1. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Chapter 7 Real Estate Property Rights, Fixtures and Ownership

2. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Major Topics  What is real property?  Legal methods of Property description  Holding title to the real property  Property owner rights  Surface, Water, Air  Duration of ownership  Fixtures  Subsurface  Forms of ownership

3. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner  Surface of Land  Attachments to that surface  Area beneath surface  Rights in the air Real Property Includes More Than Just Land

4. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Water Rights  Riparian System  Doctrine of prior appropriation  The state owns the land ownership of land located beneath the river

5. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Fixtures  Items that are attached to real property and have become integral part of the building’s function  An item classified as fixture is transferred as part of real property  Determining whether an item is a fixture or not:  Intent  Attachment  Uniqueness or adaptation to the property  Ownership

6. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Subsurface Rights  Mineral Rights  Oil and Gas Air Rights Right to Light

7. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Legal Description Necessary for Transfer of Property  Importance of legal descriptions  Metes and Bounds System  Rectangular Survey System  Plat Maps and Survey  G.P.S.

8. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Metes and Bounds

9. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Rectangular Survey System

10. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Plat Maps and Survey  Most common in major urban areas, esp. residential  A survey is done to establish the proposed land development  The general shape of the lot is drawn on the plat map  The Plat map is typically recorded in the local county courthouse and a book and plat number assigned

11. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Plat Map Illustrated 12345 67 8910 120.6’ 175.5’175.8’ 120.9’ Casey Hambleton Lane For Apple Orchid Plat #389 Book# 210 Page 17

12. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Geographic Positioning Systems  Latitudes and Longitudes  G.P.S. (Global Positioning System) accuracy of 2 feet

13. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner The Freehold Estates  Fee simple or Fee simple absolute  Fee simple determinable  Fee simple subject to a condition subsequent  Fee simple defensibles  Life estate  Tax benefits

14. Co-Ownership & Business Ownership “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner  Tenants in common  Joint tenancy  Tenancy by the entirety  Community Property  Trust  Multi-Unit Ownership  Condominiums and Landominiums  Cooperative  Townhouses or Landominiums  Time Sharing  Business (Investors):  General Partnerships  Limited Partnerships  Corporations and S-Cooperations  Limited Liability Corporations  Real Estate Investment Trusts

15. Tenancies in Common “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner  ‘Tenants in common’ hold title together to same property  Each has an individual interest in the property

16. Joint Tenancies “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner  Four unities of a joint tenancy:  Time, Title, Interest & Possession  Joint tenants must own equal shares  Joint tenants must have equal right of possession

17. Tenancy by the Entirety “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner  A joint tenancy with one additional unity: Marriage  A tenancy by the entirety with right of survivorship between husband and wife  Not recognized by all states of U.S.

18. Community Property “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner  A system of marital property ownership (Spanish origin)  Both spouses contribute equally to the benefit of the property as “community property” Trust  Three-party arrangement in which legal and equitable title to property are separated  Owner (trustor) transfers title to trustee with the responsibility of administering the property and distributing income to the beneficiaries of the trust

19. Condominiums “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner  A condominium owner holds a ‘fee simple’ interest in the unit he/she occupies  Right to sell, lease, mortgage and convey by will the condominium interest  When the development includes separate fee simple ownership of lots upon which the condominium unit is placed and also shared common areas, the it is referred as “landominium”  Created by CCR

20. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Cooperatives  The dwellers of a multi-housing own an undivided interest in their unit through their ownership of a corporation (shares) that owns the entire land and building  Cooperative affords existing owners more control over the transfer of the units

21. Time-Sharing Properties “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner  A time share interest in real property for a limited duration at a fixed time each year (recreational lease)  Most commonly seen in resort areas to allow the exclusive use of the premises for vacational purposes

22. General Partnerships “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner  Partnership (UPA): “voluntary association of two or more persons as co-owners in a business for profit”  Partnership (IRS): “a syndicate, group, pool, joint venture, or other unincorporated association”

23. Limited Partnerships “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner  At least one partner has full and complete liability and is known as “general partner”  Liability of other “limited partners” is limited to their capital contribution to the partnership

24. Corporations “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner  A corporation is a non-human entity with permanent legal existence and is owned by individual investors S Corporation  Internal Revenue Code permits slight variation on the “double taxation” by flowing its income and losses through its shareholders

25. Limited Liability Companies (LLC) “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner  A statutorily-created entity offering limited liability of corporation and flow-through advantage of partnership  Pays no federal taxes on its income. All income and losses flow through owners (members/shareholders)

26. REITs “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner  Real Estate Investment Trust: A statutory entity that permits investors to hold diversified real estate holdings by being beneficiaries in a trust  REITs might be “public” or “private”

27. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Non-Possessory Interests in Land  Easements  Profits  License  Security  Liens  Covenants and Deed Restrictions

28. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Easements “A right to another’s property”  Easement appurtenant  Easement in gross  Express easement  Implied easement (or Easement by necessity)  Easement by prescription road Easement across A Servient Tenement A Dominant Tenement B Water

29. END “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner