RE specializations
- knowledge of property transfer
- knowledge of market conditions
- knowledge of how to market real estate
The term real estate includes all except:
Fructus industrial
The system of ownership of real property in US is:
Allodial
Which BET describes a fixture?
It was one time movable
Real property can be converted into personal property by:
Severance
Which would NOT be an appurtenance?
A potted plant
Extreme wind and 15 foot waves washed away half of the water frontage og John's bay front property. This violent tearing away of the soil is know as
Avulsion
A river has deposited soil that had been carried downstream. The buildup soil on the bank is called:
accretion
Joint tenancy:
Needs the four unities to be created
Which is NOR an economic characteristic if real estate:
Indestructibility
Joan and Suzie were co-owners in a property. They took tittle at the same time, had equal interest, had the same deed, and had and undivided interest. Joan dies. What will happen to the property now?
the property is owned by Suzie in severalty.
The right of an owner to own to the average high water mark is:
Littoral
Which is not a test for determining if something is a fixture?
Situs
Joe rents a building where he has and ice cream store. He wants to put in an ice cream freezer that will hold 28 varieties of ice cream. He will need to affix the freezer in order to obtain water and electricity to power the freezer. Can he do this?
Yes, He is an commercial tenant and this is a trade fixture.
The bundle of rights includes all EXEPT
The right to abandon
What is the highest and best ownership?
Fee Simple
The ownership presumed by law unless otherwise stated is
Tenancy in common
How many days does a buyer have to cancel a purchase contract of a cooperative?
15
A property owner awns a condominium. Her interest in the common grounds around her unit are owned by her in what manner?
Tenants in common
Trees and perennial bushes are considered to be:
Fructus naturales
Tom and Elaine are married couple. They own a house together. Will they still own the house together if they get a divorce?
Yes, but they will own the house as tenants in common
The purpose of _________ is to give statutory recognition to the cooperative form of ownership of real property. It shall not be construed as repealing or amending any law in effect, except any law in conflict herewith, and any such conflicting laws shall
Florida Cooperative Act
The purpose of the ____is to give statutory recognition to the condominium from of ownership of real property, and to establish procedures for the creation, sale and operation of condominiums.
Florida Condominium Act
Three of the purposes of the _____ are to: (1) Give statutory recognition to real property timeshare plans and personal property timeshare plans in this state. (2) Establish procedures to the creation, sale, exchange, promotion, and operation of timeshare
The Florida Vacation Plan and Timesharing Act
If the disclosure summary for a homeowner's association is not provided to the buyer prior to signing the contract for sale, the status of the contract is:
Voidable at the buyer's option prior to closing
The Homeowner's Association disclosure summary language should be:
Contained in the purchase and sale agreement in conspicuous type
There are three physical characteristics of land:
1. IMMOBILITY: real estate cannot be moved from place to place.
2. INDESTRUCTIBLE: real estate cannot be destroyed; it is permanent.
3. NONHOMOGENEOUS: no two pieces of real estate are the same; each has its own characteristic
There are five economic characteristics of real estate. The acronym is D.U.S.T.S.
1. Demand: How much do people want this piece of property in this location, price, school district, etc.?
2. Utility or Usefulness: How useful is it? The real estate has certain characteristics that are useful or appropriate to certain buyers such as a th
Water rights include:
RIPARIAN: river / streams (water is moving)
- navigable OWNS to Water edge
- non navigable OWNT to Center of the stream, midpoint
LITORAL: Oceans, Seas, Lakes (water is NOT moving)
- navigable, there fore PUBLIC PROPERTY, ovned by state. Owner enjoy liter
Accretion:
is the increase of land created by deposits of soil by the natural action of water.
Erosion
is the decrease of land by the gradual wearing away that is caused by flowing water.
Avulsion
is the "sudden" loss of land by an act of nature such a hurricane or typhoon (like the loss of beach).
Reliction
is an increase in land due to the receding of water (such as the increase of land at the Great Salt Lake).
Alluvial plain:
is the delta area where the soil deposits from the river. The soil deposited is called Alluvio
CROPS: Emblements or fructus industriales are
Annual crops such as wheat, corn and vegetables. Require cultivation. Considered personal property
Fructus naturales
Trees, perennial, bushes, considered real property. DO not require cultivation Real property
Annexation:
change PERSONAL property to REAL property.
An example of this is when a tree is planted; the tree is annexed to the property so it becomes part of the real property
Severance:
changes the REAL property to PERSONA property. An example of this is when the tree is cut down and cut into firewood. The logs from the tree are considered personal property
Fixture
is defined as something that once was personal property but has been affixed or installed to real property. Therefore it becomes real property.
