Chp 3 - Legal Issues

Life estate

- Ability to live on the property. only during the duration of the tenant. - Live on property for a term of years

Condominiums

- Generally sells at a higher price per square foot since it comes with the full bundle of rihts

Littoral rights

- Lake - stationary body of water - Land borders on a body of water, such as lake, ocean, or sea, to reasonable use and enjoyment of shore and water the property borders on

Riparian right

- River Rights of property owner whos land borders a natural water course, such as river. "Riverbank". Water that flows past the property.

Subsurface rights

- minerals, oil/natural gas, aquifers etc. If there's oil under your house, it belongs to you.

Tenancy in common

- ownership of realty by two or more persons, each of whom has an undivided interest, without the "right of survivorship"

Land Rights

- subsurface rights - air rights - riparian rights (water) - littoral rights

Act of Waste

- tenant going into the apt and putting graffiti on the walls, screwing up the carpet. - Describes a cause of action that can be brought in court to address a change in condition of a property brought about by current tenant that damages or destroys value of the property.

Freehold estates

1. Fee simple ( full bundle of sticks- right to control & inherit) >> Fee simple absolute 2. Fee simple defeasible - owner holds a fee simple title contingent upon certain conditions. >> it goes away! >> qualified fee simple (qualification as opposed to condition) *under the qualification of my brother not living on the property and will be given fee simple 3. Life estate- you can live on the estate but you don't have fee simple. Conveyance of title property for the duration of the life of guarantee.

Full Bundle of rights

1. Right to quiet enjoyment 2. Right to dispose of property by gift 3. Right to sell the property by deed, or by will 4. Right to control the use of the property (only within in legal limits)

Periodic tenancy

30 days or month to month

Joint tenancy

50/50. Bundle of sticks goes to the other person when one dies. Like married couples. When one dies, the ownership is distributed to the other joint tenant, NOT estate of deceases. - two people owning a fee simple

Joint Venture

A business agreemtn in which the parties agree to develop, for a finite time, a new entity and new assets by contributing equity

Parcel

A piece of land under one ownership

Fee simple estate

Absolute ownership of a real property; a person has this type of estate where the person is entitled to the entire property with unconditional power of disposition during the person's life and descending to the person's heirs or distributees.

Partition

Division which is made of real property btwn those who own it in undivided shares

Eminent Domain

Government comes in and buys your land to build a highway or build a bridge.

Tenancy at sufferance

Hold-over tenancies. The tenant doesn't move out. Has to go to court and have judge evict the tenant

Undivided intereset

Interest in property owned by tenants whereby each tenant has equal right to enjoy the entire property

Cooperative

It is a corporation. You're not getting real property, you're getting personal property & stock certificate. - This means you get proprietary lease (right to live there) & you get stock certificate. It's not real property. So you don't need a mortgage. - You're getting all your bundle of sticks with restrictions. - Generally sells less per square foot since it comes with a limited bundle of sticks

Real Estate / Real property

Land, and generally whatever is erected upon or affixed thereto. - Uses of real estate: Residential, commercial, industrial, vacant land * Real property is immobile (location specific) and illiquid! * Real property is influenced by supply, demand, and scarcity!

Estate for years

Leasehold estate for any specific period of time. An estate for years is not automatically renewed

LLC

Limited Liability Company - hybrid of individual ownership & regular cooperation This says that owner of property Tenant has issue or fire, you are not responsible for that. You're not on the hoook for that. LLC protect a company's assets from liability. Especially great for investment ownereship. When you lease something out, you limit your liability. - Pass- through tax entity, meaning any profits earned by the company are passed through the LLC and paid at the personal level.

Trustor

Person

Remainder Interests/ Remainderman

Person who is to receive the property after the termination of the prior esate

Chattel

Persona Property, such as household goods

Trade Fixture

Personal property so attached to the land or improvements as to become part of the property - Removal of such fixture is a problem.

Special purpose of real estate

Property that is appropriate for one type of use or limited use. This type of property has unique design or layout, uses special construction materials, or other features that limit the property's utilities for purposes other than the one for which it was built. Ie. church, theatre, school

Easements

Right to pass through (ie. walk through someone's property on the beach. or access to water...)

Air rights

Rights in real property to use space above the property

Illiquidity

The concept that property is an illiquid asset because it cannot easily be sold or exchanged for cash

Trustee

The person who administers the trust

Beneficiary

The person who receives or is to receive the benefits resulting from certain acts. - somebody under a will or trust

Bundle of rights

The premise that the ownership of real estate consists of the ownership of various rights associated with it. These rights include the right to use and/or occupy, the right to sell in whole or in part, the right to lease, the right to bequeath and the right to none of the foregoing.

Escheat

The reversion to the state of property in event the owner thereof abandons it or dies, without leaving a will and has no distributees to whom the property may pass by lawful descent. -

Tenancy by Entirety

When one spouse dies, it goes to the other spouse directly.

Right of survivorship

When your joint tenant dies, you get the rights after. Deed trumps contracts.

Trust

an arrangement whereby a person ( a trustee) holds property as its nominal owner for the good of one or more beneficiaries - Irrovocable Trust - rights given to other person. (banks typically don't grant it) - Revocable trust - banks more favorable because owner of trust keep all rights of property

Leasehold estate

ownership of temporary right to hold land or property in which a lessee or tenant holds rights of real property by some form of title from a lessor or landlord - Estate at will: no period of time, no term. Just tenancy at will. "you are my tenant" until parties agree to terminate.

Partition

when judge orders a sale. - division which is made of real property btwn those who own it in property shares. When two parties settle the property through a judge