Real Property CHaracteristics, Legal Descriptions and Property Us

Sales exam 11 questions

Real Property

Land, improvements attached to the land, and the rights to use them.

Personal Property (Chattel) (Personalty)

Anything not classified as real property; rights or interests in things of a temporary or movable nature. Transferred through an addendum and or bill of sale

• It is not added in real estate contracts

Appurtenance

Rights, privileges, or improvements that belong to and pass with the land.

Emblement

Crops cultivated annually, such as corn, wheat, and barley, considered personal property of the farmer.

• doesn’t include perennials (things that grow from the same plant

• (i.e.) Bushes, trees, SUGARCANE do not count

• Emblements belongs to the tenant farmer that planted them

• the lease is binding upon the new owners or heirs

• Ownership can be transferred through a bill of sale

Improvement

Man-made additions to land designed to improve a property's value, such as buildings and landscaping.

• Glued down, screwed down, drilled down

Shrubbery is considered this (i.e.) rose bushes

• must be removed prior to delivery of possession

Fixture

Personal property that has been installed or attached to become real property.

(i.e.) Ceiling fan, shower head

• Severance is not allowed prior to the end of a sale or a lease UNLESS it has been excluded in sale or lease

• can be described as an improvement

Trade Fixture

Personal property installed on leased property for the purpose of the tenant's occupation or profession.

(i.e.) Pizza oven, display cases, coolers

• do not have to be excluded in the sale

• still have to be removed prior to the delivery of sale

-commercial real estate

Accessories

Structures or items that are considered part of the real property, such as stoves, pool equipment, and keys.

Severance

When real property becomes personal property by being 'severed' from the land.

• (i.e.) process of removing

Police Power

Government right to regulate and control the character and use of property for public health, safety, and welfare.

• (i.e.) zoning, building codes

• how you build it, what it is made out of

• for the saftey of the surroung owners and occupants

Eminent Domain

The right of government to take private property for public use through the ACTION of condemnation

• only time the government must compensate the property owners

Taxation

The right of government to tax real property.

• property taxes are the HIGHEST priority lien on real property (AKA.) Ad Valorem taxes/ According to value

• Unpaid taxes create an automatic lien on property

• AT FORECLOSURE, property taxes are always paid 1st

Escheat

The right of the government to take real property if an owner dies without a will and with no heirs.

• this includes abandonment to property

• purpose of escheat to ensure that no land remains unowned

Zoning

Local laws controlling how land is used, such as residential or commercial purposes.

Buffer Zone

An area of land separating incompatible land uses, such as residential and commercial. (NOTE:) Used for wetlands

Variance

Permission to violate current zoning regulations; obtained by a hearing.

• can be requested prior to construction

• must speak with planning and zoning committee

Encumbrance

A limitation on the rights of a property owner.

• grantor gives

• A cloud on title

• (i.e.) Resveration (Mineral rights)

Reservation

When a grantor withholds title to a part of the land transferred by a deed.

Encroachment

When structures or improvements of one property overlap onto another's property.

• (i.e.) Fence

• disclosed on the seller’s discloser AS A LISTING AGENT

• The buyer’s agent must recommend a survey

• Surveys disclose encroachments

Easement

A right in land granting limited use or enjoyment of another person's land.

• use without possession

• another example of encumbrances

• should be recorded, created in writing

• could be expressed (written or verbal) Implied (actions or evidence)

• could be of part of a sale (possible an agreement separate through the sale)

Annexation

Permanent attachment of fixtures to real property

Fixture Tests

1. Method of Attachment

2. Adaptation to the property (custom built vs. stock items)

3. Intention of the parties attaching the fixture (temporary or permanent)

Non-homogeneity (Physical Characteristics of LAND)

No two pieces of land are identical

Immobility (Physical Characteristics of LAND)

• land never moves

• owned at the subsurface, surface and air rights

• legal description doesn’t change

Indestructibility (Physical Characteristics of LAND)

• dirt remains, land is indestructible

• (i.e.) weather disasters

Scarcity (Economic Characteristic of land)

• land is in short supply while demand is great

• increases value in case of a shortages properties

Modification

improvements made by man to land and to surrounding parcels of land.

