Real Property

To which of the following parties does the landowner owe a duty to take reasonable steps to discover any danger and a corresponding duty to warn the party of or correct the discovered danger?

Invitee

Which of the following statements is incorrect about fixtures?

personal property that is readily removable from the realty is generally a fixture

Characteristics of the fee simple estate include all of the following except:

it is not subject to rights of the owner's surviving spouse

A personal, revocable privilege to perform an act or series of acts upon the land of another is called a(n):

license

At common law, the occupier of land owed the same duty to both licensees and invitees.

False

Which of the following represents a duty owed by a landowner to a trespasser?

the duty to refrain from causing intentional harm once the presence of the trespasser is known

Under a freehold estate, a person owns property only for a specified number of years.

False

Freehold Estate Rights

Ownership, Possession, Use

Leasehold Rights

Possession, Use

Definition of Land (Real Property)

Soil and all things of permanent nature affixed to the ground; also includes water and minerals

Real Property Definition

The land plus anything growing on it, attached to it or erected on it

Easement Definition

a legal agreement allowing one party to use another's property, often involving a fee or exchange of value

Land that is subject to easement is the _________________

subservient tenement

Subservient Tenants…

have ownership of and responsibility for maintaining usability of easement

Benefited land (property with use of an easement on an neighboring property) is the ____________.

dominant tenement

Easement by Implication

a non-written, legal right to use another’s property, inferred from prior, obvious use when a single parcel is divided

Easement by Agreement

a formal, written contract between two landowners granting one party the right to use another’s property for a specific purpose, such as access, utilities, or shared driveways.

Easement by Prescription

a property right acquired through long-term, non-permissive use of another person’s land, similar to "squatter's rights" for access rather than ownership

Real Property Profits

a legal right to enter another person’s land to remove resources, such as timber, minerals, crops, or fish

Easements can be terminated through…

…express release (written agreement), merger of title (one person owns both properties), abandonment, or the expiration of the set time period or purpose

License Definition

Personal, revocable privilege to perform an act(s) on the property of another

Lien Definition

a legal right or security interest acquired by a creditor over a debtor’s property (real or personal) to ensure payment of a debt or performance of an obligation.

Liens arise…

… from voluntary act of property owner, typically as security for debt or service

Involuntary Liens

tax liens, judgment liens, mechanic’s liens

Fixture Definition

personal property attached to earth or placed in a building such that it is considered part of the real property

Tests of a Fixture

Annexation, Adaptation, Intent, Damage and Expense

Annexation

personal property affixed in such a way that it cannot be removed without damaging or destroying the real property

Adaptation

personal property especially adapted or suited to the use made of the building

Intent

in the absence of proof of intent, courts resort to the nature of the property, method of attachment, and circumstances

Trade Fixtures are…

….personal property used for conducting business that commercial real estate tenants attach to or install in leased properties that they can then uninstall and remove from the space when they vacate it

Are moveable machinery and equipment considered fixtures?

They are not, although removal involves disconnecting wires and water pipes or unbolting them from the floor

The “Who Wants to Know” test for fixtures

a legal test used in real estate to determine if an item is a fixture (part of the property) or personal property, focusing on who is disputing ownership

Which form of real property ownership is characterized by the greatest possible property interest in land, granting its owner all traditional property rights?

Fee Simple

Fee Simple Absolute

the owner retains both title and possession to the land regardless of any future events or circumstances

Fee Simple Defeasible

a fee simple interest that gives grantee all rights subject to complying with the

restrictions- rights automatically reverts back to the grantor if a certain condition is met

Fee Simple Estate

the highest and most complete form of real estate ownership, granting the owner absolute, unconditional ownership of land and any structures on it, enduring indefinitely and passing to heirs or transferable during life, alienable by will, passes to heirs if not transferred by will, subject to rights of surviving spouse, and can be used to satisfy owner’s debts

Life Estate

a form of joint property ownership where one person (life tenant) holds the right to live in and use a property for their lifetime, while another person (remainderman) inherits it automatically upon the life tenant's death

Future Interest

a legal right to possess or own property at a future time, rather than in the present

Remainder Interest

A type of future interest: The future rights that a third party has to own an estate after the expiration of the interests of a current holder

Possibility of Reverter

interest after conveying land subject to a condition or provision that may cause the grantee’s interest to be forfeited

Trespassers Common Law Rule

no duty to warn of dangers; duty to refrain from causing intentional harm once presence is known

Attractive Nuisance Doctrine

a tort law principle holding property owners liable for injuries to trespassing children if the injury is caused by a dangerous, artificial condition that attracts children who cannot appreciate the risk

Licensee Common Law Rule

on premises with permission; duty to warn of non-obvious dangers known to the owner

Invitees Common Law Rule

owner owes duty to take reasonable steps to discover danger and either warn the invitee or fix it; if owner fails to take the degree of care required and an invitee is harmed, the owner is liable

Types of Co-Ownership of Real Property

Tenants in Common, Joint Tenants with Right of Survivorship, Tenants by the Entirety, Community Property Rights

Community Property Rights

real estate acquired during marriage is generally considered jointly owned 50/50, regardless of whose name is on the title. Both spouses have equal rights to manage, control, and dispose of this property. Upon divorce or death, this property is typically split equally, while separate property (acquired before marriage or inherited) remains individual.

