terms

Real property

Land & everything that is permanetly attached to the land & everything that is appurtenant to the land

Personal property (personalty)

All propery that doesn't fit the definition of real property. CHATTLES are moveable

Land

The earth's surface extending downwards to the center of the earth & upward to infinity

Real estate (realty)

Land at, above, or below the earth's surface, including all things permanently attached to it, whether artificial or natural

Real property

The land itself, the improvements there on, & the interests, benefits, & rights inherent in the ownership of real estate

Economic characteristics of real property

Scarcity Location Improvements Permanence of investment (SLIP)

Physical characteristics of real property

Immobility Indestructibility Uniqueness

Improvement ON the land

Improvements of a private nature (i.e. house, pool)

Improvements TO the land

Improvements of public nature (i.e. sidewalks, parks, streets)

Highest & best use

The use that will give the owners the greatest actual return on their investment

Broker

Acts as an agent who negotiated the sale, purchase or rental of property on behalf of others for a fee/commission

Categories of real estate

1)residential 2)commercial 3)industrial 4)agricultural 5)special purpose

Point of equilibrium

Point when supply & demand are balanced

Bundle of Legal Rights

Disposition
Enjoyment
Exclusion
Possession
Control
(DEEP C)

Appurtenance

A right or privilege that goes w/ ownership of the land (includes mineral/subsurface, air & water rights)

Surface rights

The rights to use the surface of the earth

Subsurface rights (mineral rights)

The rights to use the space below ground level & to extract the natural resources lying below the earth's surface

Air rigts

Rights to use the air above the land

Riparian rights

Non

Littoral rights

Navigable bodies of water w/ a tide owners have rights to the mean high water mark

Foreshore

The strip of land btwn high & low tide. Owned by the state of N.C.

Accretion

A gradual increase in land from the deposit of soil by the water

Reliction

Water gradually recedes or disappears permanently; new land is gained

Erosion

Loss of land due to nature over time. Cannot reclaim land

Avulsion

Loss of land due to a catastrophic act of nature. Can potentially be reclaimed by owner.

Lateral support

The right to have adjacent property support the natural boundaries of the land

Subjacent support

When a land owner severs subsurface rights, whoever obtains them must ensure surface support of the landowner's property is maintained

Manufactured home (mobile homes)

Built according to H.U.D. construction standards & affixed w/ H.U.D. label

Steps to convert a manufactured home to real property

Wheels & hitch must be removed, affixed to a permanent foundation on land owned by the homeowner

Modular homes

Pieces constructed in factories. Once erected at site are automatically real property. Must be affixed w/ H.U.D. label

Emblements

Annual crops. Usually considered real property.

Severance

Converting real property to personal property by removal (i.e. cutting down a tree)

Annexation

Converting personal property to real property by permanent attachment

Total circumstances test

A legal test applied by the courts to determine whether an item is a fixture or personal property

4 parts of total circumstances test IRMA

1)Intention of annexor 2)Relationship of annexor 3)Methods of annexor 4)Adaptation to real estate

Trade fixtures

An article owned by a tenant & attached to a rented space or building for use in conducting business

Agricultural fixtures (NC LAW)

Fixtures installed during lease are considered real property & cannot be removed

Uniform Commercial Code (UCC)

If a homeowner purchases an item on credit & gives the creditor a security agreement, that item remains personal property & may be removed by creditor in event of default. Becomes real property when paid in full. Must be disclosed when selling a property.

Estate in land

The amount & kind of interest a person has in real property

Freehold estates

Estates of indeterminable length of ownership (such as those existing for a lifetime or forever)

Nonfreehold/Leasehold estates

Any real estate that isn't a freehold estate

Fee simple absolute

No limitations other than what's conveyed by law. Highest form of land ownership

Fee simple defeasible

Estate may be lost (or defeated) on occurrence or nonoccurrence of a specified event. Previous owner enforces restrictions that current owner must adhere to maintain ownership

Fee simple subject to a condition subsequent

Estate dictates some action or activity that the new owner must not perform. If owner violates former owner can take them to court to regain control of property.

Fee simple determinable

Estate requires that a specific activity or land use continue. If activity or use isn't complied w/ owner or heirs regain control of property automatically

Future interest

The rights of re

Life estate

Ownership of land is tied to duration of life of owner

Life estate pur autre vie

Estate for life of another. When a 3rd party's life term measures ownership of the estate.

