1. Real Estate Principles and Practices Chapter 2 Land: Its Characteristics and Acquisition © 2014 OnCourse Learning

2. Key Terms Accretion Ad valorem tax Adverse possession Allodial system Avulsion Bundle of rights Chattel Codicil Color of title Descent Devise Doctrine of prior appropriation Durability Easement by prescription Eminent domain

3. © 2014 OnCourse Learning Key Terms Escheat Feudal system Fixtures Hereditaments Immobility Indestructible Intestate Involuntary alienation Land Land patent Littoral rights Mill Nonhomogeneous Personal property Police power Probate Profit a prendre

4. © 2014 OnCourse Learning Key Terms Quiet title action Real estate Real property Riparian rights Scarcity Situs Tenements Testate Voluntary alienation

5. © 2014 OnCourse Learning Overview Feudal vs. Allodial Physical & Economic Characteristics Real vs. Personal Property Real Property, Government, & Personal Property Rights Acquiring and Loss of Ownership Ownership and land transfer unchanged

6. © 2014 OnCourse Learning Evolution of Landownership Feudal System: Feudal System: King controls all the land King granted charters in North America Independence – opportunity for private land ownership

7. © 2014 OnCourse Learning Evolution of Landownership Allodial System: Allodial System: right to own land by individuals Homestead Act Land patent: Land patent: document used to transfer land from the government to private individual

8. © 2014 OnCourse Learning Characteristics of Land

9. © 2014 OnCourse Learning Physical Characteristics ImmobilityIndestructibleNonhomogeneityNonfungible

10. © 2014 OnCourse Learning Economic Characteristics ScarcitySitusDurability

11. © 2014 OnCourse Learning Economic Characteristics

12. © 2014 OnCourse Learning Real Property Rights HereditamentsLand Real Estate Real Property Tenements Corporeal rights Incorporeal rights

13. © 2014 OnCourse Learning Real Property Rights Bundle of Rights: Bundle of Rights: Possession and use of land to the exclusion of others Possess, exclude, sell, lease, mortgage, give away, exchange, and will Rights may be sold or leased separately

14. © 2014 OnCourse Learning Real Property Rights Surface Rights: Surface Rights: visible structures and cultivation of the land Subsurface Rights: Subsurface Rights: Right to drill for oil or gas, dig for gravel and sand, or extract minerals Profit a prendre: Profit a prendre: right to use and extract from the land of another Air Rights: Air Rights: above the property

15. © 2014 OnCourse Learning Real Property Rights riparian rights Moving body of water – riparian rights Share the use May not dam Reasonable use Nonnavigable: middle of the steam Water shortage – 1 st priority - household use

16. © 2014 OnCourse Learning Real Property Rights littoral rights Nonmoving body of water – littoral rights Own to high water mark Use and enjoy may not divert Doctrine of prior appropriation: Doctrine of prior appropriation: first owner is privileged with first claim

17. © 2014 OnCourse Learning Real Property Rights Groundwater: Groundwater: in the earth beneath the saturation point Percolating water: Percolating water: found underground Floodwaters: Floodwaters: overflow a body of water Tidelands: Tidelands: shoreline affected by tides

18. © 2014 OnCourse Learning Real Property Rights Accretion: slow buildup of soil Alluvion: the land gained by accretion Avulsion: sudden washing away of land Reliction: land exposed as water recedes Erosion: gradual land loss through nature

19. © 2014 OnCourse Learning Rights of Government olice powers minent domain axation scheat

20. © 2014 OnCourse Learning Rights of Government Constitution provides for collection of taxes for general welfare and defense of the nation Property Taxes pay for services Services enhance values Location determines cost of tax Other revenues reduce property tax Ad valorem tax: Ad valorem tax: according to value

21. © 2014 OnCourse Learning Rights of Government Mill: Mill: Tax expressed in dollars 1/10 th of 1 cent $80,000 X.35 $28,000 X.080 $ 2,200 Appraised Value % of taxation Assessed value Mill levy Taxes

22. © 2014 OnCourse Learning Rights of Government Tax expressed in dollars $2.75 per $100 of appraised value $80,000 X.0275 $ 2,200 Appraised Value Per $100 of value Taxes

23. © 2014 OnCourse Learning Rights of Government Cost to pay for improvements Levied against property adjacent to the improvements Front footage

24. © 2014 OnCourse Learning Rights of Government Government right to take private property for public use “just compensation” Condemnation proceedings: act of taking the property

25. © 2014 OnCourse Learning Rights of Government

26. © 2014 OnCourse Learning Rights of Government

27. © 2014 OnCourse Learning Rights of Government

28. © 2014 OnCourse Learning Rights of Government

29. © 2014 OnCourse Learning Rights of Government Restrictions and controls imposed by local government Zoning Building codes Subdivision regulations Traffic regulations Environmental protection laws

30. © 2014 OnCourse Learning Personal Property vs. Real Property Real Estate AKA: Realty Real property Personal Property AKA: PersonaltyChattel

31. © 2014 OnCourse Learning Personal Property vs. Real Property

32. © 2014 OnCourse Learning Personal Property vs. Real Property Fructus naturales, or fruits of nature, that grow continuously and do not need annual cultivation are considered by law to be real estate. Fructus industriales, or emblements, are annual crops, vegetables, fruits, and grains, and are personal property.

33. © 2014 OnCourse Learning Personal Property vs. Real Property Personal property that becomes real property when attached

34. © 2014 OnCourse Learning Personal Property vs. Real Property Items installed by a tenant for use in a trade or business If not removed, owner acquires the fixtures through accession

35. © 2014 OnCourse Learning Personal Property vs. Real Property Leasehold improvement: fixture installed by the landlord Remain with property Trade fixtures are removable by the tenant

36. © 2014 OnCourse Learning Acquiring Ownership: Voluntary Alienation Owner voluntarily sells to purchaser

37. © 2014 OnCourse Learning Acquiring Ownership: Voluntary Alienation

38. © 2014 OnCourse Learning Acquiring Ownership: Voluntary Alienation

39. © 2014 OnCourse Learning Acquiring Ownership: Voluntary Alienation

40. © 2014 OnCourse Learning Acquiring Ownership: Voluntary Alienation

41. © 2014 OnCourse Learning Acquiring Ownership: Voluntary Alienation

42. © 2014 OnCourse Learning Losing Ownership Rights: Involuntary Alienation

43. © 2014 OnCourse Learning Losing Ownership Rights: Involuntary Alienation

44. © 2014 OnCourse Learning Losing Ownership Rights: Involuntary Alienation