Another example of the separation of components of real estate occurred near Jay, Florida. Before the oil supply there was exhausted, owners often sold or leased the subsurface component, including oil rights, while retaining the surface and air rights.

Life estates are another type of freehold estate that can be created by the person who holds the fee simple title to real property. An estate in real property that is limited in duration to the life of its owner or the life of some other designated person is a life estate. During the time an owner enjoys a life estate, the owner must maintain the property and not permit waste (anything that reduces the value of property) to occur. The life estate owner also must pay the taxes and property insurance and keep current any mortgage(s) or lien(s) to preserve the property.

Example of life estate: Lucille has a fee simple estate in a home. She wants to provide for her brother, Andrew. Lucille executes a deed that transfers title to the home to Andrew for his lifetime. Lucille is the grantor who transfers a life estate to Andrew. The duration of the life estate is measured by Andrew's lifetime. The deed provides that upon Andrew's death, title will revert to Lucille (the original grantor). A conventional life estate can also be formed by a grantor who reserves a life estate for the grantor's own use and transfers the remainder interest to another person (the grantee).

SOP Purchasers of a unit in a cooperative buy shares of stock in a corporation. A proprietary lease entitles the purchaser to the right to occupy the unit.

SOP A condominium is real property consisting of condo units and common elements. A condominium is created by recording the declaration of condominium. The articles of incorporation create the corporate entity responsible for operating the condominium.

Exclusion. The right to keep others from trespassing by entering or using the property without permission.

Possession. The right to occupy the property in privacy. An owner acquires the right of possession of a property on the day the owner has legal title even though the owner may not have set foot on the land itself.

When title to property is held by one person, it creates an estate in severalty or sole ownership (to help you remember, think of this ownership interest as "severed" or cut away from any other ownership interest). Separate property is property that a spouse owns in the spouse's name only before marriage and property acquired by one spouse during the marriage by inheritance or gift.

Property acquired during marriage, except by inheritance or gift, is referred to as marital assets. For example, one spouse may purchase a property with her own savings and title the property in her name only. Unless the couple signed a prenuptial agreement, the property is legally a marital asset. If the couple later divorces the courts will divide marital property "equitably."

Protection of the family. If a married person dies and the family homestead was titled in that deceased person's name only (in severalty), by operation of law (even if a will states otherwise), the surviving spouse receives a legal life estate and the children (lineal descendants) receive a remainder estate. If there are no children, the surviving spouse receives a fee simple estate in the homestead. Signatures of both spouses are required on all contracts, mortgages, and deeds on homestead property, even if the homestead is titled in one spouse's name only. The purpose of the homestead law, therefore, is to protect the family and prevent the family from being displaced from the homestead.

Protection of the homestead. Homestead property is protected from forced sale to satisfy judgment liens for debts owing to personal loans, credit card debt, and so forth. Homestead protection does not prevent foreclosure for nonpayment of property taxes, special assessments, mortgages, homeowners association fees, condominium association fees, vendors' liens, or construction liens secured with the homesteaded property.

The two basic types of property are real property and personal property (see Real vs. Personal Property). Real property is basically land and improvements to the land. Property that is not real property is personal property (also called chattel). Personal property usually consists of items having a limited life that are easily movable from one place to another. Just as the term realty is used to denote real property, the term personalty is used to indicate personal property. It is important to distinguish between real property and personal property in a real estate transaction. All personal property included in the sale should be identified in the contract for sale, or the seller is entitled to remove the property.

Real estate or real property- land and anything permanently attached to it.

Erosion Gradual loss of land due to natural forces (A landowner may lose land through the natural process of erosion.)

Reliction Gradual receding of water, uncovering additional land (The new land usually belongs to the landowner of the area that was previously covered by water.)

Real Estate- refers not only to the surface of the earth but also to all improvements permanently attached to the land, such as homes, fences, and sewers.

