What are the two types of property
Personal and Real Propert
What is personal property
Goods and intangible interests (Moveable and unattached to land. Ex. cars, boats, horses)
What is a trade fixture
Articles of tangible personal property that are necessary to a tenant's trade or business.
What is Fructus Industriales
Meaning the fruits of industry. Growing crops, also known as emblements, that are produced annually through labor and industry.
What are the rights in personal property
These include intellectual property (protected by patent or copyright), business reputation, (good will), leases (transfers possession and use with out ownership), and partnership interests.
What is Real Property
Land, improvements ( valuable additions to land such as buildings and infrastructure developement, and real estate.
Fructus Naturales
Permanent plantings such as flowers, grasses, trees and bushes.(real property)
Fixtures
items that were once moveable (personal property) such as fences, trees, buildings that have been affixed to real estate. Once affixed they become REAL property.
What is the 4 part test to determine if a fixture may be removed?
1-Method of attachment
2-Adaptation
3-Agreement
4-Relationship of Parties
What is method of attachment
The permanence with which an object is attached to real property. The more permanent (build-ins) the less likely it may be severed.
What is adaptation
If an object was specially adapted or made to suit a particular or unique feature of a building (book case)
What is agreement in fixture removal
an agreement between parties may permit removal of a fixture, or prevent a dispute about wether an item is or is not a fixture.
What is relationship to parties in fixture removal
Residential renters less likely than commercial renters to be able to sever (compare trade fixtures)
What are the rights in real property
This includes ownership rights in the surface of land, airspace above land, space below the surface (minig rights), any easements (use of land) and use of appurtenant (adjoining) land.
Bundle of legal rights
Phrase that is used to describe the 6 distinct principal intangible legal right of property ownership.
What are the 6 rights in the bundle of rights
1-the right to possess property
2- the right to control property within legal limits
3-the right to enjoy property and use it legally
4-the right to exclude others from property
5-the right to encumber property by lessenings one's right of ownership in an
Do the bundle of rights transfer to the new owner in whole or in part
yes
What are water rights
A property owner's entitlement to use and maintain water for agricultural, recreational, or personal use.
What are the 3 legal doctrines to determine who has the intangible right to use or divert water and how much?
1-Riparian
2-Littoral
3-Prior Appropriation
What is Riparian
reasonable use for those with property bordering moving water
What is Littoral
reasonable use for those with property bordering non-moving water
What is prior appropriation
owner who first diverts water has superior rights to all others
What are the uses of real property
residential, commercial, industrial, agricultural, recreational, specific purpose and public
Public (zoning) and Private (deed restrictions) controls limit...
how property may be used and influence its value.
What is an economic indicator
measurable economic factor that changes bofore the economy starts to follow a particular pattern or trend
what does it mean when said that real estate is heterogeneous
every piece of real estate is unique, both in terms of its location and in terms of the nature and quality of structure, if any, on it.
What are the characteristics of the real estate market
1. Heterogeneous
2. Real estate cannot be moved
3. Over-supply/Lower prices
4. Under supply/ Higher prices
What are the factors that affect real estate supply and demand
1. Demographics
2. Unemployment/income
3. cost/availability of credit
4. cost/availability of labor and materials
5. governmental policies
What are the main demographic determinants
population size and growth. family size as well as age and income also play a role.
All land has what 3 physical characteristics that influence value
1. Immobility
2. indestructibility
3. Uniquenesss
What is Immobility
Describes how property cannot be moved from one geographical location to another.
What is accretion
Natural forces such as water and weather cause land to accumulate or erode over time.
What is indestructibility
States that land cannot be destroyed
What is uniqueness
Also known as heterogeneity and states that every parcel of property is distinct
Land has what 5 non-physical economic characteristics that influence its value
1. Scarcity
2.area preference
3.improvements
4. investment permanence, assemblage
What is scarcity
Economic principal stating that there is a limited supply of land on earth. scarce land tends to have higher value.
What is area preference (situs)
refers to a person's preference for one location over another. The MOST important economic characteristic of land
What is an improvement
additions made to land that are intended to enhance its value
What is investment permanence
describes the performance of an investment in infrastructure improvements.
What is assemblage
describes how combining two or more contiguous parcels of real estate into a single parcel under the same ownership can increase its overall value
What are legal property descriptions
Method of locating real estate that is suffficiently accurate for a a deed, mortgage, or other formal instrument
What are the 3 principal methods of legally describing real property
1. metes and bounds
2. government survey
3. lot, blcok and subdivision
what are metes and bounds
method of legally describing real property, which identifies the outer edges of a parcel by establishing a well marked starting point called a point of beginning (POB) and then describing in which direction and how far the property boundy runs from the PO
What are Metes
measures in inches, feet, yards and sometimes miles and usually require reference to a compass setting.
What are bounds
Can be estabilshed using artificial monuments and natural monuments.
What are compass angles
surveyors define direction through the use of compass angles
What is a government survey
method of surveying land adopted by the united states in 1785 to facilitate the government's sale of large tracts of land as the population rapidly expanded westward. Also known as the Geodetic or rectangular survey.
