1. Florida Real Estate Principles, Practices & Law 39th Edition
Unit 8: Property Rights: Estates and Tenancies, Condominiums, Cooperatives, and Time-Sharing

2. Land, Real Estate, and Real Property
Surface and everything attached to it by nature (earth’s center to infinity)
Real estate
Land and human-made improvements
Real property
Real estate plus the legal bundle of rights

3. Definition of Real Property, F.S. 475
Real property or real estate means any interest or estate in land and any interest in business enterprises or business opportunities
Includes mineral rights
Does not include cemetery lots nor the renting of a mobile home lot or recreational vehicle lot in a mobile home park or travel park

4. Physical Components of Land
Surface rights include land and water rights
Riparian rights
Littoral rights
Subsurface rights also referred to as mineral rights
Air rights involve space above

5. Riparian vs. Littoral Rights
Riparian rights associated with land abutting moving water
Banks of a river or stream
Littoral rights associated with land abutting tidal bodies of water
Oceans and seas
Ponds and lakes
Water is not flowing

6. Definitions Associated with Water Rights
Accretion
Process of land buildup from water-borne rock, sand, and soil
Alluvion
New deposits resulting from accretion
Erosion
Loss in land due to natural forces
Reliction
Receding of water, uncovering additional land

7. Real vs. Personal Property
Two basic types of property
Real property (realty)
Personal property (chattel)
Personalty indicates personal property
Real property becomes personal property by act of severance
Personal property becomes real property by attachment

8. Fixtures
Fixture—was personal property, now permanently attached to or made part of the real property
Intent of the parties
Relationship or agreement of the parties
Method or degree of attachment
Adaptation of the item

9. Basic Property Rights Disposition Enjoyment Exclusion Possession
“C”ontrol

10. Estates and Tenancies
The degree, quantity, nature, and extent of the interest (ownership rights)
Two general groups
Freehold – indefinite length (unknown) duration
Leasehold – (nonfreehold) fixed (known) duration

11. Freehold Estates
Ownership interest for an indefinite period (unknown duration)
Two types
Fee Simple – inherited
Life Estate – measured by a person’s life span

12. Freehold Estate Fee simple Most comprehensive
Absolute and complete ownership
Can be inherited
Also, fee or fee simple absolute
Power to use, dispose, descend to heirs

13. Freehold Estate
Life Estate - own property for the period of a lifetime (the owner’s or other designated person)
Conventional life estate created by the person who holds title
Legal life estates created by law; homesteaded property

14. Freehold Estate Life Estate Estate in reversion Remainder estate
Property reverts to the original grantor
Remainder estate
Property goes to remainderman
Vested (named)
Contingent (name not specified)

15. Homestead Right to homestead permanent (principal) residence
Protections and benefits
Protection of the family (legal life estate)
Protection of homestead from forced sale
Tax exemption of up to $50,000
Size restriction of protected homestead is 160 acres outside city or .5 acre within city
Personal property protection ($1,000 value)

16. Nonfreehold or Leasehold Estates
Measured in calendar time (known duration)
Not freehold because it does not exist for an indefinite period
Nonfreehold or less-than-freehold
Not an ownership interest
Transfer of use and possession rights for a period of time

17. Leasehold Estates Estate for years (tenancy for years)
Specific starting and ending date (designated period)
Created by written lease agreement
Establishes tenant interest in property but does not convey legal title

18. Leasehold Estates Tenancy at will
Lease agreement with a beginning date but no fixed termination date
Tenancy without specific term
Notice to terminate set in statute
Week to week: 7 days notice
Month to month: 15 days notice

19. Leasehold Estates Tenancy at sufferance
Tenant stays in possession of property beyond ending date and without landlord’s consent
Tenant holds over
If with written consent of landlord, then it becomes a tenancy at will

20. Sole and Concurrent Ownership
In Severalty
Property is held by one person
Sole ownership
“Severed” ownership
Concurrent Ownership
Concurrent ownership Two or more persons own property at the same time
Three types
Tenancy in common
Joint tenancy
Tenancy by the entireties

21. Tenancy in Common Two or more people
Acquire title at same or different times
Undivided interest (interest in whole property)
Equal or unequal shares of ownership
Heirs inherit (no right of survivorship)

22. Joint Tenancy
Right of survivorship—share of a co-owner who has died goes to surviving co-owner(s), not to heirs
Four unities
Possession—undivided
Interest—equal ownership interest
Title—acquire title on same deed
Time—acquire interests at same time
Specific wording in the deed must provide for survivorship

23. Tenancy by the Entireties
Husband and wife only
Must be married to each other when they take title
Four unities of a joint tenancy must exist
Actions affecting property require consent of both spouses
When one spouse dies, ownership interest transfers to surviving spouse by right of survivorship

24. Cooperatives (F.S. 719) Multi-family building owned by corporation
Unit owners purchase shares of stock
Stock ownership entitles purchaser to a proprietary lease and right to occupy
Property taxes assessed on each unit
Owners can deduct real estate taxes and mortgage interest
Shareholders pay a pro rata share of property taxes and the corporation pays the tax bill

25. Cooperative Disclosures and Cancellation
Disclosure in contract with developer
Buyer has right to cancel within 15 calendar days of signing contract and receipt of cooperative documents
Disclosure in resale contract, either
Buyer has received documents at least 3 business days before signing, or
Buyer has right to cancel within 3 business days of signing contract and receipt of cooperative documents

26. Condominiums (F.S. 718) Consists of condo units and common elements
Own condo unit in fee simple plus an undivided fractional share of common elements
Deed conveys ownership
Common elements legally attached to each unit and transfer with unit
Property taxes levied on individual units

27. Condominium Documents
Declaration of condominium
Condo is created by recording
Articles of incorporation
Bylaws of the association
Operational requirements, rules and regulations
FAQ
Information regarding leasing units, assessments
Estimated operating budget

28. Disclosures and Cancellation Period
Developers
File condo documents with Division of Florida Condominiums, Timeshares, and Mobile Homes
20+ units also file a prospectus
Copy of prospectus and condo docs must be given to prospective purchasers
Purchaser has 15 calendar days to cancel contract
After signing contract and
Receiving condo docs

29. Disclosures and Cancellation Period
Resale purchase disclosures
Declaration
Articles of incorporation
Bylaws
Rules of association
FAQs
Most recent year-end financial information
Governance form
3 business days to cancel contract
After signing contract and receiving docs

30. Time-Sharing (F.S. 721)
Units are divided into time segments of ownership, usually 52 weeks
Deeds or other ownership evidences are prepared for each ownership segment
Statutory disclosure—10 days to cancel

31. Listing Agreement Required Disclosure
FREC requires written disclosure in listings, advertisements, and sale contracts:
No guarantee of time share sale
In addition, it is illegal to collect an advance fee for a time share listing

32. Time-Share Ownership Interval ownership—fee simple ownership
Fractional interest transferred by deed
Right-to-use
Usage of time-share is limited to a certain number of years
Ownership of time-share remains with developer