1. © 2009 by South-Western, Cengage Learning SAMIRLANDER Chapter 8

2. Florida Real Estate: Principles, Practices and License Law Chapter 8 Property Ownership © 2009 by South-Western, Cengage Learning

3. Key Terms Bundle of rights Chattel Common property Concurrent ownership Cond-op Condominium Cooperative Declaration of condominium Elective share Estate at will Estate for years Estate in severalty Estate in land Exempt property Fee Fee simple absolute Fee simple defeasible

4. © 2009 by South-Western, Cengage Learning Key Terms Fee simple estate Fixtures Freehold estate Holdover tenant Homestead Joint tenancy Land Leased property Leasehold Leasehold estates Life estate pur autre vie Life estates Monthly maintenance Owners association Partition Personal property Personalty Property

5. © 2009 by South-Western, Cengage Learning Key Terms Proprietary lease Real estate Real property Remainderman Reversionary interest Right of survivorship Separate property Statutory life estates Tenancy at sufferance Tenancy at will Tenancy by the entirety Tenants in common Time-shares

6. © 2009 by South-Western, Cengage Learning Property Ownership Feudal system: land ownership vested only with the Crown Leased property: Leased property: possessory right of the property

7. © 2009 by South-Western, Cengage Learning Property Ownership Estates were reversionary and defeasible Land owned by the Crown Individuals possessed rights only for their lifetime Estates were not inheritable

8. © 2009 by South-Western, Cengage Learning Property Ownership Allodial system Land vests with individual owners Inheritable estate

9. © 2009 by South-Western, Cengage Learning Real Property Composition

10. © 2009 by South-Western, Cengage Learning Real Property Composition

11. © 2009 by South-Western, Cengage Learning Real Property Composition

12. © 2009 by South-Western, Cengage Learning Real Property Composition

13. © 2009 by South-Western, Cengage Learning Real Property Composition

14. © 2009 by South-Western, Cengage Learning Real Property Composition

15. © 2009 by South-Western, Cengage Learning Real Property Composition

16. © 2009 by South-Western, Cengage Learning Real Property Composition

17. © 2009 by South-Western, Cengage Learning Real Property Composition Littoral rights: land adjoins a stationary body of water Riparian rights: land adjoins flowing bodies of water

18. © 2009 by South-Western, Cengage Learning Real Property Composition Flowing water: owner has right to limited nonexclusive use Property boundaries/riparian rights: Navigable: high water mark Not navigable: middle of watercourse

19. © 2009 by South-Western, Cengage Learning Real Property Composition

20. © 2009 by South-Western, Cengage Learning Real Property Composition

21. © 2009 by South-Western, Cengage Learning Real Property Composition

22. © 2009 by South-Western, Cengage Learning Real Property Composition Oil Gas Mineral rights Extend to center of earth’s core

23. © 2009 by South-Western, Cengage Learning Real Property Composition Total legal bulk of improvement made to land

24. © 2009 by South-Western, Cengage Learning Fixtures Become real property by utility and permanence Review items to remain with the seller

25. © 2009 by South-Western, Cengage Learning Fixtures

26. Fixtures

27. Fixtures M ethod of attachment Will removal result in damage? Adaptability Permanently attached? Intent of the parties Agreement in advance

28. © 2009 by South-Western, Cengage Learning Fixtures Installed and used in conduct of business Personal property Removed prior to expiration of lease Property returned to original condition

29. © 2009 by South-Western, Cengage Learning Fixtures Property is sold Fixtures remain Personal property does not remain Taxes Assessed Fixtures contribute to value = higher taxes

30. © 2009 by South-Western, Cengage Learning Fixtures Property is appraised Fixtures add value Personal property does not add value Insurance on real property Fixtures are covered Personal property covered separately

31. © 2009 by South-Western, Cengage Learning Types of Estates Freehold estates Nonfreehold estates Less than freehold

32. © 2009 by South-Western, Cengage Learning Types of Estates Interest in land held for an indefinite time Lifetime or longer Right of: Ownership Possession

33. © 2009 by South-Western, Cengage Learning Types of Estates Freely hold property Types of freehold estates Fee simple Fee simple absolute Fee simple defensible Life estates

34. © 2009 by South-Western, Cengage Learning Types of Estates Fee: ownership and all rights in land Leasehold Limited duration ownership Right of possession in the improvement

35. © 2009 by South-Western, Cengage Learning Types of Estates Characteristics: Held for lifetime or longer Inheritable Fee Simple Absolute Most common and desirable

36. © 2009 by South-Western, Cengage Learning Types of Estates Fee Simple Absolute Characteristics: Least restrictive Limited only by government rights Nondefeasible