• (i.e.) swimming pools, crops,

Fixity

Land, buildings, and other improvements to land are considered fixed or permanent investments; they are NOT liquid assets.

• fixed investment

Situs

Locational preference, or location from an economic rather than a geographic standpoint. (This can change over time as people change.)

• (i.e.) putting a school in a resdiential zone, a chicken fil a at an rural community

• mindful of zoning

Land Description

Created and determined by a surveyor. Necessary part of a contract or conveyance (deed, listing, sales contract,) to become enforceable

• NOT required for leases thus not enforceable

It is a description of such certainty and accuracy that anyone can go to the ground and identify the land

Metes and Bounds

• oldest legal description

• POB (Point of Beginning)

• Angles and terminal points

• may use street names

• Monuments (permanent survey markers) often starting point

• Uses compass directions, degrees and minutes

• NOTE: Monuments can be man-made (i.e.) iron pipe OR Natural (i.e.) stand of timber, old oak tree)

Lot and Block

• MOST common description used in residential listing agreements (i.e.) 1-4 family

• Recorded map called PLAT

• has descriptions along with subdivision descriptions

• - uses subdivision descriptions

Government Survey System (GSS) Rectangular Survey System (RSS)

• uses baselines (latitude lines) and meridians (longitude lines), townships and sections

• Townships and Sections are located in Ranges

• One township= 36 sections

• 1 sections = 640 acres = 1 square mile

• 1 acre = 43,540 square feet

• 1 mile = 5,280 ft

Non-Conforming Use

When zoning constantly changes, current buildings are not to tear down their bulidings thus becoming grandfathered in.

• it is automatic

• court hearing or application is NOT required

• still can sell property IF it continues to stay the same

• IF tear down, then there is no choice but to follow zoning

Set back

Distance between a lot and building line

• (i.e.) uses for sidewalks

• falls in line with zoning

Conditional Use/Special Use

• granted by the zoning committee or deed restrictions (HOA)

• main purpose is to benefit the neighborhood (i.e.) a school within a residential subdivision

• PUD (Planned Unit Develop) - which could also be implemented to encourage more open third spaces since it requires the houses to be even closer than normal

• HOA (non-profit) will maintain the green spaces

• may be forwarded a tax bill to maintain said green spaces if its within the vicinity

Buffer Zones

• separate non-compatible uses

(Ex. Q) Best buffer zone between houses and commercial is apartments

• uses for protected wetlands (endangered species) green belt

Certificate of Occupancy

Granted once a property has passed all necessary inspections (Builders receive this usually)

Inverse Condmenation

When someone forces the governments to buy the property

Abandonment (legal term)

The act of surrendering or forfeiting rights or property

CC&Rs (Deeds Covenants, Conditions and Restrictions)/ Deed Restrictions/ Deed Covenants/ HOA Rules

Restrictions put upon you by the previous owners or developer. Can change over time

• Condos can enforce HOA rules (POA)

To control land use, devolvement methods and materials for constructions, style and appearance

• (i.e) which way your garage faces, how many trees you can have, what your roof is made out of

Found in a recorded document called the Declaration of Restrictions

• imposed by the grantor

• any violations will be met with a civil court actions brought by other property owners (Injunction)

• In case if deed restriction is in conflict with zoning rules, always obey the STRICTER of the two

GrantOR Giver

• Seller

• Owner

• Vendor

• Mortgagor

GrantEE “Receiver”

• Buyer

• Vendee

• Mortaggee

Limitation (Prescription)

Against the owner’s will

Easement Appurtenant

• Servaint estate willing gives access

Easement by Necessity/ Exit/ Entry

• court ordered

Easement In Gross

Belongs to a person or corporation

(i.e) Utility Easement

Will always stay there no matter the owners in the near futures

License

• a usage of servient property for a short amount of time

• temporary use/access of someone’s property

• given verbally

• easily revoked

Adverse Possession (squatter’s rights)

Occurs when property is acquired from the rightful owner through the Statute Of Limitations

• must be hostile, visible or open, actual or notorious, continuous and distinct for the statutory period

• a way to get real property without a deed

Lis Pendens

• pending lawsuit against the property

• clouds title

• recorded notice filed against a specific property