AEB4123 Exam 3

4 perspectives of property

economic, personal, environmental, societal

laws create _______in property

ownership

Without laws providing ownership rights, as citizens of the U.S., we would not have _____ rights

property

Our property rights exist because…

governments provide and enforce

Examples of regions without property rights

Former Soviet Union, Cuba

3 elements necessary for property to exist

land, owners of that land, government protection of our property rights

*Property can be best defined as

a bundle of rights (each stick in the bundle represents a separate right)

*Property can also be best defined as

a number of seperate private and public rights

T/F: Property right can only be applied separately

False, it can also be combined

Examples of private property rights

right to sell, grant an easement, mortgage, or lease

Property: What is the point of public rights?

some rights only belong to the public

Examples of public property rights

Eminent Domain, Right to Tax, Right to Forfeiture, Escheat

Escheat

unclaimed or abandoned property transfer to state ownership

Eminent Domain

Government’s right to take property

What are the two major types of property?

real and personal

Real Property

is not capable of being moved. consists of land or whatever is erected or growing on the land

What is the point of real property?

if it is attached to the land, its real property

Examples of real property

buildings and machinery attached to the land, trees, the land itself

Personal property

all property that’s not real estate. property that is moveable

Example of personal property

money, stocks, livestock, crops severed from the land

Once personal property becomes fixed to the land it is ____

real property

T/F: It is easy to distinguish between real and personal property

False

Property: If you sell an orange grove and agree to pick the oranges before it sells, those oranges are…

your personal property; however, you are not allowed to pick after it is sold because the oranges are real property

T/F: Oranges attached to a tree and boxed oranges are both real property

False, boxed oranges are personal property

Personal property is all property that is not…

real estate,

T/F: Personal property is generally moveable

True

Sale and lease agreements should specify which items of personal property are to remain ________

with the real property

*Property: Fructus Naturales

only produced by the forces of nature

Examples of Fructus Naturales

Crops such as trees, bushes, or grass

What property does fructus naturales fall under

real property/part of the land until severed, then it becomes personal

*Fructus Industriales

produced by the labor of the farmer or rancher, it is harvested periodically (constant planting and harvesting)

Example of fructus industriales

crops resulting from annual planting such as corn, wheat, and vegetables

What property does fructus industriales fall under

personal, not part of the property/land

History of land ownership began in the

9th century

History of land ownership: Feudal concept of property rights

each nobleman owned their property. Subject to either: payment of duties or providing men for armies to the next higher level

What are the terms from the feudal era that still exist today? (5)

property, fee, estate, interest, right

Estate

ownership in land

What did estate originally mean?

“royal property”

ownership rights are measured by a…

specified period of time

T/F: Estate are distinguished from non-possessory rights

True

Example of estate distinguished from non-possessory rights. Explain how it works.

easement/a right of way

Non-possessory: entitled to specific use, path thru someone else's land to yours

What are the two types of estates in land

Leasehold and Freehold

Leasehold

lasts for a definite period of time (ex: ordinary lease)

Freehold and its subtypes

lasts for an indefinite or unpredictable length of time

fee estate and life estate

What are the subtypes of freehold estate?

Fee estate and life estate

Freehold: Fee Estates and its subtypes

inheritable

simple absolute (conditional and determinable)

Freehold: Life Estate and its subtypes

cannot be transferred at death

ordinary and Per Autra Vie (in the life of another)

Freehold: Fee simple absolute (FSA)

greatest ownership interest in land. Can do what you want subject to those rights reserved by the State.

T/F: With fee simple absolute, you have outright property ownership

True

Freehold: What are the two parts fee simple absolute can be divided into?

Fee simple conditional and fee simple determinable

Freehold: What is the point of dividing fee simple absolute to conditional and determinable?

With both of these, the grantor keeps the interest in the land and the grantee receives the title to it. However, if a specific event occurs, the land returns to the grantor.

