Property Ownership - Chapter 2
Bundle of Legal Rights
(1) Use/Possession - Property owners have the right to benefit from the property which means it can be used in any manner the owner chooses to enjoy the benefits. Included in the right to benefit is the assurance that another may not interfere with the owners use or possession. The key ingredient of possession is the right to exclude others. This right avoids the costs of overuse that would be present if there were no right to exclude. Without the right of exclusion, no one would buy or maintain the property or increase its value. (2) Control - Control allows for the owner to use the property in any manner he/she deems, so long as the use does not conflict with other zoning or municipality laws. (3) Disposition - Disposition is the key to providing the proper stewardship of the land. The type of estate owned, Freehold or Non-Freehold, will determine the extent of disposition. Right of disposition allows the owner to sell, lease, assign or sublet. (4) Quiet Enjoyment - When expressed in the deed of conveyance, the seller of real estate is obligated to protect the purchaser against lawful claims of ownership by others. Purchasing title insurance is the only way a seller can guarantee marketable title to real estate. Tenants are also granted the right to quiet enjoyment as conveyed through a lease agreement. The right to quiet enjoyment for non-freehold estates are only guaranteed during the term of the lease.
Estates in Land
1 Tenancy - Tenancy has two different definitions depending on the type of estate one has an interest in. Tenancy in Freehold estates will indicate how property in owned, alone or with partners. Tenancy in Non-Freehold estates will indicate the duration or period of time in which one has an interest in the estate. 2. Interest - One having an interest in real estate comes with the right of Use, Control, Possession and Disposition. 3. Fee - The word "Fee" indicates an estate that can be inherited. 4. Title - Title is evidence of legal ownership. When buying real estate, it is important to assure your right to occupy, use or eventually resell it without interference.
General Liens
1) Federal Tax Liens 2) State Tax Liens 3) Decedent's Debt Lien
Economic Characteristics of Land
1. Scarcity - Although the old saying is true, that we are not making any more land, land is not scarce. More land remains unused than used throughout the world. 2. Improvements - will increase or decrease the value of land depending on the improvement and purpose for the land. 3. Location - I am also sure you heard the true value in land is Location, Location, Location
Measuring land
43,560sf per acre
Real Estate Investment Trust (REIT's)
A business entity whereby investors buy certificates in the trust, and the trust in turn invests in mortgages or real estate. Investors receive income according to the number of shares they own. In order to qualify for the advantages of being a pass-through entity for corporation tax, a REIT must comply with the following Internal Revenue Code provisions: • Structured as corporation, business trust, or similar association • Managed by a board of directors or trustees • Shares need to be fully transferable • Minimum of 100 shareholders • Pays dividends of at least 90% of REIT's taxable income • No more than 50% of the shares can be held by five or fewer individuals during the last half of each taxable year • At least 75% of gross income from rents or mortgage interest • Have no more than 20% of its assets consist of stocks in taxable REIT subsidiaries
Condominiums
A condominium by definition is simply air space. Anyone with interests in a condominium will own the air space between the walls. This is also a form of joint ownership in which each unit is individually owned in fee simple. Condominiums can be used as residential or commercial real estate. a. Conversion - It has become very popular for apartment owners to convert the apartment over to condominiums. Before the owners can sell the apartments and convert them to condominiums, the owner must notify the current tenant within sixty days, in writing, of their intent to sell. Owners must also provide the current tenants the first right to purchase the unit and if the tenant has to relocate, the owner may be required to provide the tenant with relocation assistance. The dollar amount of this assistance could be up to three months rent. b. Fee Simple Ownership - Condominium ownership must be in fee simple for both the unit air space as well as property common areas. The form of tenancy can be of any form chosen by the owner as long as they own it in fee simple. Each individual unit will be taxed and mortgaged separately. The tenancy can be in severalty, tenancy in common or joint tenancy. c. Common Elements - The common areas must be owned as tenants in common, but without the right to partition the common areas. (Owners cannot sell common areas separately from individual units). The interest in common areas will be directly proportionate to the interest owned in individual units. d. Owner's association and bylaws - Condominium properties must be created by recording a master deed and bylaws as required by the SC Horizontal Property Act. The bylaws provide the laws and regulations in which the association must abide. The Association will be run and managed by the developer until at least 51% of the units are owned by individual owners.
