© 2012 Cengage Learning

Rights and Interests in Land Chapter 3

© 2012 Cengage Learning In This Chapter General and legal information concerning rights and interests in land.

© 2012 Cengage Learning Right to Use of Land Feudal System Allodial System

© 2012 Cengage Learning The right of government to tax private property. Provides money for schools, fire protection, parks, libraries and is the major source of income for government revenue. Property Taxes Government Rights in Land

© 2012 Cengage Learning The right of government to take private property for public use upon payment of just compensation. Eminent Domain Government Rights in Land Condemnation proceedings Severance damages

© 2012 Cengage Learning The right of government to regulate private property for the protection of the general public’s health, morals, and welfare. Examples include building & fire codes, zoning, and planning laws. Police Power Government Rights in Land

© 2012 Cengage Learning means “fall back” Ownership of property passes to the government if there is no will and no heirs. Escheat Government Rights in Land

© 2012 Cengage Learning Fee Simple Estate refers to one’s legal interest or rights in land. Fee Simple is the largest estate one can hold in real estate. Title refers to the ownership.

© 2012 Cengage Learning Encumbrances Any claim, right, lien, estate, or liability that limits the fee simple title to property.

© 2012 Cengage Learning Property rights are what gives value to the real estate. Private property rights are subject to limitations imposed by government. Thus, this can limit the value of the investment. Real Estate as a Bundle of Property Rights

© 2012 Cengage Learning Real estate ownership is, in actuality, the ownership of rights to land. The largest bundle available for private ownership is called “fee simple”. The Fee Simple Bundle of Rights

© 2012 Cengage Learning Note that the fee simple bundle shrinks as an owner voluntarily removes rights from it. Removing Sticks from the Fee Simple Bundle

© 2012 Cengage Learning Right or BenefitStick in Bundle Control Mortgage Lease Impose covenants or conditions Grant easement Grant license Build or remove structures Use & Enjoy Occupy as residence Use as place of business Farm Mine/drill for oil, etc. Place of recreation Exclusion Maintain privacy Non-trespass Disposition Sell or refuse to sell Give Will Abandon Real Estate as a Bundle of Property Rights

© 2012 Cengage Learning Easements Right or privilege one has to use the land of another. Grant is a written document. Implication is the right to cross over another’s property to get to your land. Prescription is a right created by use of another’s property as easement for a period of time.

© 2012 Cengage Learning Easement Types Easement appurtenant is the right to cross over a property in front in order to get to your property in the back.  Servient estate- back lot  Dominant estate- front lot Easement in Gross is given to person owning land. Party Wall Easement exist when a single wall straddles the lot line that separates two parcels of land.

© 2012 Cengage Learning Easement Termination When the purpose for the easement no longer Exists. When the dominant and servient estates are combined with the intent of extinguishing the easement. By release from the owner of the dominant estate to the servient estate, or by lack of use.

© 2012 Cengage Learning Commonly Found Easements

© 2012 Cengage Learning Encroachments The unauthorized intrusion of a building or other improvement onto another person’s land.

© 2012 Cengage Learning Commonly Found Encroachments

© 2012 Cengage Learning Deed Restrictions Private agreements that govern the use of land are known as deed restrictions or deed covenants.

© 2012 Cengage Learning Liens Property tax lien Mechanic’s lien Judgment lien Mortgage lien Voluntary & Involuntary liens Specific & General liens

© 2012 Cengage Learning Qualified Fee Estate Subject to certain limitations imposed by the person creating the estate Determinable Condition subsequent Condition precedent.

© 2012 Cengage Learning Life Estate Conveys an estate for the duration of someone’s life. The duration of the estate can be tied to the land of the life tenant (the person holding the life estate) or to a third party. Someone must be named to acquire the estate upon its termination.

© 2012 Cengage Learning Community Property Texas is a community property state along with nine others. A right that arises on marriage and terminates upon divorce or death. A legal theory that that during marriage each spouse has an equal interest in all property acquired by their joint effort.

© 2012 Cengage Learning Texas Homestead A constitutional right that is an exemption of your homestead from forced sale by creditors. Protection is automatic. Exemptions:  Purchase money mortgage  Taxes  Mechanics’ & materialmen’s liens  Federal tax liens  Refinancing homestead liens  Home equity liens  Reverse mortgages

© 2012 Cengage Learning Homestead Limitations Urban homestead is a lot or lots of not more than 10 acres together with any improvements. Rural homestead for a married couple is up to 200 acres and for a single person up to 100 acres.

© 2012 Cengage Learning  Banned for 150 years  Available since January 1, 1998 Home Equity Loans

© 2012 Cengage Learning Other Estates Freehold Estates Leasehold Estates  Estate for years  Periodic estate  Estate at will  Tenancy at sufferance

© 2012 Cengage Learning Subsurface Rights This is the dominant estate in Texas! Owner of mineral rights can reasonably enter upon the property to extract the minerals. Minerals are real property until they are removed from the ground and become personality.

© 2012 Cengage Learning Cross section of Estates & Rights in Land

© 2012 Cengage Learning Rights and Interests in Land Overview

© 2012 Cengage Learning Key Terms Fee simple Homestead protection Lien Title Chattel Easement Eminent domain Encroachment Encumbrance