Chapter 3 - Legal Issues

Bundle of Rights (Chapter 3)

(Real Estate vs. Real Property) Think of real property as a bundle of sticks. The sticks in the bundle include the major sticks of land, improvements, fixtures, and fruits of soil, all of which are tangible. The bundle includes intangible rights such as air, water, and mineral rights; easements; leases; mortgages; licenses and profits. (pg 112)

Unities of Interest, Possession, Time, and Title (Chapter 3)

- Unity of Time exists when co-owners receive their title at the same time in the same conveyance. - Unity. of title exists when the co-owners have the same type of ownership, such as a life estate, fee simple, or fee simple on condition. -Unity of interest exists when all co-owners have the same percentage of ownership. - Unity of possession exists when all co-owners have the right to posses or access all portions of the property owned, without physical division. This is called possession of an undivided interest. (pg 123)

Party Wall (Chapter 3)

A common wall in a duplex or condominium. (pg 135)

Joint Tenancy (Chapter 3)

A form of co-ownership that requires all four unities of time, title, interest, and possession (pg 123). Joint tenants must: - have the same interest in the property - receive their title at the same time from the same source - have the same percentage of ownership - have the right to undivided possession in the property. (pg 125)

Homestead (Chapter 3)

A homestead life estate is available only on the family home, not on all of the inheritable property. New York does not recognize a homestead life estate, and downer and curtsey have been abolished in New York.

Easement (Chapter 3)

A nonpossessory interest in land owned by another. Someone who owns an easement right does not own or have possession to the land where the easement lies. (pg 135)

Easement Appurtenant (Chapter 3)

A right of use in the adjoining land of another that moves with the title to the property benefiting form the easement. (pg 136)

Mechanic's Lien (Chapter 3)

A specific lien filed by a person (a mechanic does not refer to someone who works on vehicles, but to a person who provides labor to a specific property, such as a carpenter) who provides labor to a property. A materialmen's lien is a specific lien filed by a supplier of products for the construction or improvement of a building.

Parcel (Chapter 3)

A specific portion of land, such as a lot. (pg 118)

Partitioned (Chapter 3)

A tenant in common may bring legal action to have the property partitioned. This allows each tenant to have a specific and divided portion of the property exclusively. (pg 125)

Easement for Light and Air (Chapter 3)

A type of negative easement. This easement prevents an adjoining land owner from building any structure that would obstruct the passage of light or air from reaching the dominant land. (not from text - term mentioned on page 137)

Easement by Prescription (Chapter 3)

An easement acquired by continuous, open, and hostile use of the property for the period of time prescribed by state law. (not from book - term mentioned on page 138)

Easement by Condemnation (Chapter 3)

An easement created by the government or government agency that has exercised its right under eminent domain. (not from book - term mentioned on page 138)

Encroachment (Chapter 3)

An encroachment is created by the intrusion of some structure or object across a boundary line. (pg 139)

Joint Venture (Chapter 3)

An organization formed by two or more parties to invest in real estate or other investments. (pg 130)

Littoral Rights (Chapter 3)

An owner's rights for property bordering a stationary body of water. (pg 115)

Riparian Rights (Chapter 3)

An owner's rights in land that borders a flowing body of water. (pg 115)

Encumbrance (Chapter 3)

Anything that lessens the bundle of rights in real property. Examples are encroachments, apputenances, easements, leases, liens, assessments, and restrictive covenants. (pg 112)

Curtesy/Dower (Chapter 3)

Automatic life estates owned by a surviving spouse in inheritable property owned by the deceased spouse alone during the marriage. If the owner of the property was the husband, the wife has a life estate called dower. If the owner of the property was the wife, the husband has a life estate called curtsey. (pg 121)

Lis Pendens (Chapter 3)

Comes from Latin and means "pending litigation." This filing (form) is a legal notice that a lawsuit is pending affecting title or possession of a specific property. (pg 132)

Illiquid (Chapter 3)

Difficult to convert readily to cash. (pg 117)

Personal Property (Chapter 3)

Everything that is not real property is personal property. Personal property is readily movable. (pg 113)

Easement by Necessity (Chapter 3)

Exist when land has no access to roads and is landlocked. (pg 138)

Life Estate in Reversion (Chapter 3)

If the conveyance does not state a person or persons to receive the title upon the death of the life tenant or another specified person, a life estate in reversion is created. (pg 121)

Subsurface Rights (Chapter 3)

