2.  Real property is immovable and includes:  Land and Structures: land includes the soil, and all natural and artificial structures on it (unless agreed otherwise).  © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2

3.  Real property is immovable and includes (cont’d):  Airspace and Subsurface Rights: subsurface rights can be titled and sold separately.  Plant Life and Vegetation: crops can be sold separately. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 3

4.  Ownership in Fee Simple Absolute gives the owner the greatest aggregation of rights, powers and privileges possible under American law.  Owner has indefinite right to exclusive possession and use of property.  © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 4

5.  Fee Simple (cont’d).  Nuisance: interference with another’s right to use and enjoy his property.  CASE 26.1 Biglane v. Under the Hill Corp. (2007). Was the injunction reasonable considering the Biglanes knew about the noise before moving in? © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 5

6.  Estate that lasts for the life of some specified individual.  During life tenant’s ownership, she can possess, use, and take the fruits of the estate, but not take from the property itself. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 6

7.  Tenancy in Common: each owns an undivided interest in the property. At death, interest passes to tenant’s heirs.  Joint Tenancy: each owns undivided interest. At death, interest passes to surviving joint tenant(s).  © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 7

8.  Tenancy by the Entirety: (uncommon) ownership to husband and wife.  Community Property: property acquired during marriage. Each spouse owns an undivided half- interest. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 8

9.  Created when owner or lessor conveys right to possess or use the property to a lessee (tenant) for period of time.  Fixed-Term Tenancy (or Tenancy for Years): express contact for specified period of time.  © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 9

10.  Periodic Tenancy: no definite duration, but rent paid at certain intervals.  Tenancy at Will: termination of lease without notice.  Tenancy at Sufferance: tenant wrongfully possesses property. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10

11.  Easement: right of a person to make limited use of another person's real property without taking anything from the property.  Profit: right to go onto another’s land and take away some part of the land itself or some product of the land.  © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 11

12.  Easement or Profit Appurtenant:  Owner of property (dominant) has right to go onto adjacent property (servient).  Easement goes with the land at sale or transfer.  © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 12

13.  Easement or Profit in Gross:  Right to go onto non-adjacent property by business or utility company.  Easement goes with the land at sale or transfer. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 13

14.  Creation of an Easement or Profit:  Must be in writing created by deed, contract, or will.  Can be created by implication.  Can be created by necessity.  Can be created by prescription. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 14

15.  Termination of an Easement or Profit:  Nonuse with intent to abandon.  License:  Revocable right of a person to come onto other person’s land.  Grants no interest in the land. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 15

16.  Listing Agreements: between Seller (or Buyer) and a Real Estate Agent.  Real Estate Sales Contracts: must be in writing and signed, to be enforceable under the Statute of Frauds.  © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 16

17.  Real Estate Sales Contracts (cont’d).  Contingencies.  Closing Date and Escrow.  Implied Warranty of Habitability.  Seller’s Duty to Disclose Hidden Defects. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 17

18. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 18

19.  Deeds: written instrument used to transfer interests in real estate.  Necessary components:  Names of Grantor and Grantee.  Words evidencing intent to convey.  Legally sufficient description.  Grantor’s Signature.  Delivery of the Deed. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 19

20.  Types of Deeds:  Warranty Deeds.  Special Warranty Deed.  Quitclaim Deed.  Grant Deed.  Sheriff’s Deed. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 20

21.  Recording Statutes.  Recording a deed (or any interest in real property) puts the public on notice of the new owner’s interest in the land and prevents the previous owner from fraudulently conveying the same interest to another buyer.  © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 21

22.  Recording Statutes (cont’d).  Marketable Title: grantor is obligated to transfer title that is free from encumbrances and defects.  Title Search.  Methods of Insuring Good Title: most common is title insurance. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 22

23.  Adverse Possession: occurs when one person possesses the property of another for a certain statutory period of time, that person automatically acquires title to the land, just as if there had been a conveyance by deed.  © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 23

24.  Adverse Possession (cont’d).  Must be: Actual and Exclusive, Open, visible and notorious, Continuous and peaceable, Hostile and adverse.  CASE 26.2 Scarborough v. Rollins (2010). What was the key factor in Rollins’ proof of title to the land? © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 24

25.  Rights in property are constrained by federal, state, and local laws.  Eminent Domain. The Fifth Amendment gives the government the right to take (condemn) private land for “public use” with just compensation to owner.  © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 25

26.  Eminent Domain (cont’d).  CASE 26.3 Kelo v. City of New London, Connecticut (2005). Is taking private land for economic development a true public use of private property?  Legislation Prohibiting Takings for Economic Development. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 26

27.  Restrictive Covenants: a private restriction on the use of land and is generally binding on the purchaser of the land because it “runs with the land” as stated in the deed.  Inverse Condemnation : government takes land without paying compensation at all. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 27

28.  Police Power:  U.S. Supreme Court has held that zoning is a legitimate exercise of government’s police powers.  Broad discretion to zone as long as it is rationally related to health, safety, or welfare of community.  Subdivision Regulations.  Growth-Management Ordinances.  © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 28

29.  Purpose and Scope of Zoning Laws.  Permissible Uses of Land: residential, commercial, and industrial.  Other Zoning Restrictions. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 29

30.  Exceptions and Special Incentives.  Variances: allows exception to the zoning rules.  Special-Use Permits.  Special Incentives: encourages development, usually by tax incentives and abatements. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 30