Reliction is the gradual receding of water, which uncovers additional land. true

Right to cancel purchaser agreement The Florida Vacation Plan and Timesharing Act requires that purchasers be informed that they may cancel the contract within 10 calendar days of contract signing or receipt of the public offering statement, whichever is later (see Cooperative, Condominium, and Time-Share Rescission Periods). The 10-calendar-day rescission period applies to time-share periods sold by the developer as well as resales.

Resale residential cooperative apartments and condominium units: 3 days Time-shares sold by developer or resale: 10 days Residential cooperative apartments and condominium units sold by develope: 15 days

___________________________are associated with land abutting a flowing waterway, such as the banks of a river or stream. The property owner does not own the river or stream but has a right to use the water, such as for fishing and boating. The right is held in common with other riparian owners to make reasonable use of the waters that flow past, provided the use does not alter the flow of water or contaminate the water.

Riparian rights

Ownership of property by two or more persons at the same time is concurrent ownership. There are three types of estates (tenancies) with concurrent owners: tenancy in common, joint tenancy, and tenancy by the entireties (see Sole Ownership Versus Concurrent Ownership).

Tenancy in Common When two or more persons wish to share the ownership of a single property, they may choose to do so as tenants in common. It is the most frequently used form of co-ownership, except for husband-and-wife ownership. Tenants in common may acquire title on the same or different deeds, at the same or different times, and with equal or unequal shares of ownership. As tenants in common, each owns an "undivided interest" in the whole property. An undivided interest is interest in the entire property, rather than ownership of a particular part of the property. For example, Sally and Kathy own a house as tenants in common. Sally holds two-thirds interest in the entire property, and Kathy owns one-third interest in the entire property. When Sally and Kathy die, their interest in the property will descend to their heirs. On Sally's death, for example, her two-thirds interest in the property will descend to her legal heirs (or as instructed in her will).

There is no guarantee that your time-share period can be sold at any particular price or within any particular period of time. Any written advertising material used by a broker or sales associate in connection with the solicitation of a listing agreement for the resale of a time-share period must also contain the disclosure statement in conspicuous type. It is unlawful for a real estate licensee to collect an advance fee for the listing of a time-share unit.

The listing agreement must also disclose -fees, commissions, or other costs or compensation to be paid to the broker directly or indirectly; -term of the agreement, a statement regarding the ability to extend the term of the agreement, and a description of all related costs and conditions under which the agreement may be extended; -broker services under the agreement, the costs and obligations of each party regarding a resale purchase, and obligations regarding notification of the managing entity of the time-share plan and any exchange company; -whether the agreement grants exclusive rights to the broker to locate a purchaser, to whom and when any proceeds from the sale of the time-share period will be disbursed, whether any party may terminate the agreement and the conditions for termination, and the broker compensation due from any party upon termination of the agreement before closing of the resale; -whether the agreement allows the broker or other person to make use of the time-share period and a description of any such rights, including to whom any rents or profits generated from such use of the time-share period will be paid; and -the existence of any judgments or pending litigation against the broker resulting from or alleging a violation of Chapter 475, 498, 718, or 721, F.S., or resulting from alleging consumer fraud.

Lucille has a fee simple estate in a home. She wants to ensure that her brother Andrew will be able to continue to live in the home after her death. Lucille executes a deed that transfers title to the home upon her death to Andrew. Lucille is the grantor who reserves a life estate in the home for her lifetime and transfers the remainder interest to Andrew. The duration of the life estate is measured by Lucille's lifetime.

When a life estate is formed, two distinct ownership interests emerge from the original fee simple estate: the life estate and a remainder interest. Because these two parts are ownership interests, owners of either part can sell, mortgage, or gift their interest. The duration of a life estate is determined by the lifetime of a designated individual, so the deed creating the life estate must provide for transfer of title upon the designated person's death. At the end of the life estate, title reverts to the original grantor (estate in reversion) or conveys to a third party (remainder estate).