Chapter 25
Real Property
Real property is defined as immovable or attached to immovable land or buildings.
Components of real property include:
Land
Buildings
Subsurface rights
Plant Life and Vegetation
Fixtures
Types of Property
Real Property: Refers to land and any interest in land, including all rights associated with it.
Rights in real estate include:
Possession
Use
Enjoyment of property
Personal Property: Everything that is not real property, such as:
Personal computer
Car
Jewelry
Land Description Systems
A land description serves as an address for land.
Two major land description systems:
Metes and Bounds: A system using directions and distances to describe land.
Sections-Township-Ranges (Government Survey System): A grid system.
Metes and Bounds Survey Method
Utilizes landmarks or compass directions to define property boundaries.
Example of providing directions in a metes and bounds system:
Start at the oak tree
Walk 200 feet north
Turn east 100 feet
Proceed south 200 feet
Turn west 100 feet back to the starting point
Grid Breakdown (Scaffolded)
Township: A square measuring 6 miles by 6 miles.
Each township contains 36 sections.
Each section is equivalent to 1 square mile (640 acres). Sections can be divided into halves and quarters.
This grid system is akin to a giant graph paper layout of the land, resembling a chessboard.
Land and Buildings
The most common form of real property.
Typically, a landowner purchases surface rights.
The owner may use and enjoy the property, but must adhere to government regulations.
Subsurface Rights
Refers to the mineral rights beneath the surface of the land.
Examples include rights to:
Gold
Oil
Natural Gas
Subsurface rights can be sold separately from surface rights.
Air Rights
Landowners may sell or lease air space parcels above their land.
Examples include:
Restaurants purchasing air space for construction over highways.
Developers acquiring air rights from nearby properties to build taller structures.
Particularly valuable in urban locations.
Plant Life and Vegetation
Comprises both natural and cultivated plants, such as:
Trees
Crops
Plants are considered real property until harvested and are sold along with the land.
Fixtures
Items of personal property that become attached to real property, making them part of the realty.
Examples include:
Kitchen cabinets
Carpeting
Doorknobs
Fixtures are included in the sale of a building unless explicitly stated otherwise.
Estates in Land
Represent ownership rights in real property.
Considered a bundle of legal rights allowing the owner to:
Possess
Use
Enjoy the property.
The type of estate is determined by the deed, will, lease, or other documents that transfer ownership rights.
Transfer of Property at Death
Property transfer upon death can occur through:
Probate: Legal process where a will is validated.
Operation of Law: Automatic transfer through laws governing inheritance.
Contract: Transfer per the terms of a contract.
Freehold Estate
Defined as an estate where the owner possesses a present possessory interest in real property.
Types of Freehold Estates include:
Estates in Fee
Fee Simple Absolute: The highest form of property ownership.
Characteristics include:
Infinite duration
No limitations on inheriting
Ownership does not end based on events occurring.
Fee Simple Defeasible: A qualified fee ownership.
Owner maintains all rights typical of fee simple absolute, except ownership may be revoked upon certain conditions.
Example: Conveying property "as long as the land is used as a church."
Life Estates: Interest in property that lasts for the lifetime of a specified individual.
Can be based on:
The life of the grantee
The life of a third party (termed estate pour autre vie).
Terminates upon the death of the individual, reverting back to the grantor.
Holding Title to Real Property
Title can be held in several forms:
Sole Ownership: Single individual holds the title.
Concurrent Ownership: Involves multiple individuals.
Types of concurrent ownership include:
Joint Tenancy: Co-owners have right of survivorship.
Property passes automatically to the surviving partner upon death.
Joint tenancy ends if a joint tenant sells or transfers their interest.
Tenancy by the Entirety: Form of co-ownership exclusively for married couples.
Both spouses have survivorship rights but need each other's consent to transfer interest.
Tenancy in Common: Co-owners can sell or transfer their interest freely.
Deceased tenant's interest passes via will rather than survivorship.
Community Property: Recognized in nine states.
Each spouse owns half of the income earned during the marriage; property from gifts or inheritances belongs solely to the receiving spouse.
Community Property States
States that recognize community property include:
Arizona
California
Idaho
Louisiana
Nevada
New Mexico
Texas
Washington
Wisconsin
Rights of Concurrent Ownership
Summary of rights related to different forms of concurrent ownership:
Joint Tenancy: Right of survivorship; tenant can transfer interest.
Tenancy in Common: No right of survivorship; tenant can transfer interest.
Tenancy by the Entirety: Right of survivorship; requires joint consent to transfer.
Community Property: Both spouses share ownership, consent needed to transfer.
Condominium Ownership
A common form of ownership in multi-dwelling buildings:
Purchasers own their individual units and share ownership of common areas as tenants in common.
