Law for Business and Personal Use © South-Western, a part of Cengage LearningSlide 1 Chapter 18 Ownership and Leasing of Real Property Chapter 18 Ownership and Leasing of Real Property Ownership and Transfer of Real Property Leasing Real Property

Law for Business and Personal Use © South-Western, a part of Cengage LearningSlide 2 Chapter Ownership and Transfer of Real Property GOALS Understand both the rights and limitations associated with ownership of real property Identify the forms of ownership and how they are transferred

Law for Business and Personal Use © South-Western, a part of Cengage LearningSlide 3 Chapter 18 RIGHTS AND LIMITATIONS OF REAL PROPERTY OWNERSHIP Real property rights Surface rights Rights to the air space above the land Mineral rights Water rights Continued on the next slide

Law for Business and Personal Use © South-Western, a part of Cengage LearningSlide 4 Chapter 18 RIGHTS AND LIMITATIONS OF REAL PROPERTY OWNERSHIP Limitations on ownership Easements Restrictive covenants Zoning ordinances Duties owed to entrants on land

Law for Business and Personal Use © South-Western, a part of Cengage LearningSlide 5 Chapter 18 List four potential limitations on the ownership rights of real property.

Law for Business and Personal Use © South-Western, a part of Cengage LearningSlide 6 Chapter 18 OWNERSHIP FORMS AND THEIR TRANSFER Forms of real property ownership Fee simple absolute Conditional estate Life estate Non-freehold estate Continued on the next slide

Law for Business and Personal Use © South-Western, a part of Cengage LearningSlide 7 Chapter 18 OWNERSHIP FORMS AND THEIR TRANSFER Transfer of ownership Deed Gift, sale, or inheritance Adverse possession Dedication or eminent domain

Law for Business and Personal Use © South-Western, a part of Cengage LearningSlide 8 Chapter 18 Name the four major types of estates in real property.

Law for Business and Personal Use © South-Western, a part of Cengage LearningSlide 9 Chapter Leasing Real Property GOALS Compare the various types of leases Explain the rights and duties of landlords and tenants

Law for Business and Personal Use © South-Western, a part of Cengage LearningSlide 10 Chapter 18 WHAT ARE THE TYPES OF LEASES? Periodic tenancy Tenancy for years Tenancy at sufferance Tenancy at will

Law for Business and Personal Use © South-Western, a part of Cengage LearningSlide 11 Chapter 18 Name the four types of leaseholds.

Law for Business and Personal Use © South-Western, a part of Cengage LearningSlide 12 Chapter 18 RIGHTS AND DUTIES OF THE TENANT Tenant’s rights Right of possession Right to use the property Right to assign the lease or to sublet the premises Tenant’s duties Duty to pay rent Duty to take care of the property Responsibility for torts

Law for Business and Personal Use © South-Western, a part of Cengage LearningSlide 13 Chapter 18 RIGHTS AND DUTIES OF THE LANDLORD Landlord’s rights To receive agreed-upon rent To sue to evict tenant Landlord’s duties Duty to provide habitable premises Duty to conform to governmental requirements

Law for Business and Personal Use © South-Western, a part of Cengage LearningSlide 14 Chapter 18 Name three rights a tenant has.

Law for Business and Personal Use © South-Western, a part of Cengage LearningSlide 15 Chapter 18 PREVENT LEGAL DIFFICULTIES In dealing with real property... If your personal property is to be attached to real property in any transaction, agree who will retain or receive ownership of it. Put the agreement in writing, whether the contract involved is a sale, lease, or mortgage. Continued on the next slide

Law for Business and Personal Use © South-Western, a part of Cengage LearningSlide 16 Chapter 18 PREVENT LEGAL DIFFICULTIES When purchasing real property, protect your interest by having the property properly surveyed, particularly if it is irregularly shaped or has uncertain borders requiring a deed containing all possible warranties securing title insurance if it is available being represented by a professional. If there is anything distinctive about the transaction, use a lawyer who specializes in real estate Be sure that any deed to land you have purchased is recorded promptly. Continued on the next slide

Law for Business and Personal Use © South-Western, a part of Cengage LearningSlide 17 Chapter 18 PREVENT LEGAL DIFFICULTIES To prevent losing your land through adverse possession check it periodically to be sure no one is occupying it without your consent. If you are asked to convey property and want to be free of possible future obligations, use a quitclaim instead of a warranty deed. Continued on the next slide

Law for Business and Personal Use © South-Western, a part of Cengage LearningSlide 18 Chapter 18 PREVENT LEGAL DIFFICULTIES If the government seeks to take your land by condemnation under its right of eminent domain, consult a lawyer. You have a right to a trial by jury to determine the fair price that must be paid. Written residential leases generally are prepared by the landlord or the landlord’s attorney. Thus, such leases often contain many clauses that protect the landlord’s interests. Read with understanding before you sign. If the terms are unacceptable to you, request a change. If you are refused, go elsewhere. Continued on the next slide

Law for Business and Personal Use © South-Western, a part of Cengage LearningSlide 19 Chapter 18 PREVENT LEGAL DIFFICULTIES Do not remodel or significantly change premises of a leasehold without the consent of your landlord. You may be held liable if someone is injured because of the faulty condition of premises you have rented if such condition was caused by your negligence. Normally you, as a tenant, have the duty to make necessary minor repairs and to notify your landlord of the need for major repairs. Protect yourself with careful maintenance and with adequate liability insurance. Continued on the next slide

Law for Business and Personal Use © South-Western, a part of Cengage LearningSlide 20 Chapter 18 PREVENT LEGAL DIFFICULTIES When you move, give your landlord proper notice. Such notice is required in periodic tenancies. Failure to give adequate notice may obligate you to pay additional rent even after you vacate the premises.