When an item (personal property) becomes "affixed" or attached to real property, the personal property becomes
Appurtenance
is a right, privilege, or improvement that belongs to and passes with the transfer of property.
ESTATE in LAND
Is degree and quality of ownership one hold the land.
History: feudal / allodial
ESTATE = STATUS
There are TWO Types of estates
FREEHOLD = ownership, this term indicates ownership, and an indefinite period of time OR
LEASEHOLD= rent, this term indicates renting or leasing for a fixed term
Free hold interest (types)
- FEE simple ABSOLUTE
- Fee simple DEFESABLE
Freehold estate
- Fee simple estate
- Life estate
Fee simple estate
- fee simple Absolute
- fee simple Defeasible
Fee Simple Absolute
Nor conditioned by stipulated or restricted users.
This form of ownership is always clearly stated on the transfer papers (the deed) to the property. It can be called any or all of the three words, but it means the HIGHEST and BEST form of ownership.
It m
P.E.T.E
stands for the government limitations on private ownership. It stands for p
Police Power
Eminent domain
Taxation
Escheat.
Fee simple defeasible
- Determinable:
deed have limitations, if restriction violated, estate automatically revert to the grantor or heirs
- Condition Subsequent:
if violated, previous owner may reposes the property But reversion is not automatic, the grantor must re-take posse
FREEHOLD: Fee Simple Defeasible
This is sometimes called a "conditional fee" because it is based on an occurrence or a non-occurrence of a specified event. It states that it is an estate "on the condition that..." and an estate that provides the "right to re-enter..."
Example: I will se
LIFE ESTATE
type of Freehold all rights except inherit.
Life estate - freehold - based on person LIFE, upon death two situations:
1. estate in REVERSION: return to grantor
2.estate in REMAINDER: grantor name 3rd party REMAINDERMANN, to which property passes.
An Estate in REVESION
The grantor (owner of the estate) gives his interest to another party called a life tenant. The life tenant is the person, upon whose life the property relies. At the death of the life tenant, the property goes back to the grantor or his heirs. In other w
An Estate in REMAINDER
The grantor (original owner) gives a life tenant possession of the property during the lifetime of the life tenant. The grantor names a third party (called the Remainderman) at the time the property possession is given. At the death of the life tenant, th
Homestead
is a legal life estate created under Florida law. Under a Homestead life estate, the homeowner's principal residence is protected from certain creditors but is not protected from property taxes or from a mortgage for purchase or cost of improvements.
The
Owner ship is held by
1. Severalty
2. Concurrent owner (co-owners)
- Tenancy in common
- Joint tenancy with the right of survivorship
- Tenancy by the entireties
Severalty
One person, also sole ownership or estate in severalty
Means to take title to real estate alone, as one person. The root the word is SEVER which means to cut off everyone else's interests. This is sometimes referred to as a "sole ownership" or an "estate
Concurrent Owners
More than one person can take title to the property at one time. This is called concurrent ownership. Tenancy in common, joint tenancy and tenancy by the entireties are all forms of concurrent ownership
Tenants in Common
- An individual interest in group ownership. It is presumed by law unless otherwise stated.
- Interests may be unequal or equal. One person can own a larger share of the property than another.
- There is an undivided interest in the property. All the owne
Joint Tenancy
called a Unity of Ownership, several things must happen before this can take place. The acronym used to help remember this is TTIP.
- Time: all owners must take title at the same time
- Title: one deed transferred property from the grantor (seller) to the
How can joint tenancy be terminated?
- One partner sells his/her interest in the property. If there are three joint tenants and one sells his interest to a fourth party, the fourth party becomes a tenant in common with the remaining two joint tenants.
- Partition Law suit: the court can diss
Tenancy by the entireties
is an ownership by marriage only- Owners must be husband and wife.
- There is a right of survivorship.
- Each has an equal and undivided interest.
- The property is inheritable by the other partner upon death
How can Tenancy by the Entireties be terminated?
- Death of either spouse-survivor becomes owner in severalty
- Divorce (parties then become tenants in common)
- Mutual agreement,to sell the property
- Foreclosure
Leasehods are
Estates less than Freehold. A tenant has to have an interest in a property in order to occupy another person's property.
Cooperative
is a different form of ownership than a condominium or residential home in that the entire property is owned by a corporation. To obtain a unit within the building, the buyer buys stock in the corporation. The stock ownership carries with it the right of
Condominium
is always a unit within a building. Condos can be the garden type or villas (single story); other times they are the townhouse type (more than one story.)
