| A | B |
|---|
| Rights | claims that the government is obligated to enforce; derived from the constitution; cannot be revoked without just compensation; enduring |
| Right vs. Privilege | a privilege can be taken away |
| Property Rights (Bundle) | use, possess, dispose |
| Real Property | rights in land and its permanent structures (above, on, and below ground) |
| Personal Property | Personal & household goods, intellectual property, music, etc. |
| Fixture | an object that formerly was personal property but has been converted to real property |
| Rules for determining when something becomes a fixture: | 1. Manner of attachment 2. character of the article & manner of adaptation 3. intention of the parties (dominant rule) 4. Relation of the parties |
| Relation of the parties (variant of rule of intention) | Trade fixtures, fixtures on agricultural land, items installed by tenant are all personal property |
| Estates | interests in real property that include possession |
| Types of ownership estate (freehold or titled interests) | Fee simple absolute, fee simple qualified, conventional (ordinary) life-estates |
| Types of fee simple qualified estates | fee simple determinable & fee simple conditional |
| fee simple absolute | most complete bundle of rights possible with real property; still subject to private and public restrictions |
| fee simple qualified | subject to a condition or trigger event. Includes fee simple determinable and fee simple conditional |
| Fee simple determinable | fee automatically reverts to grantor to grantor's heirs (reverter) upon violation of specific event. Note: the grantor has a future interest in the property referred to as the possibility of reversion |
| Possibility of reversion | Grantor of a fee simple determinable has a future interest in the property |
| Fee simple conditional | Grantor must initiate a specific action to terminate upon violation of a specific event. Note: grantor has a future interest in the property referred to as the Power of Termination |
| Power of Termination | grantor of a fee simple conditional has a future interest in the property |
| Conventional (Ordinary) Life Estates | non-inheritable interest ends with death. Can be created through private agreement, law, or marriage |
| Remainder | Interest given to non-grantor after the termination of a life estate or another non-fee simple estate (Can be vested or contingent) |
| Vested Remainder | A->B(for life)->C. Common with late marriages |
| Contingent Remainder | A->B->C(If married) Else -> D. C&D MAY have interest |
| Reversion | interest given back to grantor after the termination of a life estate or another non-fee simple estate. A->B(for life)->A or A's heirs |
| Legal Life Estate | Created by the action of law. After the death of a spouse, the other receives life estate while the children receive vested remained interests |
| Leasehold (Nonownership or non free-hold) estates | Temporary conveyance of the rights of exclusion, use and enjoyment, but not the right of disposition)Possessory interests, and are therefore estates. 1. Limited in time 2. No right to dispose 3. Not titled interests. |
| Types of Leases | tenancy for years, periodic tenancy, tenancy at will, tenancy at sufferance |
| Tenancy for Years (Estate for years) | Specific period of time, you can renew entirely new lease, must be in writing to be enforceable |
| Periodic Tenancy | specific period of time for payment period, but no defined total term, usually an oral arrangement, Think of as a lease that automatically renews until one party gives notice |
| Tenancy at Will | Had the right to be there at one time, may be extended for a few days) No written lease required |
| Tenancy at Sufferance | Beyond the lease term, the tenant stays without written or oral consent from the landlord, depending on the state, you may have some "squatters rights" |
| 3 Classes of nonpossessory interests: | easements, restrictive convenants, and liens |
| Easement | right (not just permission) to use land for a specific and limited purpose. |
| Easement Appurtenant | The right of use a (dominant) parcel of land "enjoys" over an adjacent (servient) parcel: runs with the land |
| Affirmative Easement Appurtenant | gives the dominant parcel some intrusive use of the servient parcel |
| Negative Easement Appurtenant | allows no intrusion onto servient parcel. Ex: sunlight or scenic easement |
| Easement in Gross | the right to use land for a specific, limited purpose unrelated to any adjacent parcel. Several servient parcels, but no dominant parcel. Common with telephone companies, also called commercial easements |
| Termination of Easements | 1. Agreement, by both parties 2. Abandonment or lack of us |
| Implied Easement | Use of land known to the owner but not specifically allowed |
| License | Permission to use another's land for a specific and limited purpose. Revocable by grantor, and does not run with the land |
| Restrictive Convenants (Deed Restrictions) | impose limits on the uses of land. |
| Lien | a claim one person has on the property of another as either security for a debt or fulfillment of some monetary charge or obligation |
| General Lien | Arise from event unrelated to the property. Ex: court awards damages |
| Specific Lien | created to secure debts that arise from real estate ownership |
| Property Tax and Property Assessment Lien | Local government services are a benefit to property owners. Automatically superior to other liens. Property tax default can lead to a municipal lien on your house, or even a force sale |
| Mortgage Lien | Created when property is pledged as security for a loan, lender has a lien on property. If you don't make your payments, then the lender can move to foreclose on your property. This is the most common encumbrance on an owner's title |
| Mechanics' Lien | In the event of non-payment, the work or material supplier has a specific statutory (legal) claim for payment against property. |
| waiver | neglect of enforcement of restrictive covenant |
| indirect co-ownership through a single entity | multiple persons can form a business organization that can acquire real estate. The individuals own the company and the company owns the property (e.g., limited partnerships, limited liability company, S corporation, C corporation, Real Estate Investment Trust (REIT)). |
| Types of direct co-ownership | Tenancy in common, joint tenancy, tenancy by the entirety, condominium, timeshare |
| Tenancy in common | Full rights of disposition with no right of survivorship. Equal rights of use and possession. Equally liable |
| Joint Tenancy | Equal rights of use and possession, right of survivorship, reverts to a tenancy in common if one owner sells. |
| Straw Man | Needed to transfer joint tenancies between people. H&E->B->J&E. H has been removed. B is the Straw man |
| Tenancy by the Entirety | Joint tenancy between husband and wife |
| Condominium | the owner holds a fee simple interest as an individual owner to a specific space. The owner is a tenant in common in the community elements (building, halls, etc.) |
| Cooperative | Not a form of direct co-ownership, but rather is a proprietary corporation. Much less popular than condos as everyone incurs on mortgage debt risk |
| Dower/curtesy | Gives a spouse a 1/3 life estate in all of the real property |
| Elective Share | Gives the spouse the OPTION of a 1/3 of both real and personal property |
| Community Property | Automatically gives a spouse all property acquired after marriage |
| Separate Property | Property acquired by each spouse before marriage |
| Timeshare | Interests are not simultaneous, and is usually purchased for a number of years. |
