land
is the earth's surface extending downward to the center of the earth and upward into space( including permanent natural objects such as trees and water)
real estate
land at, above, and below the earth's surface, and all things permanently attached to it, whether natural or artificial
real property
the physical land or real estate plus the interests, benefits, and rights that are associated with its ownership
subsurface rights
the rights to the natural resources lying below the earth's surface.
air rights
the rights to use the open space or vertical plane air above the land
personal property or personalty
all property that does not fit the definition of real property, personal property is movable, also known as chattels
emblements
examples( crops of wheat, corn, vegetables, and fruit) are considered personal property and will be transferred as part of the real property(unless stated otherwise)
severance
the process of changing an item of real estate to personal property by changing its condition ( for example a growing tree is real estate until the owner cuts it down, literally severing it from the real estate).
fixture
an article that was once personal property but has been affixed to the land or a building in such a way that law contrues it to be a part of the real estate.
legal tests of a fixture
intention(did the person who installed the item intend for it to remain permanent)
method of annexation( how permanent is the method of attachment, can it be removed without causing damage to the surrounding property)
adaption to real estate( what is the
trade fixture
an article that is attached to a rented space or building for use in conducting a business, but in the personal property of the tenant
bundle of legal rights
right of possession, right to control the property within the framework of the law, right of enjoyment(to use the property in any legal manner), right of exculsion(to keep others from using the property, right of disposition(to sell, will or otherwise dis
economic characteristics of real estate
1. scarcity 2. improvements 3. permanence of investment 4. area preference (most important)
physical characteristics of real estate
immobility, indestructibility, uniqueness
real estate laws
1. general property laws 2. environmental laws 3. contract law 4. agency law 5. fair housing laws 6. tax laws 7. zoning and land use laws 8. real estate license law
police power
state's inherent authority to adopt regulations necessary to protect the public health, safety and welfare.
comprehensive plan
land use, housing needs of present and future residents, movement of people and goods, community facilities and utilities, energy conservation
Use of privately owned real estate is regulated through:
land-use planning, zoning ordinances, subdivision regulations, building codes, and environmental protection legislation
zoning ordinances
local municipal laws that implement the comprehensive plan, and regulate and control the use of land and structures within designated land-use districts.
enabling acts
are zoning powers that are conferred on municipal governments by the state
validity of ordinances
power be exercised in a reasonable manner, provisions be clear and specific, ordinances be nondiscriminatory, ordinances promotes public health, safety and general welfare under the police power concept, ordinances apply to all property in a similar manne
zoning ordinances
are local municipal laws that implement the comprehensive plan, and regulate and control the use of land and structures within designated land-use districts
zoning affects:
permitted use of the land, lot sizes, types of structures, building heights, setbacks( the minimum distance structures may be built from streets or sidewalks) density(the ratio of land area to structure area or population) protection of natural resources
nonconforming use
a use of property that is permitted to continue after a zoning ordinance prohibiting(stopping) it has been established for the area
conditional use permit
authorizes a property to be used for a special purpose that does not comply with the current zoning
variance
permission obtained from zoning authorities to build a structure or conduct a use that is expressly prohibited by the current zoning laws; an exception from the zoning ordinances
variance categories
dimensional variances- covers physical dimensions such as lot or parcel sizes and setbacks use variances-covers the specific uses of land
subdivision and land development ordinances
regulate lot sizes, setbacks, building heights, open spaces, and the like specifically for subdivisions and PRDs
subdivision plat
a map of the development which are submitted to municipality for approval
impact fees
are monies charged to fund off-site public transportation improvements (the developer must pay these fees to the municipality)
building codes
are ordinances that specify construction standards that must be met when repairing or erecting buildings
building permit
written government permission for the construction, substantial repair, or alteration of a structure.
two types of private land-use controls
deed restrictions and restrictive covenants
deed restrictions
provisions placed in a deed by the owner at the time ownership is conveyed to control future use of the property
restrictive covenants
these are declarations of conditions and restrictions that affect the use of all parcels or land within a specified development or subdivision plat (commonly known as covenants, conditions and restrictions(CC&R))
Interstate Land Sales Full Disclosure Act(25 or more lots)
federal law that regulates the interstate sale of unimproved lots ( law states that seller is required to file a statement of record and register the details or the land with HUD)
steps to minimize legal liability
discovery , disclosure, and documentation
discovery
is to discover the presence of environmental hazards
disclosure
to disclose information that consumers need to make prudent purchasing decisions, even when they do not ask for it
documentation
the process of creating a written documentation of any disclosures (CYA) note: without written documentation there is no proof that proper disclosures have been made
environmental hazards
Asbestos, Carbon Monoxide, Indoor mold, Lead-based paint and other lead hazards, radon gas, formaldehyde, electromagnetic fields, and toxic substances that pollute groundwater and soil are all environmental concerns that can arise in real estate transacti
The most common source of lead poisoning in a home
painting and plumbing
One of the most common sources of carbon monoxide in a house is/are
malfunctioning furnances
The law that contains the broadest liabilities for environmental cleanup is the
Comprehensive Environmental Response, Compensation and Liability Act (CERCLA)
Radon
can be reduced in a building with proper ventilation
metes and bounds
a legal description of a parcel of land that begins at a well-marked point and follows the boundaries, using directions and distances around the tract, back to the place of beginning
methods used to describe real estate
metes and bounds, lot and block (recorded plat), and rectangular (government) survery
lot and block description
uses lot and block numbers referred to in a plat map filed in the recorder of deeds office in the county where the land is located
the description of a lot in a recorded subdivision will include the:
lot and block number of the lot
name of the subdivision plan * country and state in which the subdivision is located
spot survey
a survey that shows the location, size, and shape of buildings located on the lot
datum
is a point, line, or surface from which elevations are measured or indicated by the USGS
acre
43,560 square feet piece of land
allodial system
a system of land ownership in which land is held free and clear or any rent or service due to the government; commonly contrasted to the feudal system. Land is held under the allodial system in the United States
police power
the right of the government to regulate and control the way you use your land
Eminent Domain
The right of a government or municipal quasi-public body to acquire property for public use through a court action called a condemnation, in which the court decides that the use is a public use and determines the compensation to be paid to the owner
Condemnation
A judicial or administrative proceeding to exercise the power of eminent domain, through which a government agency takes private property for public use and compensates the owner
Freehold Estate
An estate in land in which ownership is for an indeterminate length, in contrast to a leasehold estate.
