| Term | Definition |
| 4-1 real estate | includes land plus improvements and appurtenances
-which includes rights, privileges, and fixtures |
| land includes | -surface rights
-air rights
-subsurface rights, including mineral rights |
| improvements | items affixed to the land w/ the intent of being permanent
-ex- house, garage, fence, landscaping, etc. |
| appurtenances | including rights, privileges, and fixtures
-run w/ land
-transfer w/ a deed |
| fixtures | items attached to improvements w/ the intent to become real estate as evidenced by:
-attachment or annexation
-adaption
-agreement |
| fixtures are part of... | the real estate and transfer w/ the property unless the contract states differently
-ex- plumbing or electrical fixtures |
| sellers that remove fixtures... | w/out excluding them in the contract, are in breach of contract |
| free-standing vs. built-in | free-standing= personal property
built-in= fixture |
| exceptions: | emblements (crops) and trade fixtures= personal property
-neither automatically transfer w/ property |
| emblements | annually cultivated crops that belong to the party who rightfully planted the seed |
| trade fixtures | tenant-installed additions to a property for use in a trade or business |
| what can not be a fixture? | land |
| personal property/chattel | -if included, must be listed in a written agreement (often a purchase agreement)
-if not agreed to in writing, the seller may take even if the personal property was listed in the MLS |
| What does personal property/chattel include? | everything that is not real estate
-ex- a freestanding fridge |
| how is personal property transferred? | by a bill of sale |
| 4-2 physical characteristics of land | 1. immobile
2. indestructible
3. unique- each parcel has its own location |
| economic characteristics of land | 1. scarcity, placement of improvements, and area preference
2. disadvantage to owning real estate is that land lacks liquidity |
| 4-3 methods of legal description
Metes and bounds | linear measurements, directions, and compass degrees
-starts and ends at point of beginning (POB)- referenced from a monument
-measure clockwise |
| metes and bounds example | "commencing or starting at the street sign at the corner of Ridge and Ash, go 100 ft. south and then go 100 ft. west" |
| rectangular survey/government survey | uses meridians, townships, ranges, tiers, and sections to locate land parcels |
| ...townships | each township contains 36 sections
-6 miles by 6 miles |
| ...section | 640 acres or 1 mile by 1 mile |
| ...acre | 43,560 square feet |
| recorded plat | lot, block, subdivision
-urban/residential |
| ...steps of recorded plat | 1. create plat map
2. record the map
3. obtain building permits |
| survey | on-site measurement of property lines and position of improvements, easements, and so forth
-can be used to create or verify a legal description
-may reveal encroachments or zoning violation |
| ...a monument | a visible marker used to help establish property BOUNDARIES |
| improvement location certificate | similar to survey but only locates improvements on the lot
- will find encroachments |
| 4-4 types of ownership
freehold estates | indefinite duration of ownership
1. fee simple absolute
2. qualified fee/fee simple defeasible
3. life estate |
| 1. fee simple absolute | last forever and features the maximum rights of ownership |
| 2. qualified fee/fee simple defeasible | lasts "so long as" deed condition is met
-holder of reversionary interest would have the right to try and acquire title if the condition is broken |
| 3. life estate | lasts for duration of life tenant's (owner of the life estate) lifetime
-life tenant has lifetime ownership and use |
| ...upon death of life tenant | the holder of either the reversionary or remainder interest will own a fee simple absolute estate at death
-lease by life tenant to another terminates upon death of life tenant |
| ...pur autre vie | life estate may be based on the life of someone other than the holder of the life estate |
| nonfreehold (leasehold) estates | have a definite duration and may be terminated
1. estate/tenancy for years
2. periodic estate/tenancy
3. estate/tenancy at will
4. estate/tenancy at sufferance |
| lessee holds...
lessor holds... | lessee hold nonfreehold (leasehold) estate
lessor leased fee estate |
| 1. estate/tenancy for years | has predetermined termination date; definite period w/ no notice
-if sold, buyer purchases the property "subject to the lease," and tenant retains posession until the end of the lease term |
| 2. periodic estate/tenancy | continues from period to period (such as month to month) until proper notice given
-renews under same conditions and terms upon payment of rent |
| 3. estate/tenancy at will | continues until terminated by owner or tenant
-tenancy is at owner's consent |
| 4. estate/tenancy at sufferance | occurs when a "holdover tenant" stays beyond termination w/out consent
-if landlord accepts payments, becomes a period tenancy
-it is lowest estate |
| encumbrances/imperfections | clouds on title may impair or lessen owner's rights |
| encumbrance | nonpossessory interest in the lands of another |
| easement | RIGHT TO USE LAND of another for a specific purpose
-transfers w/ the land at closing unless released by the holder
-may or may not be paid for |
| easements must be? | in writing
-NOT REVOCABLE ONCE GIVEN |
| appurtenant easement | dominant tenement and a servient tenement |
| easement in gross | no dominant tenement, only servient
-ex- utility easement |
| easement by necessity | may be granted to a homeowner to avoid landlocked property
-available to private owners, not to government, utility, telephone, or gas companies |
| easement is terminated by? | merger, release, or abandonment |
| lien | claim that attaches to and is binding on property to secure debt repayment |
| property tax/special assessments lien | specific lien
-takes priority over all other liens, even those previously recorded such as a mortgage |
| specific lien | -mechanic's lien
-mortgage lien
-condominium/townhouse association assessments lien |
| general lien | judgment or IRS lien
-which attaches to all real and personal property |
| encroachment | unauthorized use of another person's land
-survey points out or ILC(improvement location certificate) will find
-title insurance or attorney's opinion won't protect (visual inspection) |
| license | REVOCABLE PERMISSION to use the land of another w/out creating an estate in land and may or may not be paid for |
| lis pendens | recorded document that gives constructive notice of a pending lawsuit regarding title |
| 4-5 forms of ownership | an attorney for the buyer best determines the appropriate form of ownership
-licensees should NEVER advise on how to take title |
| sole ownership/estate in severalty | when property is owned solely and separately by one person or one entity |
| partnerships take title in severalty | -general partnership
-limited partnership |
| general partnership | all partners share equal profits and liability |
| limited partnership | -general partner is responsible for liability of investment
-limited partner is responsible for only the amount of his investments
-limited partner's liability equals the amount invested |
| concurrent/multiple ownership | -tenants in common
-joint tenancy
-tenancy by the entirety |
| tenants in common | co-ownership w/ no right of survivorship
-interests passed to heirs or devisees upon death
-if no form of ownership indicated, law presumes tenancy in common |
| ...who is responsible for taxes in tenants in common? | each tenant as an individual or as a group
-may have unequal shares of ownership |
| joint tenants | co-ownership w/ the right of survivorship
-overrides a will
-interests pass to co-owners/cotenant upon death w/out going thru probate |
| ...what are the 4 unities of title in joint tenants? | PITT (required in some states)
possession, interest, time, and title |
| tenancy by the entirety | applies exclusively to married couples in some states |