Limited Partnership
A limited partnership consists of one or more general partners and one or more limited partners. The same person can be both a general partner and a limited partner, as long as there are at least two legal persons who are partners in the partnership. The general partner is responsible for the management of the affairs of the partnership, and he has unlimited personal liability for all debts and obligations. Limited partners have no personal liability. The limited partner stands to lose only the amount which he has contributed and any amounts which he has obligated himself to contribute under the terms of the partnership agreement. Limited partnerships are often used as investment vehicles for large projects requiring a considerable amount of cash. Individual limited partners contributing money to a venture, but not having management powers, will not have any personal liability for the debts of the business.
Lis Pendens
A lis pendens is notice that a lawsuit is pending. This is the method of informing the public that a particular property will soon have a judgment against it.
Planned Unit Developments (PUDs)
A special type of subdivision that doesn't have to comply with all standard zoning and subdivision regulations. For example, non-residential and residential buildings may be combined in the overall plan. Since PUD developers don't have to follow setback and lot size rules, buildings may also be closer together, creating large open spaces for public use and enjoyment. In most states, detailed plans must be submitted to a planning or zoning commission to get permission to build a PUD.
Remainder
A third named party to receive the interest of a life estate upon the death of the life tenant (or grantee). This party has remainder interest. Remainder interest does not have the right to occupy a residence. Immediately upon the death of the life tenant, the remainderman loses remainder interest and now owns the property in fee simple.
Townhouse
A townhouse is one of a row of homes sharing common walls. Differing from condominiums, townhouse ownership does include individual ownership of the land. There can also be common elements, such as a central courtyard, that would have shared ownership.
Trade Fixture
A trade fixture is a piece of equipment (personal property) on or attached to the real estate by the tenant by the tenant which is used in a trade or business. Trade fixtures differ from other fixtures in that they may be removed from the real estate (even if attached) at the end of the tenancy of the business, while ordinary fixtures attached to the real estate become part of the real estate. The business tenant must compensate the owner for any damages due to removal of trade fixtures or repair such damage. If the trade fixture is not removed prior to the expiration of the lease, it will become real property and belong to the landlord.
How Easements Created
A) Creation by mutual agreement will be expressed in the deed of conveyance. B) Creation by other means would be as follows: 1) Necessity. Property owners may not be legally landlocked from having access to their property. Should an owner have no other means of accessing his property, the courts will grant the owner an easement by necessity over the land of another. 2) Prescription. When one openly trespasses across the property of another for a continuous period of time and the owner of that property does nothing to stop it, the trespasser will obtain an easement by prescription and the owner of the property will have no legal course of action to stop it. The continuous period of time in South Carolina is typically at least ten years. 3) Condemnation. An easement by condemnation is created by the government or government agency that has exercised its right under eminent domain. 4) Dedication. An easement granted by the owner for public use without valuable consideration. 5) Implication. When one party uses the land of another (easement) for a continuous period of time, the easement would convey to a new owner by implication should the party using the easement sale their interests.
Termination of easements
A. Stated Conditions - The original easement grant may specify when or under what conditions the easement will terminate. B. Unity of Ownership (Merger) - If the same person acquires ownership of the dominant estate (easement) and the servient estate, the estate merges and is destroyed. C. Release - An easement (including an easement in gross) can be terminated by a deed of release from the owner of the easement to the owner of the servient tenement. D. Abandonment - An easement is extinguished when its holder demonstrates by physical action (e.g., building structure that blocks access to easement on adjoining lot) an intent to permanently abandon the easement. E. Estoppel - Oral expressions of an intent to abandon do not terminate an easement unless in writing (release) or accompanied by action (abandonment). But if the owner of the servient estate changes his position in reasonable reliance on the representations made or conduct by the owner of the easement, the easement terminates through estoppel. F. Prescription - To terminate an easement by prescription there must be an adverse, continuous interruption of the use for the prescription period. G. Necessity - Easements created by necessity expire as soon as the necessity ends. H. Condemnation and Destruction - Condemnation of the servient estate extinguishes all easements. Involuntary destruction of a structure in which there is an easement extinguishes the easement; voluntary destruction of such a structure does not.