What are pricipal meridians
series of numbered imagionary lines running from north to south across the united states created by the government for the purpose of surveyiing land.
What are base lines
Series of imagionary lines that run east-west, established by the government, that intersect principal meridians.
What are checks (property)
24 square miles
What are townships
6 square miles within a check
what are sections
640 acres within a township
What are encumbrances
intrest in land held or asserted by someone other than the land owner, which may diminish its value
What is a Lien
encumbrance on a property that functions to garanty payment of debts by using property as collateral
How are liens created
arise from debt, either through agreement, or by operation of law, and from a variety of sources, including mortgages, work on the property, and court orders
What are the 3 basic concepts of satisfying a lien
Priority, satisfaction, and enforcement
What is a priority of a lien
the priority of a lien describes the lien's position in line with other liens, or the order in which a creditor will be paid in the event the property is sold. It is determined by the date it was recorded or attached to the property
Lien priority goes in what order
Tax liens, Mortgages, mechanic's liens, other liens in order they were recorded, and unrecorded liens
What is satisfaction (lien)
Process of removing a lien upon full payment of the underlying debt
What is a quitclaim deed
Evidence in satisfaction of a lien
Lis Pendens
Latin phrase meaning "action pending", which describes the notice of a possible future lien. This date is the date used to prioritize the lien.
what is a special assesment lien
a specific, statutory lien, and usually involuntary, lien filed against properties that will benefit from a proposed public improvement
What is a tax lien
general, statutory, and involuntary lien imposed for non-payment of federal estate taxes, federal income taxes, or payroll taxes
What is a mortgage
a specific loan secured by a voluntary lien on real property, where a property owner enters into a contract to borrow money and voluntarily agrees to extinguish his rights in his real property in favor of the lendor if he fails to pay the debt according t
What is a vendor's lien
specific, equitable, involuntary lien filed by a seller (vendor), against the property sold, in the amount fo any unpaid purchase price.
Mechanics lien
specific, statutory, involuntary lien against real property by material men, or mechanics(laborers), for the value of the materials or labor for improvements, repairs, or maintenance of real property.
Judgement Lien
general, equitable, involuntary lien that attached to a debtor's real and personal property. Usually only in the county the judgement was rendered.
attachment lien
Judicial action causeing a defendant's real and personal property to be seized by a court and held as collateral pending a lawsuit.
What is an Easement
Limited right to use the land of another, which may be voluntary or involuntarily conveyed. An encumbrance on land.
easements appurtenant
limited right of one landowner to use the adjoining land of another for a specific purpose
dominant estate
land owned by a person who has the right to use the land of another, or the person who benefits from the easement
servient estate
land that is subject to use (the "burden") by adjoining land
easements in gross
limited right of one person to use the land of another. "Personal easements in gross" are property rights held by specific persons
what is an express grant
express easements must be conveyed in writing, usually through a deed, with a description of the easement and the subject property that is signed , acknowledged, and recorded.
what is an express reservation
created by a landowner selliing his property but retaining an easement (by "reservation") in the property
what is necessity
an easement may arise by necessity only where a particular use is strictly necessary, and despite any express grant or reservation.
what is an implication
an easement may arise by implication from the acts or conduct of the parties. Does not require a writing.
What is a presecription
a prescriptive easement is a right acquired by an adverse user, or user that is using the land of another without permissionand in conflict with the owner's interests.
what is an agreement
created by written consent
what is condemnation
arises by operation of law through the governments power of eminent domain
What is encroachment
unauthorized physical intrusion that encumbers the land of another.
what are estates in land
describes the degree, quantity, nature, and extent of an ownership interest in real property
what are the 4 broad categories of estates
1-freehold
2-future
3-non-freehold (leasehold)
4-statutory
what are the 2 types of freehold estates
1-fee
2-life
what is a freehold estate
estate (ownership interest)in land in which one has both possession and (indefinite) ownership rights in real property.
what is seisin
the possesssion and ownership of a freehold estate
what is a fee estate
highest and most unrestricted ownership interest in land, includes the fee simple estate (exists indefinately; transferred without restrictions) and the qualified fee/defeasible estate
what is a life estate
freehold etate conveyed to a person for the duration of someones life. upon expiration of a life estate an interest transfers to another person
what is a life tenant
holder of a life estate that exists for the durationof his own life. cannot commit waste. must maintain the premises for any future interest and pay any tax or mortgage fees and may NOT encumber the property beyond the duration of his life
What is Pur Autre Vie
meaning "for another's life" commonly used to identify a life estate measured by the duration of the life of a third party rather than by the life of the life tenant.
what is a future estate
estate (ownership interest) that is certain to arise in the future (present ownership without present possession)
What is a remainder estate
estate that automatically arises after an existing estate terminates
What is a reversion estate
remaining estate that returns, or reverts, to the greater (seller) after a grantor has conveyed a lesser estate (less than a fee interest)to someone else (grantee)