41.1 Law for Business, 17e, by Ashcroft and Ashcroft, © 2011 Cengage Learning Law for Business, 17e by Ashcroft and Ashcroft Chapter 41: Nature of Real Property

41.2 Chapter 41 Objectives Define real property and explain the rules about vegetation, running water, and fixtures. Name the types of multiple ownership of property. List the estates and other interests in real estate. Identify methods of acquisition exclusive to real property.

41.3 Real Property Trees and perennial crops Can be real or personal, depending upon the type of vegetation and harvestation. Rivers and streams Riverbed is owned by a property owner if an unnavigable river flows through the property. Fixtures Personal property attached to land or building.

41.4 Multiple Ownership Tenancy in common When two or more persons own property, and when one dies, the property passes to decedent’s heirs. Joint tenancy When two or more persons own property and upon death of one, property passes to other owner(s).

41.5 Multiple Ownership Tenancy by entirety Exists only between husband and wife whereby upon the death of one, the spouse becomes sole owner of the property. Community property Nine states recognize community property as property acquired during a marriage which is owned separately and equally.

41.6 Estates in Property Fee simple Owner has the right to possess property forever and may sell, lease, or dispose of the property. Life estate At the death of a life tenant, title passes as directed by the original owner.

41.7 Estates in Property Reversion Interest of grantor in life estate that returns to grantor upon death of life tenant. Remainder Interest in life estate that goes to rother than grantor upon death of life tenant.

41.8 Other Interests in Real Property Easements - an interest in land for nonexclusive or intermittent use. License - right to do certain acts on land. One may acquire property by accretion by having property that is increased by the gradual deposit of solids by water. Adverse possession is acquiring title to land by occupying it for a fixed period.

41.9 Any questions? Make sure you look at the court cases mentioned in the textbook for a better understanding.

41.10

41.11 Law for Business, 17e, by Ashcroft and Ashcroft, © 2011 Cengage Learning Chapter 42: Transfer of Real Property Law for Business, 17e by Ashcroft and Ashcroft

41.12 Chapter 42 Objectives Describe the means by which title to real estate is transferred. Explain the provisions normally contained in a deed. Summarize the steps taken to safely and effectively transfer title to real property after a deed is signed.

41.13 Transfer of Real Property A deed is the writing which conveys real property. The grantor is the original owner; the grantee is the recipient. A quitclaim deed indicates grantor gives up any interest. A warranty deed conveys grantor’s interest and also makes certain warranties.

41.14 Example of a Warranty Deed Illustration 42-1 General Warranty Deed

41.15 Provisions in a Deed Parties Signature Acknowledgment Covenants (affirmative and negative) Covenants (affirmative and negative) Description Consideration

41.16 Process of Conveyance Delivery Abstracting of title Recording Title insurance

41.17 The End! Any questions?

41.18 Law for Business, 17e, by Ashcroft and Ashcroft, © 2011 Cengage Learning Law for Business, 17e by Ashcroft and Ashcroft Chapter 43: Real Estate Mortgages

41.19 Chapter 43 Objectives Define and discuss the effects of a mortgage. List the duties and rights of a mortgagor. Explain the rights of parties upon foreclosure, sale, and assignment of the mortgage.

41.20 Real Estate Mortgages A mortgage is an interest in real estate given to secure payment of a debt. Mortgagor gives a mortgage as security. Mortgagee holds a mortgage as security.

41.21 Duties of a Mortgagor Interest and principal – Mortgagor can pay principal and interest at specified increments during the year. – Upon default, the mortgagee may invoke the acceleration clause. Taxes, assessments, and insurance – Failure to make such payments may result in default. Security of the mortgagee Mortgagor must not impair property.

41.22 Rights of the Mortgagor Possession Rents and profits Cancellation of lien Redemption Sale of property

41.23 Foreclosure What is meant by foreclosure ? What is a mechanic’s lien ? What happens if proceeds of the sale of mortgaged property exceed the debt and expenses? What is the effect of a deficiency judgment ? Activity

41.24 Deeds of Trust and Mortgage Insurance What is the difference between a mortgage and a deed of trust ? Do you know which one your state uses? What is mortgage insurance ? What federal agencies use mortgage insurance? Why do they use it? Activity

41.25 Law for Business, 17e, by Ashcroft and Ashcroft, © 2011 Cengage Learning Do you understand the concepts in this chapter?