Priority of liens
All liens will be paid off in order of priority which is established by time and date in which it was recorded. The following is an example of how liens are paid off in priority.
Fixture - Annexation
An addition to property by the act of joining or uniting one thing to another, as in attaching personal property to real property, thereby creating a fixture. For example, a sink becomes a fixture when it is annexed to the plumbing outlet or a fence installed around the yard is annexed to the land.
Easement Appurtenant
An easement appurtenant grants rights of one to use or cross the property of another. The dominant tenement is the estate with the right to use or cross the property of another estate known as the servient tenement. The servient tenement will bear the burden of the easement which must allow the dominant tenement to use. The easement appurtenant will convey from the seller to a new buyer because the easement appurtenant is in the deed.
Easement in Gross
An easement in gross will have a servient tenement but not a dominate tenement. An example of an easement in gross would be for a property owner to grant permission to another, for as long as they live, to use the owner's property, such as permission to use the owners well. There are two types of easements in gross.
Encroachments
An encroachment is the unauthorized and/or illegal intrusion of a property owner onto that of another property owner. Common encroachments would include fences, shops/sheds, driveways, tree limbs, etc.
Business Entities
Business entities can be used when practicing real estate. Two primary reasons one would consider operating out of a business entity would be for liability and tax purposes. Recommend you speak to an attorney and/or accountant to determine if a business entity would be the right thing for you. If there are multiple owners of the business entity, ALL owners must have a real estate license before commissions can be paid to the business entity. Additionally, all owners must be licensed same Broker-in-charge.
Metes and Bounds System
By definition of the metes and bounds system, metes refers to distance and bounds refers to direction. This system requires the surveyor to first locate the monument, which may be natural or manmade, which with the distance and compass heading, will lead to the Point of Beginning (POB).
Commercial Easement in Gross
Commercial easements in gross are granted to businesses. This type of easement may be assigned or transferred and it is not measured by anyone's life. In essence, they last forever.
Differences in condominiums and cooperatives
Condominium style ownership allows for each unit to be individually owned whereas cooperative style ownership only owns shares in a corporation. The major difference here is that condominium units are individually mortgaged and taxed whereas cooperative owners may be liable for other owners should they default since the corporation is the entity being taxed, not individual units. There is also a significant difference in terms of tax deductions. Since condominiums are individually owned, the owner can claim mortgage interest and taxes whereas cooperative owners cannot.
Mechanic's lien (Specific)
Contractors providing labor and material on real property have the right to file a mechanics lien against the property until the debt is satisfied. Property owners should also know that sub-contractors may also file a mechanic's lien due to non-payment by the general contractor even if the general contractor has been paid. If general contractors do not pay sub-contractors, the property owner will also be liable and must pay the amount owed to the sub-contractor. Purchasers of real estate would be wise to require the seller to provide copies of "Paid" receipts for all work provided by all contractors (general and sub-contractors) when repairs are required as part of the purchase and sales agreement.
Encumbrances
Encumbrances render a property unmarketable, which means the owner cannot sell or otherwise convey the property to another prior to removing the encumbrance.
Simple Absolute
Fee Simple Absolute is the highest degree of ownership recognized by this country. The word "Fee" indicates that the estate can be inherited and the word "Simple" indicates that the estate is not complicated or without restrictions. This form of freehold estate is the most common type of estate conveyed and certainly the most desired.