Leasehold estates
A tenant's right to occupy real estate during the term of a lease, generally consider to be a personal property interest.
fee simple
The highest interest in real estate recognized by the law; the holder is entitled to all rights to the property
life estate
An interest in real or personal property that is limited in duration to the lifetime of its owner or some other designated person or persons
remainder interest
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.
Reversionary Right
The remnant of an estate that the grantor holds after granting a life estate to another person.
encumbrance
Anything - such as a mortgage, tax or judgment lien, an easement, a restriction on the use of the land, or an outstanding dower right -that may diminish the value or use and enjoyment of a property
lien
a charge against property that provides security for a debt or obligation of the property owner
easement
A right to use the land of another for a specific purpose, such as for a right of way or utilities; an incorporeal interest in land
appurtenant easement
is annexed to the ownership of one parcel of land to permit the owner of this land to use an adjacent parcel of land. Two adjacent parcels of land, owned by two different parties, are involved.
easement in gross
An easement that benefits a particular individual, not a parcel of property. Involves only a servient estate. A public utility easement is an example.
servient tenement
the parcel over which the easement runs, serves the other property
dominant tenement
The tenement obtaining the benefit of an easement appurtenant. That parcel of land that benefits from an easement across another parcel of property (servient tenement).
easement by condemnation
an easement created by the the government or government agency that has exercised its right under eminent domain
easement by necessity
an easement allowed by law as necessary for the full enjoyment of a parcel or real estate; for example, a right of ingress and egress over a grantor's land.
easement by prescription
an easement acquired by continuous, open, and hostile use of the property for the period of time prescribed by state law
conditions to claim a prescriptive easement
Continuous, Adverse, Notorious, Open, Exclusive
C.A.N.O.E
license
Personal, non-assignable authorization to enter and perform certain acts on another's land.
encroachment
The projection of a structure onto the land of an adjoining owner. A structure or natural object that unlawfully extends into another's property.
spot survey
shows the location of all improvements located on a property and whether they extend over the lot or building lines
riparian rights
The right of a landowner with regard to a stream crossing or adjoining his or her property. refers to rivers, streams, and similar waterways.
littoral rights
owners with littoral rights enjoy unrestricted use of available waters, refers to naviagable lakes, seas and oceans
accretion
A gradual addition to land from natural causes; for example, from gradual action of ocean or river waters.
alluvion/alluvium
Soil that has been deposited by accretion on the shore of a river or body of water and that increases the real property.
avulsion
the sudden removal of soil by an act of nature
estate(tenancy) for years
is a leasehold estate that continues for a definite period of time, may be years, months, weeks or days.
tacking
In adverse possession, this process allows consecutive periods of adverse possession by multiple adverse possessors to be added together to make up the required number of years.
periodic estate or estate(tenancy) from period to period
an interest in leased property that continues from period to period, week to week, month to month, or year to year.
holdover tenancy
an estate from period to period can be created when a tenant with an estate for years remains in possession, or holds over, after the lease term expires.
estate(tenancy) at will
A lease which requires little or no notice of termination. It is used in special circumstances wherein both the lessor and lessee agree that the lease can be terminated by either party. It is of uncertain duration.
estate (tenancy) at sufferance
The lease has expired and the lessee is now possessing the property illegally, having been given proper notice to vacate. It is similar to trespassing except that the lessee, at one time, held a legal ease.
lease
A contract for a less-than-freehold estate or right in real property. Rent is paid for the right of possession in someone else's property.
landlord
lessor ( owner of the real estate)
tenant
lessee
PA tenant law (tenant/landlord)
for the first year of tenancy, the maximum amount of the security deposit cannot exceed the sum equivalent to two months' rent
confession of judgement clause
the tenant authorizes an attorney of record to appear in court in the tenant's name and confess judgement in favor of the landlord. (give up rights)
PA memorandum of lease
a memorandum of lease gives notice of the interest but does not disclose the terms of the lease to the public. Only the names of the parties and a description of the property are included.
option ( for a lease)
a lease may contain a clause that grants the lessee the option or privilege of renewing or extending the lease. The lessee must give notice before a specific date of the intention to exercise the option. Sometimes with a option to buy.
gross lease
The tenant pays a set amount of rent. From this rent, the landloard is required to pay some or all operation expenses.
net lease
The tenant pays all or some of the operating expenses in addition to the rent.
percentage lease
A lease used in commercial leasing. The tenant pays a percent of the net or gross income derived from the use of the property, or the tenant may be paying a flat rate plus a stated percent of the gross or net income.
suit for possession (actual eviction)
When a tenant breaches a lease or improperly retains possession of the premises, the landlord may regain possession through a suit for possession.
constructive eviction
The tenant has the right to abandon the property, which terminates the lease, this occurs when the property is uninhabitable.
warrant of habitability
landlord warrants that the premises shall be fit for habitation, if the tenant proves that the premises are not fit for habitation, the court could rule in their favor to order a reduction in rent or cessation of rental payment.