NC Real Estate Chapter 2

Bundle of Legal Rights

Rights received with real property. DEEPC disposition,exclusion, enjoyment, possession, control

Livery of Seisin

Process of handing over ownership from the seller to the buyer. Handed bundle of sticks to symbolize transfer of property and everything connected to it.

Appurtenance

The rights that go with ownership of land. Includes subsurface rights, water rights, and air rights.

Subsurface Rights

The right to use the space below the land and extract natural resources within.

Air Rights

The right to use the space above the land.

Riparian Rights

The unrestricted right to use the water, provided such use does not harm owners upstream or downstream by interrupting or altering the flow of the water or by contaminating it. (Lakes, rivers, and streams)

Littoral Rights

Land owners bordering oceans or large navigable lakes that have a tide. Have unrestricted rights to the water but own the land adjacent to the water only up to the mean high-water mark.

Accretion

Land created gradually by soil deposited by water.

Reliction

The gradual disappearance of water that creates more land.

Erosion

A gradual wearing away of land caused by flowing water or natural forces.

Avulsion

A rapid form of erosion.

Lateral Support

The act of having the adjacent property support the natural boundaries of the land.

Subjacent Support

Company buys subsurface rights must take proper action to support the natural boundaries of the adjacent land.

Manufactured Home

HUD standards. Personal property. DMV. Becomes real property when the moving hitch, wheels and axles removed then attached to a solid foundation on land owned by the owner of the manufactured home. Affidavit of work confirmed becomes real property.

Modular Home

Homes constructed off site according to state building codes. Once affixed to a permanent foundation it is considered real property. These homes are attached with a label certifying compliance.

Plants

Fructus Naturales-Trees, perennial bushes, and grass.
Fructus Industriales-Annual crops like wheat, corn, vegtables, and fruit. All considered personal property.

Annexation

Permanent improvements to the land.

Fixture

Item once personal property, affixed to land or building.

The Total Circumstances Test

Four part test that helps to determine if an item is a fixture.

IRMA

Intention-Most important test on whether the item was intended to remain permanent or be removed.
Relationship-Depending on whether the person is a tenant or the owner determines validity of the item as a fixture.
Method-How permanent is the item and can

Trade Fixture

An item fixed to the property by a tenant to conduct business. It is considered personal property of the tenant even though it is fixed to the property.

Agricultural Fixtures

Improvements made by a tenant farmer. Considered real property at end of lease unless otherwise negotiated.

Uniform Commercial Code(UCC) on Fixtures

Items bought on credit or loan and attached to a house are still considered personal property of loan originator. Once the loan has been paid it becomes real property.

Estate

Degree, quantity, nature, and extent of interest one has in real property.

Two Major Classes of Estate in Land

Freehold-those involving rights of ownership.
Nonfreehold-those involving tenants' rights of possession.

Freehold Estate

Estates of indeterminable length of ownership, such as existing for a lifetime.

Fee Simple Estate

Complete ownership, passes to heirs upon death.

Defeasible Fee Simple

An estate may be lost on the occurrence or nonoccurrence of a specified event. Reversionary clause.

Fee Simple Subject to a Condition Subsequent

Estate requires a nonoccurance of some specified event. Reversion Clause.

Fee Simple Determinable

Estate requires an action continue. Reversion Clause

Life Estate

Based on the lifetime of the owner.

Life Estate Pur Autre Vie

Based on the life of another. Reversion clause or named remainderman.

Remainder Interest

Created to receive estate once the lifetime of the grantee has expired.

Reversionary Interest

Once the life of the grantee has expired the estate comes back to the grantor, if a remainderman is not named.

Life Tenant

A person in possession of a life estate. Right to estovers, but no waste.

Ownership in Severalty

When the title is invested with a single entity. One person, LLC, or corporation. Sole owner.

Tenancy in Common

Real estate owned by two or more people usually of equal shares. Can sell, convey, mortgage or transfer that interest through the right of partition. Deceased owners interest pass to heir.

Joint Tenancy

Real estate owned by two or more people usually required to be equal shares. Upon the death of one tenant shares pass to remaining tenants equally. If one tenant wishes to sell to an outside party they become a tenant in common to the others.

Tenancy by Entirety

Must be husband and wife. Each has an equal interest in the property. Upon death of one spouse full ownership is granted to the surviving spouse without a probate hearing. No right to partition.

Common Interest Community Ownership

Same rules of ownership of a parcel of real estate, but dues paid as a group to fund common areas.

Condominium Ownership

Holds a fee simple absolute to a unit (air space) in a multi-unit building. Shares interest in all common areas associated with the condo complex. Paint to Paint.

Cooperative Ownership

Usually owned by a corporation where units are rented out under a proprietary lease. Stock in the company is purchased by he owner who becomes a shareholder in the company.

Townhouse Ownership

Two or three houses connected by party walls. Individually owned with rights to land underneath. Dues paid to common areas.

Time-share Ownership

Right to occupy real property for a short period of time throughout the year .

Planned Unit Development

Different zoning laws than regular subdivisions. Buildings may be clustered together, leaving more room for open spaces and recreational areas.