Reversion
In the absence of a named remainderman for the life estate, the estate will revert back to the original owner or the owner's heirs
Joint Tenancy
Joint tenancy also requires more than one owner and does require special wording to create. This form of tenancy must specify a right of survivorship. Joint tenants may not dispose of their interests in any manner. If a joint tenant should die, the remaining tenants will receive the remaining interest. All joint tenants will receive one title with all names on the title indicating all tenants owning the whole property. There is no division of interest. In the event one tenant desires to dispose of their interest and the other tenants are not in agreement, the tenant must request the court to partition the property. If the court partitions the property, the tenant will now own a specified amount of interest in the property as tenant in common with remaining tenants as joint tenants. As a tenant in common, one may dispose of their interest by deed or devised by will. The interest conveyed will by as tenant in common.
Liens
Liens are placed on real and/or personal property by creditors which serves as security until the debt on that real and/or personal property is satisfied.
Mortgage lien (Specific)
Mortgage liens are voluntary liens. Purchasers of real estate sign a mortgage when financing the property which will place a lien against the individual property financed. Property not listed in the mortgage will not be affected in case of default.
Fixture - Agreement
Parties to the transaction can agree in the contract of sale as to whether the fixture(s) will remain with the property or will be removed from the property.
Fixture - Adaptation
Parties to the transaction must also consider the character of the item and its adaptation to the real estate. If, for example, an article was fitted or constructed specially for a particular location or use in a house, one can argue that the article becomes a permanent part of the building, and thus a fixture.
Periodic Tenancy
Periodic tenancy is also referred to as period to period. This form of tenancy will continue as long as the tenant pays the rent and the lessor accepts the rent. By the lessor accepting the rent, it automatically extends the agreement for another period. The most common period is from month to month. However, it could be for any term agreed to by the parties. If the period is for one year and the lessor accepts the rent after the first year is completed, it will automatically extend the agreement for another year. Either party may terminate this lease upon giving the required notice to the other party as required by state law.
Personal Easement in Gross
Personal easements in gross are granted to a grantee and terminate upon the death of the grantee. The easement in gross is to be used by the grantee and no other person(s). The difference between the easement in gross and a license is that the easement in gross is irrevocable and the license may be revoked at any time.
Pre-Fab Homes
Prefab is an abbreviation for prefabricated. The word prefab is often used to describe any type of home that is made from easy-to-assemble building parts that were manufactured off-site. Manufactured homes and modular homes are both types of prefab housing.
Mineral Rights
Property owners, unless otherwise stipulated in the deed of conveyance, also own the surface and subsurface rights of the land. Rights to minerals may be sold or leased for mineral recovery. Exceptions would include "oil rich" states that may very well strip property owners and buyers of all mineral rights. The exclusion should be identified in the deed of conveyance.
Tax lien (Specific)
Property tax liens will always be a first lien and does not need to be recorded. Property taxes will be paid first upon default and foreclosure sale. Property owners in South Carolina will receive a one year "right of redemption" in which they retain the right to pay off the delinquent taxes and all other fees and regain title to the property.
S Corporation
S Corporation is a profit-making corporation organized under state law whose shareholders have applied for and received subchapter S corporation status from the Internal Revenue Service. Electing to do business as an S corporation lets shareholders enjoy limited liability status, as would be true of any corporation, but be taxed like a partnership or sole proprietor. That is, instead of being taxed as a separate entity (as would be the case with a regular or C corporation) an S corporation is a pass through tax entity: income taxes are reported and paid by the shareholders, not the S corporation. In other words, there are no corporate taxes. To qualify as an S corporation a number of IRS rules must be met, such as a limit of 75 shareholders and citizenship requirements.
Special Assessments (Specific)
Special assessments are charged to real estate owners that have benefited by betterment as a result of some improvement provided by the county or taxing district. Examples of such improvements could be a sidewalk, paved roads, etc.
Specific Liens
Specific liens can only attach to and affect a specific piece of property, whether it is real or personal.