Each homeowner in a condominium owns the property in fee simple. Each is given a deed which contains
Homogeneity and heterogeneity
are concepts relating to the uniformity in a substance. A material that is homogeneous is uniform in composition or character; one that is heterogeneous is distinctly nonuniform in one of these qualities
If owning property, one has the right to:
posses, use , transfer, encumber, exclude
Tangible versus intangible property.
Real and personal property may be furthercategorized as tangible or intangible property. Tangible property is physical,visible, and material ( all types of real estate boat, car ...)Intangible property is abstract, having no physical existencein itself, o
The right to encumber
the property essentially means the right to mortgage theproperty as collateral for debt. There may be restrictions to this right, such as aspouse's right to limit the degree to which a homestead may be mortgaged
Doctrine of Prior Appropriation.
Since water is a resource necessary forsurvival, some states -- particularly those where water is scarce -- have taken thelegal position that the state owns and controls all bodies of water. Called theDoctrine of Prior Appropriation, this position require
What waterrights does an owner of a property that contains or adjoins a body of water enjoy?
whether the state controls the water�whether the water is moving�whether the water is navigable
Littoral rights.
Littoral rights concern properties abutting bodies of water thatare not moving, such as lakes and seas. Owners of properties abutting a navigable,non-moving body of water enjoy the littoral right of use, but do not own the waternor the land beneath the wa
Riparian rights
Riparian rights concern properties abutting moving water suchas streams and rivers. If a property abuts a stream or river, the owner's riparianrights are determined by whether the water is navigable or not navigable. If theproperty abuts a non-navigable s
Severance & Affxing
Severance is the conversion of real property to personal property by detaching itfrom the real estate, such as by cutting down a tree, detaching a door from a shed,or removing an antenna from a roof. Affixing, or attachment, is the act ofconverting person
An interest in real estate is ownership of any combination of the bundle of rights toreal property, including the rights to.
posses - use -transfer -encumber - exclude
Undivided interest
An undivided interest is an owner's interest in a property inwhich two or more parties share ownership.
Land in commun undesranding
air, surface, subsurface, natural attachments
Real Estate in commun understanding
land + man made attachments
Property is not only item that is owned, but also set of right enjoyed by the owner, bundle of rights
Posses - Use - Transfer - Encumber - Exclude
Real Property
ownership of real estate and the bundle of the rights
Personal Property
ownership of anything that is not th RE
Items of personal pretty are called
Chattels or Personality
Tangible property
Is physical, all RE
Intangible property
is abstract
Littoral rights
lakes and seas
Riparian rights
stream or river
Emblements
growing plants, including agricultural crops, may be rather real property or personal property. Plants and crops growing naturally with out anyone's labor = real property.
Planst requiring labor = personal property
Conversion SEVERANCE
conversion real property to personal
Conversion AFFIXING
conversion personal property to real
Interest in real estate
principally distinguishes by whether they including possesion.
If interest holder enjoy right os possession, is considered to have "Estate in land".
If does not have the right to posses, the interest is "Encumbrance"
If goverment entity = public int�r�ts
Estate in land
is an interest that include right of possession.
Estate in land is FREEHOLD or LEASEHOLD. Both estate are referred ash tenancies.
Freehold estate
duration of owners right can't be determined ( life time, generations, owner life teme...)
Leasehold
distinguished by specific duration, as represented by leaseholder's right are temporary
Freehold / FEE SIMPLE ESTATES
highest form of ownership, include complete bundle of rights, tenancy is unlimited. The see is simple interest is also called the - fee interest - owner is called fee tenant.
Two forms of fee simple estate ABSOLUTE and DEFEASIBLE
Fee Simple / ABSOLUTE
the fee simple absolute estate is a perpetual estate that is NOT CONDITIONED BY STIPULATED OR RESTRICTED USES. It may be freely passes on to heirs.
Fee Simple / DEFEASIBLE
estate is perpetual, provided the usage CONFORMS TO STATED CONDITIONS. Two types: DETERMINABLE and CONDITION SUBSEQUENT
Defeasible / DETERMINABLE
deed state usage limitations, if restriction are violated , estate automatically reverts to the grantor or heirs
Defeasible / CONDITION SUBSEQUENT
if any condition violated, the previous owner may repossess the property. However, reversion if the estate is not automatic: the grantor must re-take physical possession within a certain time frame.
LIFE ESTATE
Is a freehold estate, that is limited in DURATION TO THE LIFE of the owner or other named person. Upon death the estate passes to the ORIGINAL OWNER. The holder of a life estate is called the LIFE TENANT.
Remainder & Remainderman
If life estate names a their party to receive the title upon termination of the life estate, the party enjoys a future interest called REMAINDER.
Life estate / Reversion
If no remainder estate is established, the estate reverts to the original owner or they series. In this situation, the original owner retains a reversionary or estate.