Freehold: Fee simple conditional

grantee can retain title with everything associated with fee simple absolute, as long as she meets the condition stipulated by the grantor

Freehold: Example of fee simple conditional

no alcohol to be present on the property

Freehold: Fee simple conditional - Grantor interest

you must go to court to determine right of entry if grantee breaks condition

Freehold: Fee simple determinable

land is used for specific purpose but if it's not, then the property reverts back to grantor

Freehold: Fee simple determinable - Grantor interest

possibility of reverter - automatically reverts (no chance of going to court)

Freehold: Fee simple determinable example

“as long as land is used for educational purposes”

One who has a life estate is known as a

life tenant

Freehold: Ordinary life estates

“from A to B for life”

Freehold: Life estates pur autra vie

• french; in the life of another)
  -life tenant can not waste assets (excessively deplete resources)
  -must oversee the land in a reasonable and prudent manner

Freehold: Life estates pur autra vie

if A gives property to B, B has a life estate for as long as A lives

Freehold: Life estates pur autra vie example of unreasonable “waste” of assets

clear cutting and selling all timber

3 Types of co-ownership/concurrent ownership

Tenancy by entireties, joint tenancy, tenancy in common

Co-ownership: Tenancy by Entireties

-ownership only by a husband and wife

-both hold undivided interest in the property

-there is a right for survivorship

-comes into being at death of either spouse

Co-ownership: Joint Tenancy

-husband and wife may hold property as joint owners

-children can be co-owners

-key aspect of right of survivorship (on death of one, entire estate to survivors

-owners hold undivided equal shares

Co-ownership: Parents A and B have joint ownership of their property. If A dies, who has ownership? If A and B dies, who has ownership?

A dies: B and C has joint ownership

A and B dies: C has total ownership

T/F: Children cannot be co-owners under joint tenancy

False

Co-ownership: Tenancy in Common

-each owner holds undivided interest in the property

-no right of survivorship

-co-owners can convey his or her interest without the consent of other co-owners

*Co-ownership: Tenancy in Common - What is the point of no right to survivorship and when are most created?

on death, can pass to the deceased’s estate or heirs. most created when property transferred at death

Deed

a legal document used to transfer title to real estate

Types of deeds

Warranty deed and quitclaim deed

Warranty deed

the grantor warrants good clear title; highest ownership of fees and land

Deed: A warranty deed is subject to…

limitations and restrictions noted in the deed

Deed: Other warranty deed aspects

-no claims against the estate at time of transfer

-seller will defend the title against others lawfully claiming it

-if not a clear title, grantee can sue the grantor

Deed: Quitclaim deed and the point

grantee only receives grantor’s interest. POINT: If the grantor had legal title, the grantee has legal title

Deed: Other aspects of quitclaim deed

-no warranties or covenants implied (no promises)

-if defective, cannot sue the grantor

-conveys and quitclaims vs. conveys and warrants (only as good as the interest laid to you)

T/F: You cannot sue the grantor if the quitclaim deed is defective

True

Adverse Possession

a means to acquire title to real property by possessing that property for a statutory period of time. Certain conditions must be met.

What are the conditions adverse possession must meet?

open, notorious, actual, adverse or hostile, continuous, and under claim of title

Examples of adverse possession

fencing, posting of the land, paying taxes on the land, and thinning timber

Why is adverse possession used?

It encourage use of the land, and to clear title

Easement

a non-possessory right to use over the property of another

Common example of an easement

right-of-way, passes to the subsequent owners of the land

How are easements lost?

nonuse which amounts to an abandonment

Ways easements are created

express grant (agreement), express reservation (giving section to grantee), implication, prescription (by adverse possession)

Covenant Running with the Land

an agreement which goes with the land (property title, not owner)
-agreement applies to successive owners of the land

Covenant Running with the Land becomes binding through the

regular chain of (property) title

What are the two general types of Covenant Running with the Land?

Express and Implied

Covenant Running with the Land: Express

in writing; stated in the deed

Covenant Running with the Land: Implied

not in writing; implied from language in the deed and existing conditions

Covenant Running with the Land: the general types must concern itself with…

the land

Real Estate Anti-terrorism clauses: Executive Order 13224

-Stipulations on real estate transaction since 9/11

-froze assets of terrorist’s supporters

-lists of prohibited parties

Real Estate Anti-terrorism clauses: Executive Order 13224 is common in

commercial real estate; warrants between buyer and seller

T/F: HOAs are above Florida law

False

Eminent Domain definition

the power of federal, state, and local governments to take your private property for public use

Who said “The natural progress of things is for liberty to yield, and government to gain ground”?

Thomas Jefferson

Legal instrument used for eminent domain

condemnation proceedings

Eminent Domain: Who can “take” at federal, state and local level?

municipalities, school districts, and public utilities

T/F: Private corporations do not “take” eminent domain at federal, state, and local levels

False, they generally do not, but it may be granted

T/F: There are limits to eminent domain powers

True