Tenancy in Common
Tenancy in common requires more than one owner and does not require any special wording to create. Owners will receive their own title listing just their name and the amount of interest owned in the property. There is no requirement for the interest owned by partners to be equal shares. However, specific interest in the property cannot be divided and will be shared by all partners. There is no requirement for right of survivorship under tenancy in common. Owners may dispose of their interest in any manner desired, either by deed or devised by will
C Corporation
The C Corporation is a legal form of business entity that may have an unlimited number of shareholders, which may include shareholders who are foreign citizens. Shareholders are protected from the corporation's liabilities. "Double taxation" frequently occurs, because the corporation is taxed on its profits, and shareholders are also taxed on the distributions they receive, such as profit sharing payments or dividends. C Corporation may be public - one in which shares are offered for sale to the public, or privately held - one in which shares are not sold to the public. Usually shares are held by the founders (often a family), by board members and by private investors, such as venture capitalists, who may or may not sit on the board of directors. While public C corporations have far more stringent reporting requirements than privately held corporations, both must have annual shareholder meetings and minutes of those meetings must be recorded.
Limited Liability Company (LLC)
The LLC is a relatively new legal entity created by statute and recognized in all fifty states. The purpose of the legislation is to allow individuals to create a legal entity that avoids many of the tax and business problems inherent in the corporate and partnership structure. The intent of the law is to allow individuals to conduct their financial and business affairs in an efficient and convenient manner without the restrictions, formalities, and liabilities associated with those other entities. More particularly, the LLC provides the protection from liability of a corporation without the formalities of corporate minutes, bylaws, directors, and shareholders. In contrast to corporate law, which allows shareholders and officers to be individually sued if the corporate formalities are not followed, the LLC law specifically bars a lawsuit against a member for the liabilities of the LLC. That is an important distinction which you should understand. The principle shareholders and officers of a corporation are routinely named as defendants in a lawsuit against the company-forcing them to incur attorney's fees to defend themselves and rendering the corporate shield meaningless from a practical standpoint.
General Partnership
The distinguishing feature of a partnership is the unlimited liability of the partners. Each partner is personally liable for all of the debts of the partnership. That includes any debts incurred by any of the other partners on behalf of the partnership. Any one partner is able to bind the partnership by entering into a contract on behalf of the partnership. If Jackson and Jason are partners, and Jason signs a contract on behalf of the partnership, Jackson will be personally liable for the full amount. This is true regardless of whether Jackson authorized the contract or whether he even knew of its existence. This feature of unlimited liability contrasts with the limited liability of the owners of a corporation. Because each of the partners has unlimited personal liability, a general partnership is the single most dangerous form for conducting one's business. Not only is a partner liable for contracts entered into by other partners, each partner is also liable for the other partner's negligence. When two or more physicians or other professionals practice together as a partnership, each partner is liable for the negligence or malpractice of any other partner.
Defeasible Fee
The first thought that should come to mind when you hear the word "Defeasible" is restrictions or limitations. This form of estate comes with certain conditions that must be adhered to or the owner will lose all rights and ownership of the estate. There are three forms of Defeasible Fee Estates. Obviously, all of them will have some restriction or limitation but the method in which the owner loses interest in the property upon violation of the restriction will be determined by the form of Defeasible Fee Estate. An example of a restriction that could be placed on real estate might be one owning land adjacent to a hospital and the owner gives this land to the hospital so long as the land is always used for hospital purposes. If the land is ever used for any other purpose, the hospital will lose all rights and interests in the land.
Lot and Block System
The lot and block system is the most common method of land descriptions. It does require plat maps to be filed with the county public records. A plat map is an engineer's map showing the land use for the land in question. Developers commonly use this system by subdividing areas into Subdivisions and then dividing the subdivisions into lots and blocks.
Cooperatives
The purchase of a cooperative provides for one to receive shares in a non-profit corporation which allows for the owner of those shares to occupy and own one of the apartments. A corporation may purchase a twelve unit apartment building (all units of equal size) for $1,800,000.00. An individual may purchase one of those units for $150,000.00 and will receive ownership by stock certificate, not by deed. Corporation ownership must be in severalty. Proprietary lease. - Owners of a co-op will receive a proprietary (ownership) lease since the owner owns stock in the corporation. This form of lease does not require rent but the owner will be responsible for the unit's pro rata share of the corporation's expenses. Owners' Association. - Shareholders elect a board of directors which has the responsibility of maintaining and operating the cooperative. The association controls the use of each apartment since they are all legal owners. A shareholders voting authority is directly proportional to the number of shares owned in the corporation.