Life estate types
Conventional and Legal
Life estate CONVENTIONAL
Is created by grant from fee simple property owner to the grantee. Following the termination of the estate, right pass to remaindermann or revers to previous owner.
Two type ORDINARY and PUR AUTRE VIE
ORDINARY life estate
ends with the death of the life estate owner and may pass back to original owners or they heirs (reversion) or to a named third party (remainder)
PUR AUTRE VIE life estate
endure the life time a third person after which property passes from the tenant holder to the original grantor (reversion) to a third party (remaindermann)
Ex: Ivonne grant life estate to Ryan, to endure over lifetime of Ivonne's husband Steve. Upon Steve
LEGAL LIFE ESTATE
crated by STATE LAW as opposed to being created by a property owners's agreement,vary form state to state. Protecting surviving family members rights upon death.
Major Forms:
1. Homestad
2. Dower and Courtesy
3. Elective share
HOMESTEAD
One's principal residence. Homestead laws protect family members against losing their homes to general creditors attempting to collect on debts.
DOWER and COURTESY
Is a wife's life estate interest in the husband's property.When the husband dies, the wife can make a claim to property. When husband dies, the wife can make a claim to portions of the dependent's property property.Courtesy is the identical right enjoyed
ELECTIVE SHARE
Is state level statute enabling a surviving spouse to make a minimum claim to the deceased spouse's real and personal property in place of the provisions for such property in the dependent's will.
Ex: If a husband's will excludes the wife from any propert
Leasehold estates
- estate for years
- estate from period to period
- estate at will
- estate as sufferance (occupy premises with out consent of landlord)
RE Ownership
- Sole ownership
- Co- ownership
- Estates in Trust
- Cooperatives
- Time - Shares
Sole Ownership
If a single party owns the fee of life estate, the ownership is TENANCY IN SEVERALTY.
Synonymous are:
- sole ownership
- ownership in severalty
- estate in severalty
When would be considered sole owner is a husbands wife, state laws may require homiest, d
Co-ownership
- tenancy in common
- joint tenancy
- tenancy by the entireties
- community property
-tenancy in partnership
Tenancy in common
also know "estate in common", is the most common form of co-ownership when the owners are not married. The defining characteristics are:
- two or more owners
- identical rights
- electable ownership shares (40%, 35%, 50%)
- no survivorship (deceased estat
Joint tenancy
Defining characteristics and requirements:
- UNITY OF OWNERSHIP: joint tenants together hold a single title to the property
- EQUAL OWNERSHIP: if four tenats each 25%, if ten each 10%
-TRANSFER OF INTEREST: joint tenant may transfer his or her interest in
Creation of joint tenancy
All owners must acquire the property at the same time, used same deed, acquire equal interest, and share in equal rights of possession, refers as "four unities:
1. UNITY OF TIME
2. UNITY OF TITLE
3. UNITY OF INTEREST
4. UNITY OF POSSESION
Tenancy by the entireties
Form of ownership reserved exclusively for husband and wife. It features:
- Survivorship
- Equal, undivided interest: each suppose owns the estate as if there was only one owner.
- No for closure for individual debts: subject for closure only for jointly
Community property
this ownership define property rights of legal spouses before, during and after their marriage,as well as after the death of either spouse
Tenancy in partnership
ownership held by business partners, as provided by the UNIFORM PARTNERSHIP ACT
Estates in trust
In estate in trust, a fee owner -- the GRANTOR or TRUSTOR -- transfer legal title to a fiduciary -- the TRUSTEE-- who holds and manages the estate for the benefit of another party, the BENEFICIARY. the trust ma be created by a dee, will or trust agreement
Living trust
Allow TRUSTOR, "during his lifetime", to convey title to a trustee for the benefit of a third party. May involve persona and reap property.
Testamentary trust
same as living trust, except that it takes effects only when truster DIES. May involve persona and reap property.
Land trust
Allow TRUSTOR to convey the fee estate to the trustee and to "name him self the beneficiary". Applies on tp REAL property. The agreement, or DEED IN TRUSTM grant the beneficiary the rights. Public records do not identify the beneficiary, he owns and enjoy
Condominiums
Is hybrid form of ownership of multi-residential or commercial properties. It combined ownership of FEE SIMPLE interest in the "AIRSPACE" within a unit with ownership of an undivided share, as a tenant a TENAT IN COMMUN, of the entire property's "common e
Cooperatives
One owns SHARES in non profit corporation or cooperative association. Along with stock, shareholder acquires a PROPRIETARY LEASE to occupy one of the apartments units.
Time shares
Ownership is fee or leasehold interest in property whose owner or tenants agree to use the property on a periodic, non overlapping basis.