1. Real Estate Principles and Practices Chapter 2 Land: Its Characteristics and Acquisition © 2010 by South-Western, Cengage Learning

2. Key Terms Accretion Ad valorem tax Adverse possession Allodial system Avulsion Bundle of rights Chattel Codicil Color of title Descent Devise Doctrine of prior appropriation Durability Easement by prescription Eminent domain

3. © 2010 by South-Western, Cengage Learning Key Terms Escheat Feudal system Fixtures Hereditaments Immobility Indestructible Intestate Involuntary alienation Land Land patent Littoral rights Mill Nonhomogeneous Personal property Police power Probate Profit a prendre

4. © 2010 by South-Western, Cengage Learning Key Terms Quiet title action Real estate Real property Riparian rights Scarcity Situs Tenements Testate Voluntary alienation

5. © 2010 by South-Western, Cengage Learning Overview Feudal vs. Allodial Physical & Economic Characteristics Real vs. Personal Property Real Property, Government & Personal Property Rights Acquiring and Loss of Ownership Ownership and land transfer unchanged

6. © 2010 by South-Western, Cengage Learning Evolution of Landownership Feudal System: Feudal System: King controls all the land King granted charters in North America Independence – opportunity for private land ownership

7. © 2010 by South-Western, Cengage Learning Evolution of Landownership Allodial System: Allodial System: right to own land by individuals Homestead Act Land patent: Land patent: document used to transfer land from the government to private individual

8. © 2010 by South-Western, Cengage Learning Economic Characteristics

9. © 2010 by South-Western, Cengage Learning Real Property Rights Bundle of Rights: Bundle of Rights: Possession and use of land to the exclusion of others Possess, exclude, sell, lease, mortgage, give away, exchange, and will Rights may be sold or leased separately

10. © 2010 by South-Western, Cengage Learning Real Property Rights Surface Rights: Surface Rights: visible structures and cultivation of the land Subsurface Rights: Subsurface Rights: Right to drill for oil or gas, dig for gravel and sand, or extract minerals Profit a prendre: Profit a prendre: right to use and extract from the land of another Air Rights: Air Rights: above the property

11. © 2010 by South-Western, Cengage Learning Real Property Rights riparian rights Moving body of water – riparian rights Share the use May not dam Reasonable use Nonnavigable: middle of the steam Water shortage – 1 st priority - household use

12. © 2010 by South-Western, Cengage Learning Real Property Rights littoral rights Nonmoving body of water – littoral rights Own to high water mark Use and enjoy may not divert Doctrine of prior appropriation: Doctrine of prior appropriation: first owner is privileged with first claim

13. © 2010 by South-Western, Cengage Learning Real Property Rights Groundwater: Groundwater: in the earth beneath the saturation point Percolating water: Percolating water: found underground Floodwaters: Floodwaters: overflow a body of water Tidelands: Tidelands: shoreline affected by tides

14. © 2010 by South-Western, Cengage Learning Rights of Government olice powers minent domain ax scheat

15. © 2010 by South-Western, Cengage Learning Rights of Government Constitution provides for collection of taxes for general welfare and defense of the nation Property Taxes pay for services Services enhance values Location determines cost of tax Other revenues reduce property tax Ad valorem tax: Ad valorem tax: according to value

16. © 2010 by South-Western, Cengage Learning Rights of Government Mill: Mill: Tax expressed in dollars 1/10 th of 1 cent $80,000 X.35 $28,000 X.080 $ 2,200 Appraised Value % of taxation Assessed value Mill levy Taxes

17. © 2010 by South-Western, Cengage Learning Rights of Government Tax expressed in dollars $2.75 per $100 of appraised value $80,000 X.0275 $ 2,200 Appraised Value Per $100 of value Taxes

18. © 2010 by South-Western, Cengage Learning Rights of Government Cost to pay for improvements Levied against property adjacent to the improvements Front footage

19. © 2010 by South-Western, Cengage Learning Rights of Government Government right to take private property for public use “just compensation” Condemnation proceedings: act of taking the property

20. © 2010 by South-Western, Cengage Learning Rights of Government

21. © 2010 by South-Western, Cengage Learning Rights of Government

22. © 2010 by South-Western, Cengage Learning Rights of Government

23. © 2010 by South-Western, Cengage Learning Rights of Government Restrictions and controls imposed by local government Zoning Building codes Subdivision regulations Traffic regulations Environmental protection laws

24. © 2010 by South-Western, Cengage Learning Personal Property vs. Real Property

25. © 2010 by South-Western, Cengage Learning Personal Property vs. Real Property Personal property that becomes real property when attached

26. © 2010 by South-Western, Cengage Learning Personal Property vs. Real Property Items installed by a tenant for use in a trade or business If not removed, owner acquires the fixtures through accession

27. © 2010 by South-Western, Cengage Learning Personal Property vs. Real Property Leasehold improvement: fixture installed by the landlord Remain with property Trade fixtures are removable by the tenant

28. © 2010 by South-Western, Cengage Learning Acquiring Ownership: Voluntary Alienation Owner voluntarily sells to purchaser

29. © 2010 by South-Western, Cengage Learning Acquiring Ownership: Voluntary Alienation

30. © 2010 by South-Western, Cengage Learning Acquiring Ownership: Voluntary Alienation

31. © 2010 by South-Western, Cengage Learning Acquiring Ownership: Voluntary Alienation

32. © 2010 by South-Western, Cengage Learning Acquiring Ownership: Voluntary Alienation

33. © 2010 by South-Western, Cengage Learning Acquiring Ownership: Voluntary Alienation

34. © 2010 by South-Western, Cengage Learning Losing Ownership Rights: Involuntary Alienation

35. © 2010 by South-Western, Cengage Learning Losing Ownership Rights: Involuntary Alienation