Government Rectangular System (Not used in South Carolina)
The rectangular land survey system was adopted by the federal government in 1785. It is used in all states except for the original 13 colonies, the states created from these colonies and Kentucky, West Virginia and Texas. There are geographical locations all over the US that serve as a base reference. The principal meridians running North-South and East-West intersect at these locations. Beginning at these points, the surveyors established lines every 6 miles North, South, East and West of the crossing point. Each of these squares are called townships. They are 6 miles by 6 miles, thus have an area of 36 square miles. Lines running East-West are called township lines. The lines running North South are called range lines. They are further divided up into areas of 1 square mile called sections. Thus there are 36 sections in a township. Each section contains 640 acres.
Non-Freehold Estates
The tenancy (length of time) in which one owns in a non-freehold estate is agreed upon in the lease agreement. The lessee (tenant) has the legal bundle of rights that will pass upon lease agreement. The bundle of rights convey by non-freehold estate are; a. Use. The lessee will have the right to use the property in the manner agreed upon in the lease agreement b. Control. The lessor must give up control of the property to the lessee at the time the lease is initiated. The lessor will not have any control of the property during the time of the lease agreement. c. Possession. The lessee also has exclusive possession of the property without disturbances during the term of the lease. d. Disposition. The lessee will have the right to assign or sub-let unless otherwise stipulated in the lease agreement. Most leases will probably take away the right of disposition. If disposition is not explicitly denied in the lease agreement, the tenant will have the right but only if the lease is an estate for years. e. Quiet Enjoyment. The right to stay without being harassed in any manner.
Fixture - Intent
The test of intent will most likely be the primary test considered by the courts. Contract law states that fixtures in/on the property at the time the contract is ratified, and in the absence of an agreement between the parties, the fixture must remain with the property.
Estate for Years or Estate for Term
This form of estate is for a definite period of time. The lease will indicated the start date and the end date. Under an estate for years, the estate will automatically expire without the requirement of notice to terminate. The period of time under an estate for years can be for any amount of time as agreed to by the parties.
Estate Pur Autre Vie
This form of life estate is granted to the life tenant for as long as some other party is still alive. Upon the death of the other named party, title will pass back to the grantor, grantor heirs or some other third named party in the estate. An example could be for an elderly couple to have a live in nurse assist the couple with everyday needs. When the husband dies, he leaves the live in nurse (life tenant) the Estate Pur Autre Vie. The live in nurse has the full bundle of rights to enjoy and benefit from the estate for as long as the wife is still alive. Upon the death of the wife, the estate will revert to some third named party in the estate.
Ordinary Life Estate
This form of life estate is granted to the life tenant for as long as the life tenant is alive. Upon the death of the life tenant, title will pass back to the grantor, grantor heirs or some other third named party in the estate.
Tenancy by Sufferance
This form of tenancy exists when the lessee remains in the property after the expiration of the lease and without the landlords consent. It could also result from a tenant being in breach of contract and refuse to vacate the property.
Tenancy at Will
This form of tenancy has no definite or certain expiration date. The tenancy will continue for as long as the landlord is willing to accept the rent and the tenant is willing to pay the rent. The agreement can be terminated at any time by either party upon giving such notice. This form of tenancy will automatically terminate upon the death of the lessee.
Tenancy by the Entirety (Marital Ownership)
Type of concurrent estate in real property held by a Husband and Wife whereby each owns the undivided whole of the property, coupled with the Right of Survivorship, so that upon the death of one, the survivor is entitled to the decedent's share. This form of tenancy is not applicable in South Carolina.
Tenements
Typically, an easement involves two tenements, i.e., parcels of land. There is the dominant tenement, which is the plot of land to which the benefit an appurtenant easement is attached. Second, there is the servient tenement, which is the plot of land which bears the burden of the easement. The servient tenement owner in essence serves the dominant tenement owner by providing and easement across their land for the purpose of accessing some other privilege as listed in the deed of conveyance.