Tenants in Common

a form of shared property ownership where two or more parties own distinct, fractional shares of a property. Key features include the ability to hold unequal shares, no right of survivorship (shares pass to heirs, not co-owners), and the right to sell or transfer interests independently.

Joint Tenants with Right of Survivorship

a form of co-ownership where two or more people own an undivided, equal interest in property. Upon one owner's death, their share automatically passes to the surviving owner(s) by operation of law, bypassing probate. This ensures immediate, seamless transfer of ownership.

Tenants by the Entirety

a specialized form of joint property ownership available exclusively to married couples in some US states, allowing them to own property as a single legal entity. Key features include automatic right of survivorship (avoiding probate), protection against individual creditor liens, and the requirement of mutual consent to sell or transfer the property.

Common Interest Developments (CIDs) or Multi-Unit Housing Tort Liability

generally, liability for injuries of third parties in common areas falls on the condominium association, not the individual owners

Deed Definition

an instrument by which a grantor transfers an interest in land to a grantee

Quitclaim Deed

transfers whatever interest, if any, grantor has in the property

Warranty Deed

a legal document used in real estate to transfer property ownership, providing the buyer (grantee) with the highest level of protection. It guarantees that the seller (grantor) holds clear title, free from hidden liens or encumbrances, and has the legal right to sell it. If title issues arise later, the seller is legally responsible

Execution of Deeds

Must be signed or sealed by the grantor who has legal capacity to execute it

Delivery and Acceptance of Deeds

No effect and title does not pass until the deed has been delivered, which is a matter of intent

Recording of Deeds

filing property transfer documents with the county clerk or city register to provide public notice of ownership confirming the grantee is the present owner

Is recording deeds strictly mandatory for a transfer to be legally valid between the parties involved?

No, but it is legally required to protect ownership rights against third parties

Recording Deeds Race Statutes

real estate recording acts that award priority of title to the first party to record their deed, regardless of notice or good faith

Recording Deeds Notice Statutes

property law recording act that grants title priority to a subsequent purchaser who acquires property without knowledge (notice) of a prior, unrecorded sale. Under these statutes, a bona fide purchaser (BFP) wins over a previous buyer who failed to record, even if the BFP records later.

Recording Deeds Notice-Race or Race-Notice Statutes

The first Bona-Fide purchaser to record the deed has the title and rights

Grantee cannot claim protection by virtue of recording deed when…

All of the above

Additional Protection of Buyers

Buyer is protected by procuring title insurance or an abstract of title, a summarized report of property title and ownership

Implied Warranty of Habitability or Fitness for Use

implied warranty that house and foundation are fit to use

Warrantees of Title

covenant of seisin (grantor owns the estate conveyed), of right to convey, against encumbrances, of quiet enjoyment, and of further assurances grantor will execute any additional documents required

Grantee’s Covenants

Grantee may agree to do or not do certain acts; binding contract and grantor may recover from grantee for breach, right to enforce the covenant also runs with the land owned by the grantor to whom the promise is made

Eminent Domain

Property taken from private owner for a public purpose

Adverse Possession

Title acquired by continuously possessing land in a visible, notorious, exclusive, hostile manner for a statutory period (typically 10-20 years)

Lien Theory of Mortgages

mortgagee has only a lien on the property and is entitled to possession and rents of the property only upon foreclosure

Title Theory of Mortgages

mortgagee has the right, upon foreclosure, to possession and rents on the property

Deed of Trust Theory Mortgages

title to the property is actually held by a trustee; if the mortgagor defaults, the trustee has the authority to conduct nonjudicial foreclosure within 90 days of notice

Mortgage Form Rules

Must be in writing to satisfy statute of frauds

reverse mortgage

a loan for homeowners (mortgage paid off) aged 62 or older that allows them to convert home equity into tax-free cash without monthly repayments

Recording or Filing of Mortgage is binding between parties ______________.

even if not recorded

Responsibilities of the Parties

Taxes, Assessments, and Insurance: rests with mortgagor; absent agreement, neither party under a duty to insure the property

Impairment of Security Mortgages

mortgagor is liable for any damages caused by mortgagor that reduces property value; both mortgagor and mortgagee have a right of action against a third part who wrongfully injures the property

Transfer of Interest by Mortgagor

may be done without mortgagee consent; does not affect liability unless the mortgagee agrees to substitute the mortgagor

Liability of the Parties in a Transfer by a Mortgagor

Assumption: mortgagor remains liable, transferee is liable, and property is subject to foreclosure if payments are not made

Transfer of Interest by Mortgagee

a mortgage may be transferred or assigned by the mortgagee

Rights of Mortgagee after Default

Mortgagee may enforce the mortgage by foreclosure, resulting in the sale of the property

Rights of Mortgagor after Default

Stay of Foreclosure, Redemption

Stay of Foreclosure

a legal halt to the sale of a home, typically achieved through bankruptcy filing, court-ordered motions, or lender negotiation - in some cases authorized by statute to prevent undue hardship

Redemption

mortgagor has the right to pay off the mortgage lien and all foreclosure expenses and thus acquire title to property

Easements are rights that:

travel with the land, are written in the deed, are irrevocable