37. © 2009 by South-Western, Cengage Learning Types of Estates Fee Simple Defeasible Conditions If conditions are violated: Rights of ownership can be defeated “but if”

38. © 2009 by South-Western, Cengage Learning Types of Estates Characteristics Held for a lifetime Not inheritable : life estate pur autre vie Exception: life estate pur autre vie Lifetime of 3 rd party Reversionary

39. © 2009 by South-Western, Cengage Learning Types of Estates 3 types of voluntary life estates Life estate in remainderRemainderman

40. © 2009 by South-Western, Cengage Learning Types of Estates Life estate in reversion

41. © 2009 by South-Western, Cengage Learning Types of Estates Life estate by reversion

42. © 2009 by South-Western, Cengage Learning Types of Estates Dower: wife’s right to husbands property upon death Curtsey: husband’s right to wife’s property upon death Homestead protection: life estate to surviving spouse

43. © 2009 by South-Western, Cengage Learning Types of Estates Freehold: ownership Nonfreehold: leased Leasehold estates Tenant: Lessee Landlord: Lessor

44. © 2009 by South-Western, Cengage Learning Types of Estates Rights of the parties Tenant may occupy with a valid lease Abides by terms Pays rent Is not in default

45. © 2009 by South-Western, Cengage Learning Types of Estates Rights of the parties Landlord may not occupy reversionary estate Landlord has a reversionary estate Reclaims property upon termination of the lease

46. © 2009 by South-Western, Cengage Learning Types of Estates Estate for years Starting and ending date Estate at will Tenancy at will No specified term 3 Categories

47. © 2009 by South-Western, Cengage Learning Types of Estates Estate at Sufferance Tenancy at Sufferance Tenant remains in possession beyond legal term without consent Holdover tenant 3 Categories

48. © 2009 by South-Western, Cengage Learning Types of Estate Estates Freehold EstatesLess- than Freehold Estates Estates in feeLife Estates Fee simple absolute Estates in: Remainder Reversion Reservation Fee simple qualified Estates for years Estate from period to period Estate at will Estate at sufferance

49. © 2009 by South-Western, Cengage Learning Types of Estates Ownership and Possession Possession Only Lifetime or Longer Less than a Lifetime

50. © 2009 by South-Western, Cengage Learning Forms of Ownership Estate in severalty: Estate in severalty: one person Severalty: severed

51. © 2009 by South-Western, Cengage Learning Forms of Ownership Four Types Joint tenancy Tenancy in common Tenancy by the entirety Community property

52. © 2009 by South-Western, Cengage Learning Forms of Ownership Right of survivorship Not willable / inheritable Four unities Time Interest Title Possession

53. © 2009 by South-Western, Cengage Learning Forms of Ownership ossession nterest ime itle urvivorship P I T T S

54. © 2009 by South-Western, Cengage Learning Forms of Ownership May sell without consent of other joint tenants New owner becomes a tenant in common Corporations have perpetual life May not own as joint tenants

55. © 2009 by South-Western, Cengage Learning Forms of Ownership Unity of possession Separate title May sell without consent of others No right of survivorship Inheritable

56. © 2009 by South-Western, Cengage Learning Forms of Ownership Yes Unity of Possession YesYes Unity of Interest No Yes Unity of Time No Yes Unity of Title No YesSurvivorshipNo

57. © 2009 by South-Western, Cengage Learning Forms of Ownership Reserved for husband and wife Four unities: Possession Interest Title Time 5 th Unity - marriage

58. © 2009 by South-Western, Cengage Learning Forms of Ownership Right of survivorship Neither spouse may encumber or sell without consent of other Terminated by: Joint action Divorce Death of either spouse

59. © 2009 by South-Western, Cengage Learning Forms of Ownership Equal interest in property acquired during marriage Not community property: Acquired before marriage After marriage through : Gift Will Florida is not community property state

60. © 2009 by South-Western, Cengage Learning Forms of Ownership Partition: Partition: dividing of common interests into separate interests Two methods Partition in kind Partition in law Two ways: Voluntary agreement Court

61. © 2009 by South-Western, Cengage Learning Forms of Ownership Special interests in Florida Elective share Exempt properties Homestead

62. © 2009 by South-Western, Cengage Learning Forms of Ownership Elective Share Surviving spouse entitled to a share of deceased estate Share is 30% in Florida

63. © 2009 by South-Western, Cengage Learning Forms of Ownership Exempt Property Upon death, surviving spouse is automatically entitled to personal property Property up to $10,000 plus automobiles

64. © 2009 by South-Western, Cengage Learning Forms of Ownership Homestead Must reside in home Legal title as of Jan 1 File for exemption