Fee Simple Subject to a Condition Subsequent
Under this form of Defeasible Fee, upon violation of the lands use, the grantor must take some affirmative action to recover possession of the land
Fee Simple Determinable
Under this form of Defeasible Fee, upon violation of the lands use, the land will automatically revert back to the grantor. The grantor does not have to take any affirmative action to recover possession.
Fee Simple with an Executory Interest
Under this form of Defeasible Fee, upon violation of the lands use, the rights and interests of the land will automatically be passed to some third named party. There is no affirmative action required with an executory interest.
Water Rights
Water rights generally emerge from a person's ownership of the land bordering the banks of water (river, stream, lake, or ocean) or from a person's actual use of the water. Water rights are conferred and regulated by judge-made common law, state and federal legislative bodies, and other government departments. Water rights can also be created by contract, as when one person transfers his water rights to another.
Tenancy in severalty
When one person or legal entity owns the entire estate, it is known as tenancy in severalty.
Real estate (Realty)
a piece of land, including the air above it and the ground below it, and any buildings or structures on it.
Personal Property (Personalty)
anything that can be owned that is not real property such as cars, bank accounts, wages, securities, a small business, furniture, insurance policies, jewelry, patents, pets and season baseball tickets are all examples of personal property. Personal property may also be called personal effects, movable property, goods, chattel, emblements, and personalty.
Fixtures
articles which were once a personal property (chattel) but which has now become a part of the real estate because the article is permanently attached to the soil or to something attached to the soil. All things that are attached to property, such as ceiling lights, awnings, window shades and doorknobs. Fixtures are automatically included in a sale, unless specifically mentioned in the contract as going to the seller.
Licenses - (Non-possessory interest)
i) License. A license is granted by a property owner to another for the purpose of using the owners land for a particular purpose. A common example of a license is for a property owner to grant his neighbor the right to cross over his property to fish in his pond. ii) Profit a prendre. Profit a prendre is the right granted by a property owner to another to come onto the owners land and take something from the land. An example might be an owner giving another permission to come on the land for the purpose of cutting fire wood.
Physical Characteristics of Land
i. Immovable - One can move topsoil/dirt as well as other components on the land, but the location of land cannot be moved. ii. Indestructible - Land cannot be destroyed iii. Unique - All land is unique if for no other reason, all parcels of land are in different locations.
Real Property
land and all things attached to it. Real property is considered to be fixed, immovable, and indestructible. Real property can become personal property by Severance.
Improvements
manmade additions to the land including buildings, fences, paving, pipelines, bridges, and landscaping.
Riparian Rights
rights of a landowner whose land borders on a stream or watercourse to use and enjoy the water which is adjacent to or flows over the owners land provided such use does not injure other adjacent land owners. Property boundary would be the center line of a non-navigable river.
Easements
rights of one to cross over the property of another for some defined purpose
Appurtenances
rights, privileges or improvements permanently attached to the land. Rights would include giving one the right of way or easement to use ones property.
Erosion
the gradual loss of soil due to the operation of currents, tides or winds.
Alluvion
the increase in the area of land due to sediment which is deposited by a river.
Reliction
the increase of the land by the permanent withdrawal or recession of the ocean or a river.
Accretion
the increase or addition of land by the deposit of sand or soil washed up naturally from a river, lake or sea. The gradual and imperceptible addition of land by deposits of soil through natural causes, such as shoreline movement caused by streams or rivers.
Land
the material of the earth that begins at the surface and includes free or occupied space for an indefinite distance upward into the airspace as well as subsurface downward to the center of the earth. Land is not considered scarce.
Accession
the process in which the land changes in size due to Alluvion over time.
Littoral Rights
the rights of a landowner whose land borders a pond, lake or ocean shore-line where the body of water is non-flowing. Littoral rights extend to the mean high watermark.
Avulsion
the sudden tearing away of land, as by earthquake, flood, volcanic action or the sudden change in the course of a stream.