Owners can sell or mortgage their units without needing consent from other owners.
Cooperative Ownership
Form of co-ownership in a multi-dwelling building where:
A corporation owns the building and residents own shares in that corporation.
Each owner leases their unit under a long-term lease.
Future Interests
Types include:
Reversion: Right to regain possession upon expiration of a limited interest.
Remainder: Right of a third party to possess the property once a limited interest expires.
Sale of Real Estate
The process is called a conveyance, involving the transfer of title from seller to buyer.
Conducted via a real estate sales contract.
Typically involves transfer of fee simple unless otherwise agreed.
Title deed is delivered at closing after payment.
Deeds
Grantor: The individual transferring ownership interest.
Grantee: The individual receiving ownership interest.
Types of deeds include:
Warranty Deed: Guarantees good title.
Quitclaim Deed: Transfers only the interest the grantor has in the property.
Recording Statutes
Mortgage or deed of trust must be recorded in the county recorder’s office where the property is situated.
Provides constructive notice of interests in the property.
Quiet Title Action
A legal action taken to clarify ownership rights to a parcel of real property.
Requires public notice of the hearing.
Marketable Title
Defined as title free from encumbrances or defects that are undisclosed but could impact property value.
Assured by:
Attorney's opinion
Torrens system
Title insurance
Tax Sale
A method to transfer property ownership due to unpaid property taxes.
Involves a government lien on the property; if unpaid, a tax sale occurs.
Most states allow a redemption period.
Gift, Will, or Inheritance
Gift: Voluntary transfer of property without compensation.
Will: Distributes property to named beneficiaries.
Inheritance: Property distribution to heirs according to state intestate laws.
Adverse Possession
A legal doctrine allowing an individual to gain title to another’s property if specific conditions are met:
Statutorily established time period.
Open, visible, and notorious possession.
Actual and exclusive use.
Continuous and peaceful possession.
Hostile and adverse to the owner’s interests.
Government properties cannot be claimed via adverse possession.
Case Study: Witt v. Miller (1993)
Facts: The Witts bought a lot and trespassed approximately 40 feet into an adjacent lot, building a pool and garden inadvertently on the neighboring property.
The Millers later purchased the neighboring lot and demanded removal of the Witts’ constructions.
Legal Implication: Highlighted issues of encroachment in property law.
Property Rights After Closing
Owners' rights upon property acquisition include:
Possession: Right to occupy the property.
Control: Management of the property.
Exclusion: Right to prevent others from entering the property.
Enjoyment and Disposition: Right to use, enjoy, and transfer or dispose of the property as they see fit.
Case Study: Hollywood Silver Fox Farm v. Emmett
Context: Emmett used gunfire to disrupt a neighboring fox farm to affect the business. The court ruled against him, indicating no one has an absolute right to disturb their neighbors' peace and enjoyment of their property.
Nonpossessory Interests
Defined as interests that do not involve possession of the property.
Types include:
Easements: Rights to use another's land for specific purposes.
Easement Appurtenant: Benefits the owner of an adjacent property.
Easement in Gross: Benefits an individual rather than a piece of land.
Easements can be granted expressly, implied, or through prescription.
Licenses: Grant temporary permission to use someone’s property; typically revocable (e.g., movie ticket).
Profits: Rights to extract resources from another’s property.
Zoning Laws
Local regulations governing land use, enforced by zoning commissions.
Create use districts (e.g., commercial or residential).
Regulate the height, size, and location of buildings.
Establish aesthetic requirements for properties.
Allow for variances under specific conditions.
Latin Maxims in Property Law
Culus est solum eius est usque ad coelum et ad inferos: A principle stating landowners enjoy rights from the highest heavens to the center of the earth.
Case Study: Bernstein of Leigh v. Skyviews & General Ltd. (1978)
Facts: Skyviews flew over properties to take aerial photographs, which led to a dispute with property owners regarding privacy.
Outcome: The court ruled the aerial photography did not infringe on property rights as long as it did not obstruct reasonable use of the land.
Case Study: U.S. v. Causby (1946)
Facts: Owner claimed that low-flying military planes over their property caused disturbances, impacting their chicken farm.
Outcome: The court determined that government activities at low altitudes can constitute a taking, providing grounds for compensation.
Case Study: Waverley Borough Council v. Fletcher (1996)
Facts: A finder of property (brooch) argued ownership but was deemed unlawful for damaging council property.
Principle Established: Items found within the land typically belong to the landowner if their original owner cannot be identified.
Nuisance Claims
Example: Smithfield Foods was found liable for nuisance due to offensive odors and disturbances affecting local residents.