65. © 2009 by South-Western, Cengage Learning Forms of Ownership Homestead Relief from debt except those from: Property taxes Special assessments Mortgages Vendor liens Construction liens

66. © 2009 by South-Western, Cengage Learning Forms of Ownership Homestead Exemption Annual property tax exemption Credit against tax bill Maximum amount: $25,000

67. © 2009 by South-Western, Cengage Learning Forms of Ownership Homestead Exemption Example: $ 100,000 Assessed Value - 25,000 Homestead Exemption $75,000 Value subject to tax

68. © 2009 by South-Western, Cengage Learning Community Ownership Four Types Condominiums Cooperative Planned-unit development Resort time-sharing

69. © 2009 by South-Western, Cengage Learning Community Ownership “city within a city” Self-government Assessments of common area maintenance Provision for services

70. © 2009 by South-Western, Cengage Learning Community Ownership Fee simple title to an individual unit Separate property Undivided interest in remaining elements Common area

71. © 2009 by South-Western, Cengage Learning Community Ownership Common Property Land Interior and exterior walls Other improvements Hallways and stairs Recreation areas and landscaping Parking lots

72. © 2009 by South-Western, Cengage Learning Community Ownership Created by: New construction Conversion

73. © 2009 by South-Western, Cengage Learning Community Ownership Types of condo properties: High-rise buildings Garden apartments Townhomes Warehouses Office building Detached single family homes

74. © 2009 by South-Western, Cengage Learning Community Ownership Enabling legislation: Horizontal Property Act Strata Title Act Condominium Act Provides for horizontal subdivision of air space Florida Condominium Act Chapter 718

75. © 2009 by South-Western, Cengage Learning Community Ownership Master deed Ownership to individual units transferred by deed Ownership rights: Sell Sublease Gift Will

76. © 2009 by South-Western, Cengage Learning Community Ownership Owners association Control, regulate and maintain common areas Fees or carrying charges Common area maintenance Insurance Management / legal fees Common area property tax Reserves

77. © 2009 by South-Western, Cengage Learning Community Ownership Separate property tax bill Financing No joint liability Maintenance Common areas: Owners association Individual units: Individual owners

78. © 2009 by South-Western, Cengage Learning Community Ownership Florida Condominium Act Declaration of condominium Bylaws Plat map Conveyance document

79. © 2009 by South-Western, Cengage Learning Community Ownership Disclosures Right to rescind: New – 15 days Resale – 3 days Refund of deposit

80. © 2009 by South-Western, Cengage Learning Community Ownership Title to land, building, and improvements held by not-for-profit corporation Purchase shares of stock Proprietary lease: Proprietary lease: occupancy agreement Monthly maintenance

81. © 2009 by South-Western, Cengage Learning Community Ownership Corporation pays: Mortgage Property tax Repairs / maintenance Management expenses

82. © 2009 by South-Western, Cengage Learning Community Ownership Allocation of shares Square footage of unit Location Exposure Floor height View and outdoor space Balcony Terrace

83. © 2009 by South-Western, Cengage Learning Community Ownership Board may: Screen shareholders Reject any sale Grant permission to transfer shares Approve or deny subleasing Charge flip tax

84. © 2009 by South-Western, Cengage Learning Community Ownership Cooperative Act disclosures: Legal description Common area description Title held Liens Easements Lawsuits Judgments Manager Date completed Operating statements / budgets Sale / resale procedures

85. © 2009 by South-Western, Cengage Learning Community Ownership 80/20 Rule Collection of rents: Retail space Garage rents Cellular antennae Satellite dish Vending machines Other

86. © 2009 by South-Western, Cengage Learning Community Ownership Condo-op Condo ownership in land Owners association Developer ownership in land for commercial space Retail space Garage

87. © 2009 by South-Western, Cengage Learning Community Ownership Cooperative setup / Condominium bylaws Sale / leasing flexibility Maintenance tax benefits Per share deduction of mortgage interest Tax benefit creates marketing tool 80/20 eliminated

88. © 2009 by South-Western, Cengage Learning Community Ownership Individually owned homes and ownership of common areas Association owns common areas Unit owners own share of association

89. © 2009 by South-Western, Cengage Learning Community Ownership Created by local zoning laws Smaller lots increase density Developer creates common areas Single family detached dwellings Attached townhomes

90. © 2009 by South-Western, Cengage Learning Community Ownership Time shares Resort property Unit ownership for a specified period Organized 3 ways Right-to-use Interval ownership Club plan

91. © 2009 by South-Western, Cengage Learning Community Ownership Florida Time-Share Act Sales associates must be licensed 10 day right to rescind Timeshare registered with SEC are exempt