1. Chapter 49 Real Property Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

2. Real Property (Definition): Land, including anything permanently affixed to the land 49-2

3. “Fixture” (Definition): Any item that was originally a piece of personal property, but became part of realty after it became permanently attached to real property 49-3

4. Exceptions To “Fixture” Status: Written agreement between parties that specific items will continue to be treated as personal property Written agreement between parties that specific items will continue to be treated as personal property Personal property attached to realty for use of a business renting property (in a commercial lease arrangement) Personal property attached to realty for use of a business renting property (in a commercial lease arrangement) Such property is known as a “trade fixture” Such property is known as a “trade fixture” Example: Barber chairs in a barber shop Example: Barber chairs in a barber shop 49-4

5. Interests In Real Property Fee Simple Absolute: Right to possess for life and devise (will) to heirs upon death; the most complete interest in real property Fee Simple Absolute: Right to possess for life and devise (will) to heirs upon death; the most complete interest in real property Conditional Estate: Interest comparable to fee simple absolute, except that interest will terminate on occurrence/non- occurrence of a specified condition Conditional Estate: Interest comparable to fee simple absolute, except that interest will terminate on occurrence/non- occurrence of a specified condition Life Estate: Granted for lifetime of an individual; right to possess property terminates upon life estate holder’s death, and property will pass to another party designated by original grantor Life Estate: Granted for lifetime of an individual; right to possess property terminates upon life estate holder’s death, and property will pass to another party designated by original grantor 49-5

6. Interests In Real Property (Continued) Future Interest: Person’s right to property ownership and possession in the future Future Interest: Person’s right to property ownership and possession in the future Leasehold Estate: Right to possess property for a stipulated period of time Leasehold Estate: Right to possess property for a stipulated period of time Easement: Irrevocable right to use a portion of another’s land for a specified purpose Easement: Irrevocable right to use a portion of another’s land for a specified purpose 49-6

7. Nonpossessory Estates Easement: Irrevocable right to use some part of another’s land for a specific purpose without taking anything from the land Easement: Irrevocable right to use some part of another’s land for a specific purpose without taking anything from the land Example: Utility easement Example: Utility easement Profit: Right to enter another’s land and take part of the land, or take away a product of it Profit: Right to enter another’s land and take part of the land, or take away a product of it Example: Right to harvest timber Example: Right to harvest timber License: Temporary, revocable right to use another’s property License: Temporary, revocable right to use another’s property Example: Theatre ticket Example: Theatre ticket 49-7

8. Co-Ownership Of Real Property Tenancy In Common: Equal/unequal shares may be held, creditors can attach any owner’s interest, and deceased owner’s share is transferred to heirs Tenancy In Common: Equal/unequal shares may be held, creditors can attach any owner’s interest, and deceased owner’s share is transferred to heirs Joint Tenancy: Equal share, creditors can attach any owner’s interest, and deceased owner’s share reapportioned equally among surviving joint tenants Joint Tenancy: Equal share, creditors can attach any owner’s interest, and deceased owner’s share reapportioned equally among surviving joint tenants Tenancy By The Entirety: Available to married couples only; shares are equal, one owner’s creditors cannot attach property, and deceased owner’s share passes to surviving spouse Tenancy By The Entirety: Available to married couples only; shares are equal, one owner’s creditors cannot attach property, and deceased owner’s share passes to surviving spouse 49-8

9. Co-Ownership Of Real Property (Continued) Condominium Ownership: Owner acquires title to a “unit” within a building, with undivided interest in the land, buildings, and improvements of the common areas of the development Condominium Ownership: Owner acquires title to a “unit” within a building, with undivided interest in the land, buildings, and improvements of the common areas of the development Cooperative Ownership: Investor resident acquires stock in the corporation owning the facility and receives a permanent lease on one unit of the facility Cooperative Ownership: Investor resident acquires stock in the corporation owning the facility and receives a permanent lease on one unit of the facility 49-9

10. Voluntary Transfer of Real Property Requires: Requires: Execution—preparation and signing of deed; Execution—preparation and signing of deed; Delivery—of deed to grantee, with intent of transferring ownership to grantee; Delivery—of deed to grantee, with intent of transferring ownership to grantee; Acceptance—grantee’s expression of intent to possess and own property Acceptance—grantee’s expression of intent to possess and own property Recording—filing deed with appropriate county office to protect interests of grantee Recording—filing deed with appropriate county office to protect interests of grantee 49-10

11. Deed Requirements Identification of grantor Identification of grantor Expression of grantor’s intent to convey the property Expression of grantor’s intent to convey the property Legally sufficient description of the property (including its physical boundaries and any easements) Legally sufficient description of the property (including its physical boundaries and any easements) Any warranties/promises made by grantor with the conveyance Any warranties/promises made by grantor with the conveyance 49-11

12. General Warranty Deed Contains the following promises/representations: Grantor owns interest he/she is conveying Grantor owns interest he/she is conveying Grantor has right to convey the property Grantor has right to convey the property No mortgages/liens against property that are not stated in deed No mortgages/liens against property that are not stated in deed Grantee will not be “disturbed” by anyone who has better claim to property title, with promise to defend grantee’s title against such claims, or to reimburse grantee for any money spent in defense and/or settlement of such claims Grantee will not be “disturbed” by anyone who has better claim to property title, with promise to defend grantee’s title against such claims, or to reimburse grantee for any money spent in defense and/or settlement of such claims Grantor will provide grantee with any additional documents that grantee needs to perfect his/her title to property Grantor will provide grantee with any additional documents that grantee needs to perfect his/her title to property 49-12

13. Other Types of Deeds: Special Warranty Deed: No representation of guarantees contained in “general warranty” deed; grantor is merely promising that he/she has not done anything to lessen value of property transferred Special Warranty Deed: No representation of guarantees contained in “general warranty” deed; grantor is merely promising that he/she has not done anything to lessen value of property transferred Quitclaim Deed: No warranties; grantor simply conveys whatever interest he/she holds Quitclaim Deed: No warranties; grantor simply conveys whatever interest he/she holds 49-13

14. Types of Involuntary Transfers: Adverse Possession: When person openly treats real property as his/her own, without protest/permission from real owner, for statutorily-established period of time, ownership is automatically vested in that person Adverse Possession: When person openly treats real property as his/her own, without protest/permission from real owner, for statutorily-established period of time, ownership is automatically vested in that person Condemnation: Government acquires ownership of private property for “public use” for “just compensation” over the protest of the property owner Condemnation: Government acquires ownership of private property for “public use” for “just compensation” over the protest of the property owner 49-14

15. Restrictions On Land Use Restrictive Covenants: Promises to use/not to use land in particular ways Restrictive Covenants: Promises to use/not to use land in particular ways Zoning: Restriction of use of property to allow for the orderly growth and development of community and to protect “health, safety, and welfare” of its citizens Zoning: Restriction of use of property to allow for the orderly growth and development of community and to protect “health, safety, and welfare” of its citizens 49-15