Remainder interest

Grantor can name a successor (remainderman) to the property

Reversionary interest

When a grantor doesn't name a remainderman, property reverts back to them when life estate expires

Estovers

Right to use property resources in regards to tenant. Cannot waste land.

Homestead

Legal life estate in real estate occupied as the family home. Protected from creditors during occupants lifetime.

Tenancy in common

2+ own same property; undivided possession of property; ownership doesn't have to be equal; each owner may encumber or convey their interest; survivorship NOT possible; right to partition

Joint tenancy

2+ own same property; undivided unity of possession; ownership USUALLY equal; all tenants must be present @ time of purchase & sign deed; survivorship is automatic (must be added w/ exact wording NC)

Tenancy by entirety

MUST be married; ownership MUST be equal; both must be present @ time of purchase & sign deed; undivided unity of possession; survivorship is automatic

NC condo act

When new condo is being sold by developer, buyer has 7 day right of recision

NC real estate commission (NCREC)

9 members; 7 appointed by governor; 1 by senate; 1 by house of reps; 2 must have NO interest in real estate; 3 must be licensed real estate brokers. 3 year terms.

Qualifications to be NC real estate broker

1)Must be 18 2)US citizen or right to work 3)social security # 4)75 hour pre

New home builder employees

DO NOT need license to sell

Working w/ real estate agents

Pamphlet must be given @ first substantial contact. No later than 3 days. Signed & retained (if refuse to sign must make note)

Real estate year

July 1

Yearly license renewal requirements

8 hour continuing education course; $45 fer

Doesn't have to take continuing education during 1st year of licensing

Provisional broker

Income tax exclusion for sale of personal home

$250,000 for single
$500,000 for married

Broker In Charge requirments

Work full time (or part time for 5 years) take BIC course

All records must be kept for

3 years

Lien

A non possessory charge against property that provides security for a debt or an obligation of the property owner. Type of encumbrance

Voluntary lien

Contractual or consensual (i.e. a mortgage)

Involuntary lien

Created by law (i.e. tax lien)

Specific lien

Secured by a specific parcel of property & affects only that particular property (a mortgage is a voluntary specific lien)

General lien

Affects all property of a debtor, both real & personal

Ad valorem

Property taxes according to value

Special assessment

Levied to cover improvements which add property value

Lengths of NC tax liens

10 years, takes priority over all other liens

Mechanic lien

Gives security to those who perform labor or furnish materials in the improvement of real property. Must be within 120 days of project completion.

Judgement

A decree issued by a court

Deed restrictions

Private agreements placed in the public record that affect the use of land (type of encumbrance)

Lis pendens

Pending litigation

Writ of attachment

Type of encumbrance on real property, recorded for a debt or mortgage, unsecured property that can potentially be used

Writ of execution

Judgement is recorded, then directs the county sherif to sell property to satisfy judgement

Easement

Non possessory right to use the land for a particular purpose

Easement appurtenant

Annexed to the ownership of one parcel of land & used for the benefit of another parcel of land

Servient tenement

Tract over which easement runs

Dominant tenement

Tract that benefits from the easement

Easement in gross

A personal interest in or right to use the land of another. Benefits a person or entity. If company closes, easement is dead

Easement by necessity/implication of law

All owners must have rights of ingress & egress from their land

Easement by prescription

When a claimant has made use of another's land for a certain period of time (20 yrs in NC). Must be done in visible/open view, must be continuous & exclusive

License

A personal non

Encroachment

When an improvement or any portion of extends beyond the land of its owner & covers some land of an adjoining owner, street or alley

Machinery act

Regulates standards for real property taxation, standards for property tax assessments, standards for property tax appraisal & requirements for tax

Assessment

Official valuation process

Assessed value

Generally based on the sale prices of comparable properties

Assessed value in NC

100% of market value

Octennial reappraisal

Real property is assessed based on a statutory schedule & then reappraised every 8 years

September 1st

Property tax bill sent out, can pay as late as january

Mass appraisal

Technique that determines assessed value for all lands in a given area by applying an overall % increase or decrease

4 types of leasehold estates

1)estate for years 2)estate from period to period 3)estate at will 4)estate at sufferance

Grantor

Person who gives the property

Conventional life estate

Ownership terminates once tenant dies, can't be willed, but can have successive life tenants

Severalty

Sole ownership