Includes real property rights to the area above and below the earth's surface. (pg 114 - 115)

Trade Fixtures (Chapter 3)

Items of personal property that a business operator installs in rented building space. They are presumed to remain personal property. (pg 115)

General Liens/Specific Liens (Chapter 3)

Liens fall into two categories. SPECIFIC LIENS are claims against a specific and readily identifiable property, such as a mortgage. GENERAL LIENS are claims against a person and al of his or her property, such as a judgement. (pg 131)

Easement by Implication (Chapter 3)

Occurs because of necessity, such as the conveyance of a land-locked property. (not from book - term mentioned on page 138)

Trustee/Trustor (Chapter 3)

One who holds title to property the benefit of another, called a beneficiary. (pg 127)

Beneficiary (Chapter 3)

One who receives benefits or gifts rom the acts of others given, for example, a will or trust. (pg 127)

Tenancy in Common (Chapter 3)

Ownership by two or more people holding title to a property at the same time. (pg 124)

Life Estate (Chapter 3)

Ownership, possession, and control for someone's lifetime.

License (Chapter 3)

Permission to do a particular act or acts on another's land without possessing any estate or interest in the land. (pg 140)

Chattel (Chapter 3)

Personal property (pg 113)

Fixture (Chapter 3)

Personal property that attaches permanently to the land or improvements and becomes part of the real property (pg 115)

Revisionary Interest (Chapter 3)

Possession of the property goes back to the owner at the end of the life estate. (pg 121)

Special Purpose Real Estate (pg 116)

Properties that are considered to have a limited use, such as a church, school, or tennis club (not from text)

Air Rights (Chapter 3)

Rights to the air above the earth (pg 114)

Real Property Tax Lien (Chapter 3)

Taxes levied by a local government constitutes a specific lien against the real estate.

Right-of-Way (Chapter 3)

The common term for an easement (pg 135)

Easement by Grant (Chapter 3)

The creation of an easement by one party expressly transferring the easement to another party. (not from book - term mentioned on page 138)

Easement in Gross (Chapter 3)

The government, one of its agencies, or a public utility owns this type of easement. Examples are the water and electric lines that run underground in subdivisions. (pg 135)

Appurtenances (Chapter 3)

The inherent or automatic ownership rights that are a natural consequence of owning property. The most common are: - profit - air rights - subsurface rights - water rights pg 139

Undivided Interest (Chapter 3)

The interest of co-owners in which individual interest is indistinguishable. (Everyone owns part of the whole property.) (not from text)

Tenancy by the Entirety (Chapter 3)

The joint ownership, recognized in some states, of property acquired by husband and wife during marriage. Upon the death of one spouse, the survivor becomes the owner of the property. (not fro text)

Real Property (Chapter 3)

The land and improvements, and all legal rights, power, and privileges of real estate ownership. (pg 112)

Dominant Tenement/Servient Tenement (Chapter 3)

The land that benefits from an easement appurtenant is called the DOMINANT TENEMENT or estate. The land that must suffer and allow the use is called the SERVIENT TENEMENT or estate. (pg 136)

Remainder Interest/Remainderman

The remnant of an estate that has been conveyed to take effect and be enjoyed after the termination of a prior estate, such as when an owner conveys a life estate to one party and the remainder to another. (not from text)

Involuntary/Voluntary Liens (Chapter 3)

Voluntary Lien occur when an individual consents to placing a security against himself or his property. An example of a voluntary lien is a mortgage lien in which the parties voluntarily consents to place their house a security for a mortgage loan. An Involuntary Lien occurs through a legal proceeding in which a creditor places a claim on real and/or personal property to obtain payment of debt. An example of an involuntary lien is a mechanic's lien in which the contractor places a lien against a property for completed work not paid for by the owner. (pg 130)

Right of Survivorship (Chapter 3)

When one (or more) of the co-owners dies, the surviving co-owner(s) automatically receive the interest of the deceased co-owner. (pg 123)

Act of Waste (Chapter 3)

When the life tenant abuses or misuses the property. (pg 122)

(Ownership) in Severalty (Chapter 3)

When title to real property is in the name of only one person or entity, it is an estate (ownership) in severalty because the interest is "severed" from all others. (pg 123)

Subordination Agreement (Chapter 3)

a subordinate agreement modifies the order o priority of liens against a property. (pg 134)

Fee Simple Estate (Chapter 3)

largest, most complete right in property (not from text)